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7 Ways to Jump-Start Your Retirement Savings in 2015

Saving more for retirement is a common New Year's resolution. But it takes more than tucking away a few dollars when you can to build retirement security. Here's how to make a better retirement resolution you can stick to throughout the new year.

Make a specific plan. Aiming to save more this year isn't enough. "Don't just say this is the year that you'll start to save," says Hal Hershfield, an assistant professor of marketing at UCLA's Anderson School of Management. "Rather, set up a specific plan. For example, when I get back to work on January 5, I'm going to make an appointment with my human resources manager and figure out how to start contributing or contribute more to my retirement account."

Save automatically. Have part of your paychecks directly deposited into an investment account before the money ever gets to your checking account. That way you don't have to find the motivation to save every month, and you won't be tempted to spend the money. "Make saving for retirement logistically easy. The best way is to set up automatic transfers from the paycheck to the 401(k) or 403(b)," says Kent Smetters, a business economics and public policy professor at the University of Pennsylvania's Wharton School. "For workers who don't have access to a 401(k) or 403(b) through their employer, set up a SEP or Solo 401(k)." You can also set up a direct deposit to an individual retirement account.

Get your employer to chip in. The fastest way to grow your retirement savings is to get help from your employer. A 401(k) match or other type of company contribution to a workplace retirement account will likely be the best possible return you can get on your investments. "Go ahead and put in at least enough to get the free money," says Kevin Brosious, a certified financial planner and president of Wealth Management Inc. in Allentown, Pennsylvania. Make sure you meet the necessary requirements to get as big of a company contribution to your retirement account as you can.

Claim retirement saving tax breaks. The federal government will also help you to save for retirement in the form of tax deductions, credits and other retirement saving perks. You can defer paying income tax on traditional 401(k) and IRA contributions until you withdraw the money from the account. Or you can prepay income tax at your current rate on Roth 401(k) and Roth IRA contributions to get tax-free distributions in retirement. Low- and moderate-income savers can additionally claim the saver's tax credit on their retirement account contributions.

Save part of windfalls. Each time you get a raise, bonus, tax refund or other windfall of cash, tuck at least a portion of it away for retirement. If you put the money in a traditional 401(k) or IRA, this will additionally reduce the income tax you owe on the influx of cash.

Find ways to cut back. Look back on your expenses from the past year, find some painless places to make cuts and funnel that savings into a retirement account. "Look online at a credit card statement that organizes the expenses for you, and see if there are any ones that could easily be reduced in the new year," Hershfield says. "Cutting back on these expenses even a little bit can free up more money for those automatic monthly deposits into a saving account."

Imagine your future self. Retirement might be years or even decades away. We often think there will be plenty of time to save for retirement later, when we are further along in our career or making more money. But you are getting closer to retirement every year, and the sooner you get some money into an investment account, the more work compound interest can do for you. "We often think that the past year went quickly. So, the next 20 years are just 20 times another quick year," Smetters says. "It is not that much time."



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