Got A Late Start With Your Retirement Planning?
It’s a scary statistic, but it’s true: according to a study conducted by the Employee Benefit Research Institute, nearly thirty percent of Americans aged 55 have only saved less than $10,000 for their retirement. If this scenario sounds familiar to you, then you know that your lack of saving is going to severely impact your retirement. However, there’s no use bemoaning your lack of retirement savings, especially as there are still several options you can take to build up your nest egg within a decade. Yes, it is possible to redress your late start with retirement planning – and here’s how:
Put Aside More Of Your Income. There’s no beating around the bush – if you want to retire with minimal comfort, you’re going to have to make big sacrifices now. If you can manage to put aside 30%-40% of your income into your retirement savings, you’ll be able to make up for a bit of lost time.
Change Your Retirement Age. Want to retire at 62? If you don’t have enough retirement savings, you’re going to have to readjustment those dreams of a Florida retirement and keep working for a few additional years. The extra years can definitely go a long way towards building up your savings and investments, as your nest egg will have more time to accumulate wealth. Remember, when it comes to retirement, time is money!
Get Tough. Saving up for your retirement should be your number one priority at this point, which means your other savings are going to have to take a backseat. If you’ve been saving up for your kid’s college education or to buy that second car or house, then it’s time to show some tough love. Your investment advisor can advise you what to do with the extra money you’ll get by avoiding these costs, and don’t worry too much about the guilt – your kid can get a student loan to help with the cost of university.
Increase Contributions To Your 401(k). A 401(k) retirement fund is easier to contribute to if you’re over fifty; if there’s a minimum cap on how much you can contribute, ask your human resources department if the rules are bent once an employee reaches a certain age. You may be pleasantly surprised at how much you can contribute once you’ve reached the golden years – so be sure to take advantage of this opportunity!
For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!
Authored by Kenneth Himmler, Sr.
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