Bellmore Group Management Services, Tokyo Japan How to save for retirement on a tight budget | Page 2

payments on fixed loans with low interest, especially if it prevents you from investing in retirement. Review your finances
and strike a balance between long-term savings and immediate expenses.
Use your employee benefits
Saving for retirement is easier with the support of your employer, but the sad truth is that only about one-third of
Americans are taking advantage of their 401(k)s or other tax-deferred retirement plans. If you haven't already, redirect
your savings as soon as possible, and be sure to ask whether your company matches a portion of your contributions.
There's nothing quite as satisfying as free money, and your employer's 401(k) matching offer is exactly what you need to
supercharge your efforts.
While you're at it, don't forget to learn about the other ways your employer can help you save money. If your company
offers a health savings account (HSA), your out-of-pocket medical expenses are tax-free, which frees up a portion of your
income to save for retirement. The same goes for flexible spending, which can include expenses like child care, home
improvement supplies, and more.
Open your own savings vehicle
There are ways to save for retirement even if you don't have access to an employer-sponsored plan. The value of
compound interest means that your money has the power to grow until the day you retire, and it's important to take
advantage of the time you have between now and then. Consider opening an individual retirement account (IRA), which
allows you to contribute up to $5,500 a year or $6,500 a year if you're over age 50.