Need to Cut Back on Retirement Savings This Year? At Least Aim to Do This.

If you're struggling to keep up with your living costs this year, you're not alone. Many folks are having difficulty paying their bills as everything seems to keep going up.

You may be resigned to having to cut back on retirement savings this year to compensate for your larger expenses. But if you can't save as much this year as you did last year, there's one milestone to aim for.

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Don't give up your 401(k) match

If you have access to a company match in your 401(k) plan, you should do everything in your power to try to snag it in full this year. Every dollar you give is up is money you can invest and grow into a much larger sum.

Say you saved $6,000 for retirement last year, but based on this year's budget, you can't swing nearly as much. If your company offers a $3,000 match in your 401(k), try to at least save that $3,000 in full.

Here's what happens if you don't. Imagine you only sock away $1,000 in your workplace plan, leaving $2,000 in matching dollars unclaimed.

If your 401(k) delivers an 8% annual return, which is a bit below the stock market's average, and you're 30 years away from retirement, giving up a $2,000 match will actually mean forgoing over $20,000 when you account for lost investment gains.

This isn't to say that claiming your full 401(k) match will be a snap. But if necessary, try to make some spending changes or even work a side job to make it work. Otherwise, you could end up losing out on a lot more money than expected.

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