How to Boost Your Retirement Contributions Annually without Feeling the Pinch
- Heather Asteriou
- Apr 9
- 2 min read
Does the idea of saving more for retirement sound daunting? For university employees, contributing the first 5% to your university retirement plan is standard—but what if you want to save more? The great news is, you can effortlessly build your retirement savings by gradually increasing the amount you contribute to a supplemental retirement account like your 403(b) SRA or 457(b). Even small dollar increases per paycheck can make a significant difference over time.
The Impact of Incremental Dollar Increases
Increasing your supplemental retirement contributions by a small, manageable amount each pay period can dramatically grow your savings. Thanks to the power of compound interest, even modest increases can significantly enhance your retirement nest egg.
Example:
If you're currently contributing $100 per paycheck to your 403(b) SRA, increasing it by just $25 per paycheck each year could substantially boost your savings over your career—without significantly affecting your monthly budget.
Simple Ways to Gradually Increase Your Contributions
Here’s how university employees can easily and painlessly grow their retirement savings:
Align increases with pay raises: When you receive a salary increase, allocate a portion (e.g., $25 or $50) of that raise to your supplemental retirement account.
Set a calendar reminder: Choose a regular time each year (such as during open enrollment or tax time) to review and slightly increase your contributions.
Automate your increases: If available, use automatic payroll deductions to incrementally raise your contribution amount each year.
Budget-Friendly Tips to Offset Higher Contributions
If you’re concerned about affording higher contributions, consider these easy budgeting tips:
Evaluate discretionary spending: Reducing or eliminating unused subscriptions or minor expenses can free up funds for retirement savings.
Use university benefits: Take advantage of free or discounted university services to save additional money, redirecting the savings to your retirement accounts.
Adjust gradually: Small, incremental adjustments are much easier to manage than large, sudden increases.
Maximize Your Savings Power
Even modest increases in your supplemental retirement accounts, like the 403(b) SRA and 457(b), can significantly impact your financial future. By regularly reviewing and gently increasing your contributions, you'll build your retirement fund effortlessly.
Looking for More Tips?
This blog is part of Provizr’s Annual Financial Tune-Up series created especially for university employees. Get the complete checklist by downloading our comprehensive and easy-to-use guide today!
Next in the Series:
Stay tuned for next week’s topic, “Measuring Your Retirement Portfolio Performance the Right Way,” to learn how to ensure your investments are truly working in your favor.
Did you miss the 1st topic in this series, “Why You Must Review Retirement Beneficiaries Every Year”? Click here to go back and read what you missed out on