Saving for Retirement at 60

Are you sixty years old?  If you are, you may be preparing for retirement.  As excited as you may be about no longer have to work, can you really afford the transition?  If you haven’t been preparing for retirement, it isn’t too late to get started, but you need to get started now.

The first thing you will want to do is start contributing to your retirement plan.  At this point in your life, any contributions that you can make, you should.  At the very least, contribute 5% of your income.  However, know that many employers will match contributions made by their employees.  There is a minimum amount that you must contribute to receive this matching.  If you do, you can essentially get free money for your retirement.

Next, you will want to examine your retirement wants and needs.  Typically, this is the first step that you take.  However, if you haven’t been saving for retirement, it is imperative that you get started soon.  Depositing any extra money that you have right from the start can help you get ahead in your goal to save for retirement.

Returning back to your retirement needs, examine your housing.  Is your house costly to maintain?  If it is and if there isn’t much sentimental value attached to your home, consider relocating to a more affordable housing option.  In fact, you may want to closely examine retirement communities.  Most are affordable to live in and you are automatically paired with neighbors that are your age, many of which will share your interests.

It is also important to examine your retirement wants.  What do you see yourself doing when you retire?  If you are like most retirees, you will likely want to do things other than stay at home watching television.  Do you want to travel?  Do you want to start your own business?  Are there other activities that you want to enjoy, such as camping, boating, or fishing?  If so, it is important to examine these costs and add them to the estimated amount of money you need to save to retire comfortably.

Next, it is important to learn to cut corners.  Do you live on a fixed income?  If not, it is time for you to start. When in retirement, most men and women are on a fixed income.  For example, if you were to spend your retirement savings before you pass away, you are essentially left with nothing.  Is this really how you want to live?  It is important to practice living on a fixed income.  If you find that you cannot do so, you have a small amount of time left to increase your retirement savings by working longer.

Now is also the time to examine your debt.  Do you have any?  To see, request a copy of your credit report.  Usually, the companies that you owe money to will try to collect.  This may involve a request to appear in small claims court.  Should this happen to you, you may be court ordered to pay the money.  This can put a damper on your retirement savings and plans.  Eliminating this from happening by making sure that all your debts are paid off before you retire.

One question that many individuals in their sixties have involves paying off that debt.  Many wonder how they can pay off their debt when they are also supposed to be saving for retirement.  The two actually go hand-in-hand.  When you pay off your debt, you should have more money for retirement in the long-run.  Also, you can work to save money by eliminating unnecessary purchases or temporarily supplementing your income with a second, part-time job.  A good approach to take is dividing the money into two.  Some money can go towards your unpaid debt and the rest can go into a retirement account.

Saving for Retirement at 50

Are you fifty years of age?  If so, are you prepared for retirement?  For many, retirement is just around the corner, about at the age of sixty.  While some individuals will find themselves in good financial standing, many more see just how unprepared for retirement they are.

If you are unprepared for retirement, there is good news.  That good news is that it isn’t too late to start saving.  If you just turned fifty, you likely have a little bit more than ten years to save.  While it won’t be as easy as it was when you were twenty, thirty, or forty, it is still possible.

The first step in planning for retirement at the age of fifty is determining how much money you need to save.  On average, financial experts state that most individuals need at least 70% of their current income to financially survive through retirement.  A small percentage of that, around 30% to 40%, may come from social security benefits.  It is also stated that you should prepare to spend thirty years in retirement.  

If you have been contributing to a 401(k) plan at work, you are a step ahead.  You likely have a few thousand dollars or more saved.  You will want to keep on contributing.  Be sure to meet the requirements that your company has for matching.  When you do so, your company will match the contributions that you made.  This money can go a long way, especially if you are finding yourself unprepared for retirement.

If you are employed, it is also important to examine pension plans.  Pension plans are advised for long-term employees.  Now is the best time to get one, as you are less likely to leave your job.  There are some companies that have rules and restrictions, such as you lose your pension if you switch jobs.  

It is also important to examine Retirement plans such as the IRA in the US or the RRSP in Canada.  Do you already have one?  If not, now is the time to start.  Both give you numerous tax benefits and they are a much better approach than traditional savings accounts.  Why?  Because many individuals find it easier to dip into their savings accounts and spend their money.  Whether you use that money for yourself or give it to family members, it reduces the amount of money that you have for retirement.  It is also important to note that the rules for both as you hit 50.

As previously stated, most individuals will receive social security benefits that account for about 30 to 40% of income needed during retirement.  This is, however, just an average figure.  You can request a statement that outlines your benefits.  This statement can give you an idea of how much in social security benefits you will receive overtime.  With that said, this is also just an estimate; therefore, it is not a figure that you should rely heavily upon.

Now it also the time to start living on a fixed income.  There are two benefits to doing so.  When in retirement, you will be on a fixed income. You will run into trouble if your money runs out too soon.  Starting to live on a fixed income now can give you practice for when you truly do depend on it.  Also, when living on a fixed income, you are able to reduce your expenses.  Any money that you save can be put towards your retirement.

If worse comes to worse and you are truly worried about retirement, now is the time to supplement your income.  A second job may be the last thing you want or need, but it may help you considerably.  If you do opt for a second part-time job, place any money that you make into a retirement account, whether it be a Retirement Account or a savings account.  Working a second job when you are fifty is much better than doing so when you are sixty.

Saving for Retirement at 40

Are you in your forties?  If you are, retirement may be something that you occasionally think about.  After all, you have been in the workforce long enough to wish you could get out of it.  With the right retirement plan, you may be able to do so a little bit sooner than originally planned.

Of course, retiring a year or two early sounds nice, but it isn’t as easy as you may have thought.  The good news is that you are at the right time in your life.  The amount of money that you are able to save and put towards retirement in your forties can have a significant impact on when you are able to retire.  

If you have been putting aside a little bit of money in a Retirement Account or if you have been contributing to your RRSP or your 401(k), there is a good chance that you sat down and set retirement goals for yourself.  This may include where you want to live and what activities you want to enjoy.  Since your goals may have since changed, they should be reexamined.  This is important in the event of a cost increase.  If the costs of your retirement goals have increased, you need to work on saving more money.

It is also important to look at your spending. If you are a parent, now may be the time when your children are getting ready for college.  Are you footing the college bills?  If you wish to do so, first make sure that you can.  As important as it is for your children to get an education, do not go into debt and do not dip into your retirement savings to pay for that education.  Instead, examine other avenues of financing, which may include student loans for your children, scholarships, and grants.

If you have any debt, now is the time to get it paid off.  Request a copy of your credit report.  If any bills are marked as unpaid, work on getting them paid off.  You cannot comfortably and securely retire if you are suffering from debt.  The average consumer debt can be quite high. If yours is high, you may need to spend five to ten years paying it.  That is why you should start now.  

As it was previously stated, most individuals start contributing to their 401(k) plans or open a Retirement Account in their late twenties or thirties.  If this is a step that you have yet to take, do so.  The sooner, the better.  On average, experts recommend contributing at least 5% of your income to be put in a 401(k) or a Retirement Account.  With that said, if you are just getting started now, at least 10% of your income should be contributed.  

Now is also the time to look at how retirement works.  For example, most financial advisors state you will need at least 70% of your income to comfortably retire.  Do you have this money?  Can you reasonably come up with it?  If not, now is the time to take further action.  You do not want to rely on social security payments, as they are only able to provide most retirees with an average of 40% of needed income.  

To make it so that you are able to relax and enjoy life in retirement, as opposed to working through it, it is a wise idea to start cutting corners now.  Are there any unnecessary purchases that you can eliminate to help you save money?  Can you reduce the packages for your television, internet, or cable?  Are there ways for you to reduce your car insurance payments?  If so, do so.  Any money that you save can be put into a checking account or deposited into your IRA.

The above-mentioned steps are just a few of the many that you, a person around the age of forty, can take to prepare for retirement.  Remember, each year that passes by is one less year for you to save money for your retirement.  Don’t be left out in the cold or be unable to enjoy your favorite activities later on in life because you didn’t start planning for retirement when you should of.

Saving for Retirement at 30

Yesterday I wrote about how it is never too early to plan for your retirement, today and for the next couple of days, I will look at what you could do if you are younger. I wished I had received and listened to this type of advice when I was young. 

Are you in your thirties?  If you are, retirement may be something that you occasionally think about.  If not, now is the time to start.  While there are a number of benefits to saving for your retirement years when you are in your twenties, it is imperative that you start in your thirties.  If not, you may find yourself with little or no money to retire with.

One of the easiest ways to set aside money for your retirement years is by saving money. Take any bit of money that you are able to save, by eliminating unnecessary purchases, and put it away.  To save the most money, examine your spending habits.  Buying an expensive pair of jeans is a nice pick-me-up when you were twenty, but now is the time to start worrying about your future.  Remember, apply any money saved to your retirement future.

As for what you should do with your saved money, you do have a number of different options.  One of the easiest approaches to take is to open a savings account.  Often times, all you need is $50 to do so and your account should be fee-free, as long as you maintain the minimum monthly balance.  As easy as it is to open a savings account, only do so if you are good with money.  You will want deposit money into your savings account and forget all about it.  If you have a passbook, hide it.  Ignoring your savings account, aside from putting money into it, is the best way to leave it untouched.  Unfortunately, with a savings account, it is much easier to get a hold of your money and you can do so without any immediate consequences.

As nice as savings account is, there are many other profitable and convenient approaches for you to take.  These include an RRSP plan in Canada and a 401K plan in the United States.  If you are employed and full-time, you should be able to contribute to either plan.  Have you already been doing so?  If not, it is recommended that you start.  Those in their twenties are encouraged to deposit at least 5% of their income into a plan.  The same percentage is recommended for those in their thirties, as long as contributions were previously made.  If this is the first year that you contribute then, 7% to 10% is recommended.  401(k)s are nice because they offer tax savings and many employers will match contributions.

As previously stated, now is the time for you to start saving money.  Eliminating unnecessary purchases and carefully tracking your spending is a great way to reduce your living expenses and save additional money for retirement.  Before you put all of that money into a savings account or a Retirement Account, examine your debt.  Do you have any?  Retirement and debt do not mix, so take steps to rid yourself of debt and start doing so now.  The best step to take is to reduce your expenses, which was outlined above and split the money saved from a retirement savings account and your unpaid debt.

Now is also about the time that you should start thinking about what you want your retirement to be like.  Many people think this is a step that is too early for someone in their thirties to take, but there is no harm in planning ahead.  Where do you see yourself when you retire?  What kind of home would you like to live in?  Do you intend to travel?  What activities do you want to enjoy?  These questions can help you determine how much money you need to retire.  Of course, you can still continue to save money for retirement even if you don’t know the answers to these questions, but a goal can help make sure you are able to retire comfortably and with ease.

The above-mentioned steps are just a few of the many that you, a person around the age of thirty, can take to prepare for retirement.  They are, however, the easiest steps to take.