Is It Ever Too Late to Save for Retirement?
Can I ever retire?
How am I going to be able to afford retirement?
Two questions that may be running through your mind -- especially if you're nearing retirement age. LeBron and the Cleveland Cavs didn't lose hope in the NBA finals from what has never been done before with such a deficit. So, neither should you.
Okay, maybe you're not LeBron, but your dreams matter. And you should never give up. According to a recent survey, 54% of workers report that their total retirement nest egg is less than $25,000. 26% have less than $1,000 saved for retirement.
Keeping up with the Jone's isn't exactly working out.
With the average numbers of years in retirement being 20, you can see the problem. However, it's game time again. You may be down, but you're not out. It’s never too late to save. It’s important not to dwell on the past, and instead, focus on the future.
So what should you do to improve your financial life?
Glad you asked!
Reduce spending on discretionary expenses
You don't have to stop going to Starbucks forever -- we all have our cravings. No one can make me take out my weekly trip to Mcdonalds for a Big Mac Meal -- don't judge. But I have realized, the huge impact it's had financially by cutting back a little bit.
Begin tracking and examining your spending. Look for ways that you can reduce those expenses. Cutting back may reduce your goal -- but making these small changes may put your goals within reach. Take it month to month and try not to overwhelm yourself. Look at ways to cut out or reduce expenses. Monthly lawn care services or cable bills are a good place to start.
Pump Up Your Retirement Savings
It's all about the inches.
Fact, the 401(k) contribution limit in 2016 is 18,000. And if you're over the age of 50 you can contribute an additional $6,000 -- the catch-up contribution limit. It's not an all or nothing deal. Increase your savings systematically.
Reexamine your Retirement Goals
When will it be time to retire?
How long do I expect to be retired?
Will I have any big purchases during retirement? Such as a boat or a vacation home?
How much money on a monthly basis will I need to live a comfortable retirement?
If you are a late saver like many Americans, you may have to adjust these goals accordingly. Delaying your retirement a few years to build up a bigger cash reserve and even working part time during retirement can help supplement the quality of your retirement.