6 Proven Steps to Maximize Your Retirement Savings


Saving and investing as much as possible during your working years can provide you with financial security and flexibility in your retirement years. Whether you dream of early retirement, a career change, or simply want peace of mind in your later years, maximizing your retirement savings is a key step toward achieving your goals. In this comprehensive guide, we will explore various strategies to help you make the most of your retirement savings.

6 Proven Steps to Maximize Your Retirement Savings

Contribute to Your Workplace Retirement Account Up to the Employer Match

One of the most effective ways to maximize your retirement savings is by contributing to your workplace retirement account, such as a 401(k) or 403(b). The first step is to check if your employer offers a matching contribution. This means that your employer will match a certain percentage of your contributions, up to a specified limit.

To take full advantage of this benefit, contribute enough to your retirement plan to receive the maximum employer match. It’s essentially free money that can significantly boost your retirement savings. Make sure to also understand the vesting schedule, which determines how long you need to work to fully own the employer-contributed funds.

Maximize Contributions to Your Health Savings Account (HSA)

In addition to retirement savings, you should plan for healthcare costs in retirement. If you have an HSA-eligible health plan, consider contributing the maximum amount to your Health Savings Account (HSA). HSAs offer unique tax advantages:

  • You receive an initial tax deduction for your contributions.
  • The earnings on your contributions grow tax-free.
  • Withdrawals for qualified medical expenses are tax-free.

For 2023, the contribution limits are $3,850 for individuals and $7,750 for families, with an additional $1,000 catch-up contribution for those aged 55 and older. Invest a portion of your HSA funds for long-term growth to cover future healthcare expenses in retirement.

Maximize Contributions to Your Workplace Savings Plan

Once you’ve secured the employer match and contributed to your HSA, consider maximizing your contributions to your workplace retirement plan. In 2023, you can contribute up to $22,500 pre-tax to your 401(k), with an additional $7,500 catch-up contribution if you are 50 or older.

Fidelity recommends aiming for 15% of your pre-tax salary, including employer contributions. If you can’t start with 15%, contribute what you can afford and gradually increase your contributions as your income grows.

Contribute to an Individual Retirement Account (IRA)

Individual Retirement Accounts (IRAs) offer additional opportunities to save for retirement. There are various types of IRAs, including Roth IRAs and traditional IRAs. You can contribute to one or more of these accounts as long as your total contributions do not exceed your earned income or the IRS limits.

For 2023, the contribution limit is $6,500, or $7,500 if you are 50 or older. IRAs provide tax advantages that can enhance your retirement savings, so consider your financial goals and tax situation when choosing between a Roth or traditional IRA.

Utilize After-Tax Contributions to Your 401(k)

Some employers allow after-tax contributions to your 401(k) account, which can help you save beyond the individual contribution limits. In 2023, the combined employer and employee limit for after-tax contributions is $66,000, or $73,500 if you are 50 or older.

Consider your financial goals and consult with a financial professional to determine the best strategy for handling after-tax contributions. One option is converting after-tax 401(k) contributions into a Roth 401(k), which can offer tax-free withdrawals in retirement.

Invest in Brokerage Accounts

If you’ve maximized your contributions to tax-advantaged retirement accounts, you can continue saving and investing in regular brokerage accounts. While these accounts lack the same tax advantages, they offer flexibility and potential for long-term growth.

Decide whether you want to manage your investments yourself or seek professional advice. Fidelity provides a range of investment options to suit your preferences, from DIY investment strategies to professionally managed accounts with various fee structures.


Maximizing your retirement savings is a crucial step toward securing your financial future. By following these strategies and taking advantage of tax-advantaged accounts, employer matches, and prudent investment choices, you can set yourself up for a comfortable and fulfilling retirement. Start early, stay consistent, and regularly review your financial plan to adapt to changing circumstances. Remember, the more you save now, the more options you’ll have later in life.

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