Feel Like You’re Behind in Retirement Planning?
Are you afraid that it’s too late to start planning for retirement? You might think that if you’re in your 40s or 50s, it’s too late for retirement, but that shouldn’t discourage you from making moves toward a retirement plan today. As Morris Armstrong, a professional financial planner says, “You have to start somewhere.”
Although you might be starting later than other individuals on retirement planning. According to an article on Forbes.com, “Only 18% of American workers 55 or older say they’re ‘very’ confident they’ll have enough money for a comfortable retirement, and another 49% are ‘somewhat’ confident,” based on the Employee Benefit Research Institute’s 2017 Retirement Confidence Survey.
If you’re worried about your retirement plan, many Americans are in the same boat as you, so here are a few things you can do to get started on. It’s never too late to be planning for your future.
Reevaluate Your Plan
Do you already have a plan in place for what you’re going to do during retirement? Perhaps, your plan is outdated, or you haven’t actually made the contributions you were expecting to. Start by estimating you projected spending during retirement. How much money are you going to need on a monthly basis? Consider the areas where you’d draw income from and how much they will impact your retirement. If you’re not sure where to start, be sure to consult a professional financial planner!
Empty Nest? Time to Save!
As the kids enter adulthood and become more independent, you can reallocate the funds spent on your children into your retirement savings. If you are still making the same income that you were when you were funding your children’s livelihoods and education, you’ll notice that you can save a large amount of money.
Retire Spending Before Retiring
Many Americans adjust their lifestyles once they enter retirement. It might be as simple as opting for a basic cable plan and greater limitations on your phone plan. Anything you plan on changing during retirement can be changed now, so you can have a more comfortable retirement.
Turn Old Payments into Savings
Just finished paying off a car? School loans? Your home? Don’t look at the extra money you have at the end of the month as pocket change! Put it into your retirement savings. Since you were making the payments before, you won’t miss the money, but the retired you will thank you in the future.
Take Advantage of 401ks and Company Retirement Plans
When was the last time you contributed to your 401k? If you have money going into an external savings account, you might want to consider redistributing it to your 401k or a retirement plan offered by your work. This way you save on taxes and have a cushion to land on during your retirement. If you’re unsure about your company’s retirement plan, read up! Many companies contribute to their employees’ retirement plans, so don’t let this money go to waste.
Retirement can be a scary thing if you don’t feel prepared. Remember that you should never give up on saving for retirement!