The 4 Fastest Ways to Secure Your Retirement Future

The ideal retirement will look different for every person. For some it may mean traveling the world. But for others, it may look like relaxing in the backyard with friends every other weekend. Regardless, it's going to take money to secure that dream. Once you know how much you need to save, the only question that remains is how to get to that place as quickly as possible.

The best way to secure your retirement is to start saving as early as possible to take advantage of compound interest. But beyond that, there are steps you can take to get to a secure retirement even faster.

Here are four moves you should seriously consider if you want to accelerate your retirement savings.

1. Get your full employer match

The more you can generally afford to contribute to a retirement account, the better. While most people can't contribute the maximum annual contribution limits for a 401(k), which is $23,000 for 2024 for those under 50, you may have the option to get your employer to match up to a specific amount of your annual salary.

For example, it may provide a match of up to 3% of your annual salary. So if you earn $75,000 a year, that's up to $2,250 per year that can grow over time. That's free money for retirement, so it's vital to make sure that you're contributing at least enough to get the full employer match to maximize your retirement savings.

2. Revisit your contribution amounts each year

Your 401(k) can be a convenient way to save, since they operate as set-it-and-forget-it accounts. That's because you get to decide how to invest your money and how much to contribute from each paycheck when you get the job.

But the flipside of this convenience is that you may forget to increase your contributions regularly, meaning even if you're earning more and can afford to contribute more based on your updated budget, you may not be doing so.

By contacting your provider to increase your retirement contributions, you can boost your total savings.

3. Set up auto transfers to an IRA

Even if you're already contributing to a 401(k) through your employer, you likely still qualify to contribute to an individual retirement account (IRA) as well. For those who are maxing out their annual 401(k) contributions, that means an extra $7,000 to $8,000 per year you can contribute to your retirement, depending on your age.

But even if you aren't maxing out your 401(k) each year, it's still worth looking into opening a Roth IRA. These won't reduce your taxable income now, but they can provide you with tax-free income in retirement.

It's relatively easy to open one, too. Once you decide on a brokerage, you can open an IRA account and set up automatic deposits to that account. That way, you'll be addressing the tax issue head on with minimal effort. (Just make sure that those funds are actually being invested, as that's not always automatic with an IRA.)

4. Avoid early distributions and loans

If you run into financial issues on your road to retirement, it can be tempting to dip into your retirement savings. After all, if you've been saving for several years, or even longer, there may be a significant amount of money in those accounts. But there are consequences to taking early distributions or loans from retirement accounts that will negatively impact how much you actually get. (For example, there is a 10% early withdrawal penalty if you take money out of a 401(k) or IRA before age 59 1/2.)

And, of course, taking money out will reduce how much you'll have access to in retirement. Plus, you'd lose out on any market gains during the time that those funds are not actively being invested.

If you're having financial difficulties, it's best to look at alternatives, such as personal loans, home equity loans, and 0% APR balance transfer cards, before considering something like an early 401(k) withdrawal or loan.

Your dream retirement may feel as if it's miles away, especially if you run into money problems along the way. But by making small adjustments to your retirement contributions, as well as making sure that you're giving your money as much time as possible to grow, you'll be setting yourself up to reach that goal as quickly as possible. The key is staying attentive to your retirement strategy over time.