Better Late Than Never: How to Save for Retirement After 50
21 Dec 2018
It’s never too late to start saving. Discover how a financial planner can help you learn how to save for retirement, even if you’re starting late.
It’s a sad fact that most Americans have not saved nearly enough for retirement. In fact, less than 20% of us are saving the recommended amount out of every paycheck.
When you’re young, this makes a lot of sense. You’re closer to being born than you are to being retired, so you tell yourself you still have plenty of time. But what if you’re 50 or older? Does anybody know how to save for retirement when retirement is that close? There are a few ways that may work, and we’ll tell you more about them in the paragraphs below.
1. Save as You Go
There are a lot of little mistakes that prevent people from investing in their future, and one of them is prioritizing. Having your priorities straight is a great virtue, but a lot of people assume that you can’t multitask.
If the project you’re doing takes a little longer because you’re stashing away some money here and there, then so be it. Saving as you go means that you don’t have to rush what you’re doing as much because there’s one less thing to rush towards.
2. Decide on a Retirement Age
Knowing how to save for retirement is easier when you have a deadline. In the United States, it’s tradition to retire at 65, but that number is not set in stone. There are plenty of people who decide to retire a little earlier or later than usual.
Spending a little more time working gives you more opportunities to save money for retirement. Working more doesn’t necessarily mean that you have to keep doing the same boring job. You can always find a more fulfilling job that you’ll enjoy.
3. Use Other Methods
In addition to working, there are other kinds of investments that can help you earn and save money. One possible method is an IRA. After the age of 50, the amount you can contribute to an IRA at any given time increases.
This is the same with a 401k and other related programs. Those closer to retirement age can put more into it, and therefore the interest rises faster. You could also just put your money into a savings account or invest in the stock market. The money still accrues, but it’s easier to access in case you need it.
The stock market is a riskier option, but it can also be more rewarding than the other methods. It all boils down to how confident you are that you’ll get a return on your investment.
How to Save for Retirement
People of all ages struggle with questions about how to save for retirement. The good news is that even if you’re close to retirement age, there are several ways to save up and be better prepared. You could save money whenever you have extra. You could retire later or even invest more in your 401k and IRA.
If you want to know more about finances and how to manage them, please visit our site. We can help you figure out how much you should save for retirement. We can also help you choose the best financial planner.