afford to retire

Steps to take when you can’t Afford to Retire

Although several individuals reach the age where they’d like to retire, many of them simply cannot afford to do so and think it’s too late to try and remedy their financial situation. However, there are a few steps that can be taken in an effort to solve this dilemma.

  1. Enlist the Help of a Reputable Financial Advisor

Trying to determine whether you’ll have enough money to retire with can quickly become overwhelming – to the point where many individuals simply give up and hope for the best. However, speaking with an accredited and reputable financial advisor should be your first course of action to take.

A financial advisor will take a look at your current savings strategies (if you have any) and then provide a plan of action that will involve you investing a predetermined amount of money each month into an appropriate retirement fund. 

  1. Consider Delaying your Retirement Date

Although you may have grown tired of taking part in the corporate rat race every day, you will have to ensure that your finances are in order before handing in your resignation. 

Delaying retiring for a few years will not only allow you to continue putting money into your retirement accounts; waiting a few more years before claiming Social Security will mean that your checks will be larger as well. For each year that you delay obtaining Social Security payments, you’ll receive an additional 8% in benefit payments – up to age 70. 

  1. Evaluate your Current Lifestyle

Being able to afford to retire can sometimes mean that you’ll have to make a few changes to your current lifestyle so more money can be saved. 

Take a look at your current budget to see where expenses can be reduced. For example, you might need to reduce the amount of money you’re currently spending on entertainment, meals out or even traveling. Now will also be the time to do everything you can to reduce or eliminate any debt you may have, such as credit cards and personal loans. 

Reducing these expenses will enable you to invest more into your retirement accounts each month. 

  1. Consider Part-time Employment

If your only sources of retirement income will be Social Security and whatever you’ve managed to save until now, you’ll most likely have seen that a lot more money will be needed. However, this need not be the case if you’re willing to consider part-time employment after officially retiring. This will not only benefit you financially; it will help keep your body and mind active as well. 

If you’re unfortunate enough to be behind on saving for retirement, it will mean that you’ll have to put in extra effort as soon as possible to try and catch up. Should you wish to discuss your retirement plans with a professional financial advisor, get in touch with us today. We look forward to helping you to better understand and manage your finances so that your retirement years can be something to look forward to.