According to the National Institute on Retirement Security, approximately one-third of 55- to 64-year-old Americans have no savings for their retirement. If you’re one of the many 60-year-olds staring at retirement with little or no savings, it’s not too late, and you have options.
Adjust Your Retirement Plans
One way to extend your deadline to save, and to have a more meaningful retirement, is to prolong the period of time that you work so that you need less savings. This will also let you delay taking Social Security. If you aren’t earning enough to save at your current job, consider leveraging your skills as a consultant, where your experience can be valuable to companies that need a more mature eye to help them grow, or by taking a part time job just for the purposes of saving for retirement.
Slash Debts and Expenses
There are two ways to prepare for retirement, and they go hand-in-hand. Part one is to save money that you will rely upon during retirement. Part two is to reduce your expenses so that you require less money. Take the time to review your monthly expenses and understand your personal budget. Review your account statements to see which of your debts have high balances or high interest rates and work to pay those off before you leave the workforce.
Max Out Retirement Savings
Just because you’re 60 doesn’t mean that you can’t save for retirement. Once you turn 50, the Internal Revenue Service even lets you put extra money in your 401(k) and individual retirement accounts every year to help you catch up. You can also fund a traditional IRA until you’re 70.5 years old. Since your income may go down in retirement, you can take advantage of these tax-deferred accounts with your money from work. If you can get an employer match, it’s even more valuable.
One important thing to understand is that you have many options when it comes to planning your retirement. With a little planning and plenty of saving, you can reach your retirement goals at 60, 70 or 100!
About the Author
Solomon Poretsky has been a writer since 1996, with experience in the fields of financial services, real estate and technology. Poretsky holds a Bachelor of Arts in political science from Columbia University.
This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
Published by permission from ConsumerInfo.com, Inc., an Experian company. © 2014 ConsumerInfo.com, Inc. All rights reserved.