Over 50 And Haven’t Saved For Retirement Yet? Is There Still Time?
It is best for you to start saving for retirement while you are in your 20s. However, if you have made it all the way to the age of 50 and have not saved any money, then it is not too late to start saving. There are several things that you can do if you have not saved for retirement and are age 50 or older.
Determine How Much You Will Need
Before you start saving, you will need to determine exactly how much you will need. Experts recommend having at least $1,000,000 in your account for retirement. However, the cost of living in your area and the type of lifestyle that you want will determine how much you need to save for retirement. You can use a retirement calculator to determine exactly how much you need.
Start Saving Money Right Now
The best thing that you can do is to start saving money now. Even if you cannot afford to put away a lot of money, any amount that you save will be beneficial. If you work for a company that offers a 401K plan, then you should try to save enough to get a matching contribution.
You should put any extra money that you get towards saving for retirement. For example, if you receive a bonus check from work or a cash gift, then you should put it in your retirement savings account.
Make Plans to Work Longer
If you are age 50 and do not have anything saved for retirement, then you will probably have to work longer. For example, if you were planning to retire in five years, then you will probably have to work at least 10 to 15 more years. Keep in mind that you do not necessarily have to keep the same job that you have now. You want to make sure that you enjoy whatever job you have.
In order for you to be able to save as much money as possible, you will have to cut your living expenses. There are several things that you can do to trim your expenses. You may want to move to a smaller place. You can also trade in your car in and get something much cheaper.
If you have memberships that you are not paying for, then you should get rid of them. Additionally, you should eat out less and cook at home more.
Pay Down Your Debt
If you have any debt, then it is a good idea to start paying it down. It will be a lot easier for you to save if you do not have any debt. There are several ways that you can pay off debt. You can start with the smallest or largest debt. You can also pay off the debt with the highest interest rate first. The way that you pay off your debt does not matter.
Furthermore, you may want to consolidate your debt in order to make it easier to pay off. You will only have to make only monthly payment. You will also be able to save a lot of money in interest.
Make Sure That You Have Sufficient Insurance
An unexpected event can make it difficult for you to save for the future. Unexpected events are also the main reason that many people end up filing for bankruptcy. That is why it is important to make sure that you have sufficient insurance.
You will need to have health insurance, car insurance and life insurance. Talk to a financial planner if you are unsure about what type of insurance you need to have.