Rich older Americans are using these 5 retirement saving strategies to supercharge their nest eggs — how many can help you?

The U.S. Department of Labor estimates you’ll need 70% to 90% of your preretirement income to maintain your standard of living. There’s no single way to measure the right target number either, though Citizens Financial Group cites a range of $1 million to $1.5 million to guarantee a comfortable retirement.

The wise strategy is not to sit passively on your hefty nest egg, but to continue growing it. Here are five savings strategies you can consider to help you get there.

Leverage tax-deferred growth

The IRS has no age limit on how long you can continue IRA contributions, and your money will continue to grow tax-free as you save. But there are still contribution and deduction limits to be aware of.

If you’re covered by a retirement account at work, traditional IRA deductions are phased out for married couples if your modified adjusted gross income (MAGI) is between $123,000 and $143,000. With a Roth IRA, that phase-out happens between $230,000 and $240,000. For single filers, the upper limits are $87,000 and $161,000 respectively. Fortunately, the IRA contribution limit in 2024 is $8,000 if you're 50 or older, up more than 14% from 2022.

Move to a less expensive part of the country

From 2015 to 2019, only 5.9% of people aged 65 to 74 chose to relocate, according to U.S. Department of Commerce data. But definite financial advantages lie in moving from a high-cost-of-living locale to a much less expensive one.

As of the first quarter of 2024, the Council for Community and Economic Research found that the Cost of Living Index in San Francisco (the nation's fourth-most expensive city) is 169.6 — more than double that of at least 10 of the least expensive areas, including Amarillo, Texas (83.1). If you want to stay closer to your hometown, a cost-cutting move is also entirely possible. RentCafe estimates that the cost of living in Rockford, Illinois is 24% lower than in Chicago — only 90 miles apart.

Start a health savings account (HSA)

Healthcare costs have a way of snowballing in retirement. A report from Fidelity estimates that a 65-year-old entering retirement could expect to spend $165,000 on healthcare during retirement. With an HSA, you set aside pre-tax dollars for qualified medical expenses like deductibles, copayments and coinsurance and ultimately lower your out-of-pocket expenses later on. A financial advisor can help guide how much you contribute to an HSA depending on your current and future financial goals.

Invest a small portion of your portfolio in cryptocurrency

Yes, cryptocurrency has a well-earned reputation for volatility. But many financial experts say it’s safe and potentially profitable to invest in it, as long as you limit your risk exposure. Working with retirees worth between $2 million and $10 million, a certified financial planner, Evan T. Beach, told Kiplinger that it should typically total no more than 5% of your portfolio.

For example, if you invested in Bitcoin five years ago, you may have realized a substantial return on your investment. You would have had to hold on for a prolonged period, though, as it’s dipped by as much as 70% over an eight month period: November 2021 to June 2022.

Contribute to a 529 plan

Sponsored by all states except Wyoming, a 529 plan is a savings account that goes toward qualified expenses for a family member’s education. It can be used not just for your children or grandchildren, but also for relatives such as a brother, sister, nephew or niece.

The savings plan offers tax-deferred growth and tax-free withdrawals when you pay for things like tuition, fees, supplies, computers and textbooks. While there is a $10,000 annual withdrawal limit for K-12 students, your 529 plan can be used for any public or private college, graduate, elementary or secondary school program. In other words, you can graduate to a smart strategy for freeing up nest egg money — and march to the head of the class.