Possibilities for retirement savings strategies for late starters are still possible, no matter when you start. There are still things that you can do to cushion your retirement years. Being in this situation without sufficient savings, could be because you were a big spender in the day, or maybe you had setbacks where it just did not work out. With the economy the way it is, many people lack confidence that they can still have retirement savings.
According to the Employee Benefit Research Institute, you’re not alone when it comes to how many have not planned for their retirements. Fifty eight percent of Americans, age 55 or older, do not have enough money to live comfortably in the retirement phase of their lives. It is a sad situation after working hard all of your life, when it’s time to retire and you cannot do it comfortably because you never made plans for retirement savings. Whatever the reasons, start now on some of these strategies, because it’s really never too late!
First you must focus on forward progress. Don’t kick yourself for putting off planning for your retirement savings before, as this will not accomplish anything except discourage you. So making a plan and sticking to it now, is what is important. Figure out what it would take for you to live in your golden years comfortably. Make that your goal. Having a goal makes it easier for you to stay on track.
Now, you have to eliminate your consumer debt. The best way to do this is to pay off the highest interest balances you have first. Next, use the freed up monies to pay off the remaining cards. You should never pay just the minimum on these as it becomes a financial suicide.
Start an automatic withdrawal plan for savings. This way it will be automatically deducted from your account and you won’t miss the money. It will be great knowing you are getting on the right track and beginning to have a savings for retirement.
As with every job, people tend to get salary increases over time. This money should be banked. Do not increase your spending, by thinking because you got a raise you can afford too. This can actually get you into trouble. By taking this raise and putting into savings you will never miss it.
Try to eliminate those nasty habits of spending money on unnecessary items. Figuring how much money you can spend on those daily cappuccinos, adds up to a very hefty price tag. Break your habit and maybe cut down to only one a week and make your coffee from home the rest of the week. Be creative with your spending habits and you will reap the rewards when it comes time to retiring.
Another thing you can do is to downsize. This may seem like a pain, but realistically do you need a three-bedroom place when there are just the two of you now? Could this help to save you money? Are there items in your attic that you could sell and make money from? These are all things to consider when thinking of retirement savings.
Remember it really is not too late to start saving. Retirement strategies are well worth looking into and starting a plan for your retirement savings is very beneficial. A small amount of savings can add up over time. Aren’t you worth being able to retire comfortably, after all you did work hard all your life? Plan some type of retirement savings before you have nothing to rely on when it’s your turn to retire.