More and more Americans are now working longer into their golden years. In fact, one in five have no retirement savings at all. Unfortunately, too many of these people never learned how to save for retirement.

Don’t make the same mistake. Learn these tips and tricks today.

3 Simple Tips for How to Save for Retirement

1)      Start as Soon as Possible

Whether you are a millennial or a boomer, the best thing you can do for your retirement is to start saving today, if you haven’t begun already. Then, your money can begin to grow into a nest egg that can support you for a long time.

While it’s always important to save sooner rather than later, your investment strategy will depend on your age. Millennials can be more conservative to start because they have many years before retirement. However, a boomer who doesn’t have a large retirement fund may have to increase the size of their contributions.

Generally, it’s recommended that you set aside 15 percent of your gross income for retirement.

2)      Take Advantage of Retirement Savings Vehicles

Besides simply saving part of your income, there are other tricks for how to save for retirement. The most common and effective one is to enroll in an employer match 401(k). In essence, these accounts provide you with free money that will grow with interest until you become eligible to withdraw the funds.

Money from your paycheck that is directed to a 401(k) is tax deferred, which means it is not taxed until you withdraw it years later.

If you enroll in a 401(k) program at the beginning of your career, the contributions you make on a weekly basis could add up to a big financial cushion down the line.

3)      Don’t assume Social Security will Support you

Although it may seem like you make significant contributions to Social Security each paycheck, the reality is that the government’s retirement program alone will not be able to support your lifestyle once you stop working. You will most likely need personal savings to make up the difference.

If you are curious about how much you will receive from Social Security, check out your estimated benefits in this official online calculator. Then, you will have a better idea about how much of your current income to direct to retirement.

Your goal should be to live comfortably without stress and anxiety. One of the golden rules of how to save for retirement is to make realistic estimates about the expenses you will have after your regular paychecks stop arriving. Then, if need be, you can make adjustments to your retirement savings plan.

Retirement is your reward for a life of working hard. Don’t shortchange yourself by failing to act now. If you have questions about retirement or other financial planning topics, contact a local accountant today.