Late Start to Retirement Savings
Everyone knows the time to start saving for retirement is when you are young, but very few actually do. In fact, for those over the age of 40, a recent survey shows that their biggest regret regarding retirement is not starting to save early enough.
What about those who have not saved at all? They make up around 25% of the U.S. population, and they are not necessarily the youngest among us. These days, the average balance in a typical 50-year-old’s retirement savings account is a measly $43,797 – despite the fact that many baby boomers believe that they need approximately $800,000 in order to retire.
If you are a young boomer with no retirement savings to speak of, don’t despair. Better to begin late than not at all, and there are a few advantages to being 50 that can help you catch up a bit. Here are a few tips to help you get started.
Come up with a plan to manage your finances Educating yourself about financial issues is an absolute must for retirement planning, and a major reason many people can’t save is because they simply don’t understand how to manage money. According to the National Foundation for Credit Counseling, the primary reason clients sought their help was not due to a lack of income, but problems managing debt, and maintaining a budget.
Be prepared to cut back in order to save more A recent Merrill Edge survey found that, although 61% of upscale baby boomers are worried about not having enough money to last through their retirement, very few are willing to sacrifice on expenses like dining out, entertainment or vacations in order to save more.
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