If you’re over 50 years old and you have less than $100k saved for retirement, you may have a problem. But there’s no need to panic.
Planning and saving up for retirement is no easy task. After all, it’s difficult to know how much you’ll need each year to retire comfortably– especially with the effects of inflation – and it can be equally tricky to determine what you’re monthly income will be.
However, if you’re over the age of 50 and have less than $100k of savings for retirement, it’s strongly advisable to start saving more to give yourself a better standard of living in your twilight years.
If you’re looking for advice on how to save more money for your retirement, read on to discover our four top tips.
Consider Delaying Retirement
Most of us don’t like the idea of having to delay our retirement, but if you’re approaching your planned retirement date and you’ve only saved $100k, we suggest you consider it. It can be a great way to improve your financial situation once you stop working. This is because you have a couple of extra years to save money and your retirement savings will be needed for a shorter period of time.
Even just delaying retirement by two or three years can have a fairly significant positive impact on your finances, so it’s well worth considering.
Given all these benefits, it’s unsurprising that more and more people in the US are postponing retirement and staying in work for longer. Specifically, some 52 percent of Americans plan to work beyond 65, while some even plan to never retire at all.
Think About Cutting Costs
The adage “a penny saved is a penny earned” is especially true when it comes to retirement planning. The sooner you start cutting costs, the better, as over time you can potentially save tens of thousands of dollars which can instead go towards funding your retirement.
Cutting costs is rarely a straightforward task, particularly if you already live frugally, but most households should be able to find some areas where they can cut their expenses.
A great place to start, because most people overpay, is your cable and internet service.
Evaluate How Much Social Security Support You’ll Receive
The majority of retirees are entitled to some level of Social Security support, so you won’t have to entirely rely on your own savings to fund your retirement.
However, it should be stressed that Social Security payments are designed to help Americans get through retirement rather than be their sole source of income, so it remains important to build up your own retirement fund.
There are many factors, such as when you decide to retire, which determine how much money you’re eligible to receive in Social Security, and it’s a good idea to spend some time to figure out how much support you will realistically receive.
Consider Selling Assets That Are Not Generating Cash For You
If your savings are under $100k and you’re just a few years away from retirement, it can be a good idea to sell off some of your non-essential, non-returns generating assets, such as a car, a boat or a piece of valuable jewelry.
This can be a great way to free up some extra cash which can potentially go a long way in helping you get through retirement.
A Quick Summary
- Many Americans struggle to plan and save up for retirement – and many of us are in for a nasty surprise once the time finally comes.
- The good news is that even if you’ve only saved $100k so far, there are several things you can do to start saving more for retirement to improve your financial situation in your twilight years.
- For example, delaying retirement by just a few years can significantly improve your financial situation, as you have more time to save money and fewer years to spend your retirement fund.
- Selling off non-essential assets and investing the proceeds (in an annuity, for example) can be another great way to improve your financial situation as you approach retirement.