By Fiona Leung on Feb 12, 2019
Time certainly goes by fast. One day you’re interviewing for your first job and the next thing you know you’re a few short years from applying for Social Security.
If you’ve planned for your retirement, you’ll likely have a good stash of funds saved. But the unfortunate news is that according to the Insured Retirement Institute, 42 percent of baby boomers have nothing saved for retirement, and even those that have saved don’t have nearly enough to survive on.
Other than panicking, there are many things that you can start doing today to help increase your retirement savings; Here are just a few:
- Consider downsizing. If you’re still holding on to that huge house, consider selling it and buying something smaller. While it can be difficult to let go of the home you’ve raised your family in, selling it will enable you to purchase a more affordable home with a smaller tax burden, less utility and maintenance cost, and the ability to put away some additional funds for the future. Besides, do you really want to still be mowing a lawn when you’re 70?
- Do a complete inventory of your spending and see where you can make cuts. Like the cost of maintaining a large home, you may find that you’re spending money on things that you no longer want or need. Get rid of them.
- Consider relocating to a more retirement-friendly city. It’s no secret that some cities are much more affordable for retirees than others. If you’re close to retiring, check out some affordable cities for seniors.
- Continue to work. If you love your job, why not just continue to work? Unlike 50 years ago, when companies routinely phased out their older workers, many companies today value the experience and work ethic that baby boomers bring to the table. Putting retirement off for five years can boost your retirement funds tremendously, particularly the amount of Social Security you will receive.
- If you’ve already retired, consider going back to work, even part time. There is a tremendous amount of opportunities available for skilled workers, and you can even jump into the freelance game, working from home. It will keep you busy, bring in some additional income, and allow you to keep your mind sharp.
- Pay down your debt. This could be just as important as saving. Being debt free will provide you with much more disposable income per month, which can be placed in a retirement account.
- Speaking of retirement accounts, be sure to take advantage of the increased contributions offered by any available retirement plans. If possible, contribute as much as the current law allows. You won’t regret it.
While you can’t go back in time and start saving earlier, I f you start planning for your retirement now, you can still live comfortably. Take some time to determine the options and opportunities available to you and start planning the next phase of your life today.
*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2022 Advisor Websites.