Is it Possible to ‘Catch Up’ with Retirement Planning?
Are you in your 40s or 50s, concerned and thinking that it may be too late for you to start planning for your retirement? Although you may be getting a later than average start, this shouldn’t deter you from setting up a practical retirement plan. After all, starting late is better than not starting at all.
Information on Forbes revealed that a mere 18% of American employees that are 55 or older have said that they’re highly confident that they’ll have enough money saved to retire comfortably. Just under 50% noted that they were ‘somewhat confident’ that they’d be able to afford to retire.
If you’re concerned about not having a retirement plan yet, the tips below can help get you started with planning for this part of your life:
Reevaluate Any Existing Plans you may have
If you already have somewhat of a plan in place for how you’re going to afford retirement, now is the time to reevaluate it – especially if you haven’t paid much attention to it over the past few years.
Start off by estimating your projected spending during retirement. How much will you need to live on each month? If you aren’t sure where to start or how to calculate the amount you’ll need to live on, it’s recommended to contact a reputable financial advisor for assistance.
Kids Moved Out? Start Saving Even More
After your kids have moved out of the house, you should be able to reallocate the funds you were spending on their needs towards your retirement savings. If you’re fortunate enough to still be earning the same as you were when your kids lived at home, you’ll find that it will be possible to save quite a large chunk of money from here on out.
Cut Spending wherever Possible before Retirement
As they enter their retirement years, a number of Americans adjust their lifestyles accordingly. For some, it may be aspects as simple as opting for cheaper cable, phone and internet plans – while others may have to consider more drastic measures like moving to cheaper cost of living areas. Anything that you intend changing during retirement can in fact be changed now, which will allow you to live more comfortably during your golden years.
Convert Monthly Installments to Savings
Have you recently paid the last installment on your car or mortgage? If so, don’t consider these amounts as extra spending money. Instead, transfer them directly into your retirement savings each month – and watch your portfolio start growing.
Take Advantage of Company Retirement and 401(k) Plans
When last did you transfer contributions to your company retirement fund or 401(k)? If these options are available, you should be taking full advantage of them because this will provide you with some extra cushioning in your retirement budget. Many companies make matching contributions to plans like these, so you shouldn’t let the opportunity of this free money go to waste.
If you want to start making up for lost time with your retirement investing and aren’t sure how to begin, contact our financial advisors for assistance today.