In a perfect world, people would start saving for their golden years immediately upon entry into the workforce. But, we all know it’s not a perfect world. And yes, sometimes getting started on savings a bit later in life is unavoidable.
The Federal Reserve reported in 2018 that though 45% of nonretired adults claimed their retirement savings were right on track, a whopping 25% admitted to having no savings whatsoever. The numbers are truly troubling but, if you’ve crossed the big 5-0 and are still a ways from building that golden years stash, hang in there. Though it might be difficult, you can still accumulate some wealth before it’s time to bid adieu to the workforce.
Here’s some expert advice on how you can save up quickly in the next decade or two:
1. Save, Save, Save
It goes without saying that now’s the time to free up whatever cash you can spare and add it to your retirement savings. If you have a debt to return, pay it up asap so you can focus solely on saving. Set up automatic savings so that you don’t “accidentally” forget to save a particular month because from now on, EVERY LITTLE BIT OF INCOME MATTERS. Take a look at your budget and refine it. What are the things that you can do without? The subscription you haven’t used in months? Cancel it. That expensive wine you feel guilty drink? Leave it out of the grocery list.
2. Max Out Your Contributions
Your biggest savior at this point is your retirement plan. If your employer is offering one, contribute enough to get a maximum match from them. Workers aged 50 or above can contribute up to $26,000, so that’s a bonus you can now benefit from. You can also inquire whether your employer offers additional retirement savings plans.
3. Keep the Money Coming
We’ve established that making those dollars is your biggest priority now. So, to increase the income, you can opt for a side gig or something. If working additional part-time hours doesn’t sound doable, look around for things you can let go of.
Some people opt for downsizing their homes as well. Assuming your kids have moved out, you don’t need as much space as you used to. And you can gain significant cash by selling your home and moving into a smaller one. Additionally, try not to retire too early. Gone are the days when people retired latest at 65.
The thought of retirement is as overwhelming as it is exciting. The best you can do is prepare as best you can to make sure you’re comfortable in your golden years.
