When to consider increasing my 401(k) and IRA contributions

Saving for retirement can feel overwhelming at times. There is no shortage of things— bills, groceries, unexpected costs, for example—that compete for your money. If you’ve ever thought, “I’ll save more later,” you’re not alone.

But the truth is, you don’t need to wait for the perfect moment to save for retirement—or save more. The best time to increase your contributions may be when life gives you a little more room in your budget. What are those moments, and how can you use them to increase your retirement savings contributions? Here are six key times to consider.

A raise or bonus may be one of the easiest and most natural times to increase contributions in your retirement savings. When your income increases, you have extra money coming in, but you may not have yet changed your spending habits to match it. This creates a window where you can choose to contribute more to your retirement savings without sacrificing your other spending.

One idea to help convert that extra income into savings instead of spending is to immediately change your contribution level. What’s the retirement savings goal to eventually reach? Most recommendations are 15% of each paycheck to your retirement plan; that total includes any employer match. If you’re already saving 15%, you could direct new savings toward an individual retirement account, brokerage account, or high-yield savings account to support other financial goals. But remember: Even small changes—1% a year—add up over time. (It is suggested to save 50% or more of any net raises toward savings goals.)

Paying off debt—whether a student loan, car loan, credit card, or other obligation—often frees up funds that have been previously allocated elsewhere. The same is true when your expenses decrease—a child finishes daycare, your commute gets cheaper, or you refinance a home.

Often, extra cash like this slowly disappears into new spending, but milestones like debt payoff or lower expenses can easily be redirected toward your retirement savings. For example, if a $400 monthly payment ends, you can use that same amount to increase your contribution and help you build savings momentum.

Starting a new job often provides a natural time to reset some or all of your finances. If you have a new income, you may make changes—adjusting your budget, learning a new routine, and setting up benefits. Those changes are also a natural time to increase retirement savings contributions. Maybe you set a slightly higher contribution rate than you had before. Or, perhaps you now have an employer match, so increasing your contributions to get that match can help your savings grow even more. (Consider saving enough to get the employer match—it’s free money, essentially.)

Your annual benefits enrollment is a great time to check in. Think of it as a yearly opportunity to reset and refocus. During this time, you can review how much you are contributing and decide if you are ready to increase it, even if by a small amount. If your plan has it, consider auto escalation, which allows you to boost your contributions automatically each year until you reach a certain percentage; it saves you the trouble of having to remember to do it on your own.

Retirement plan limits can change over time, allowing you to contribute more each year. If your plan allows it, you may also be able to contribute extra once you reach age 50. These changes create built-in opportunities to save more without needing a major shift in your budget. If you are already contributing regularly, increasing your contributions when limits rise can help you move closer to the maximum. Checking these limits once a year can help you stay on track and make the most of your savings options.

Events like getting married, moving, or having a child can shift your priorities and your budget. These moments can feel uncertain, and taking time to adjust is nature. But big shifts can also be a time to take stock of your financial goals. You might find that you have more room to save, or you may need to adjust your approach to stay balanced. Checking in is an important first step.

Increasing your retirement savings takes time, and you don’t need to make big changes all at once. But milestones and other moments offer a chance for a level set with your goals and your plans.