Ask Sexton Advisory Group: How Do I Fast-Track My Retirement Savings?

A recent GOBankingRates survey found that 39% of Americans aren’t saving for retirement. While this data isn’t surprising, it validates the very real financial challenges facing Americans today. This data isn’t particularly surprising, and it validates the very real financial challenges facing Americans today. Wages are simply not keeping up with sustained inflation and rising living costs, forcing most people to prioritize short-term expenses like groceries, rent/mortgage payments, transportation, childcare, or emergency medical expenses over long-term investments like saving for retirement.

With over 20 years of personal finance and retirement planning experience as a financial consultant and CEO of Sexton Advisory Group in San Diego, CA, here are my recommendations on steps you can take if you want to fast-track your retirement savings:

1. Having a fully funded emergency fund is critical.

If you’re constantly playing defense with unexpected costs, which in life are inevitable, you’ll never get to an offensive position when it comes to saving for retirement. This is where your emergency fund comes in clutch — it can soften the blow of an unexpected medical expense, house repairs, job loss, etc. without having to impact your retirement savings. Plan to have at least 3–6 months’ worth of expenses covered in your emergency fund. While this can sound daunting, starting small — even setting aside $50 — $100/month — can add up overtime. Store your emergency fund in an easy-to-access high yield savings account (HYSA) to take advantage of higher interest rates.

2. Downsize where you can.

As mentioned above, smart budgeting habits can only take you so far if you’re living paycheck to paycheck. If you’ve exhausted all your budgeting options and saving for retirement is a priority for you, it may be time to consider downsizing your lifestyle. This looks different for everyone — for some, it’s going from a 2-car household to 1; for others, it can be moving to a less expensive neighborhood.

3. Consider switching jobs or taking on additional work.

If your salary isn’t keeping up with the pace of inflation, it might be time to consider a new role with higher pay or one that offers retirement incentives, like employer 401(k) matching. Taking on additional part-time work, whether via freelancing or consulting, can also kickstart some funds to contribute to your retirement accounts.