Start Saving for Retirement Today
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.
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.
- 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.
- Consider relocating to a more retirement-friendly city. It’s no secret that some cities are much more affordable for retirees than others.
- 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.
- 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.
- 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 the time to determine the options and opportunities available to you and start planning the next phase of your life today.