Many financial experts will tell you that the best time to start planning for retirement is in your late 20s or early 30s. When you are young, it is easier to generate more income, save more, and invest more for the future. Unfortunately, doing some retirement planning is seldom a priority for those in their 30s.
If you are in your 50s and you don’t have a solid retirement plan in place, you are not alone. According to multiple surveys, less than 20% of people in their 50s said that they have a good retirement plan. Fortunately, it is never too late to start. While you may not be able to generate income quickly, there are still many things you can do to boost your retirement savings.
1. Cut Unnecessary Expenses
The first thing you want to do is make sure that you are not spending your money on unnecessary things. Old subscriptions you no longer use, the daily cup of coffee you buy on your way to work, or your habit of picking up new tools you never use (or books you never end up reading) need to go.
There is no amount too small to save. Cost-cutting measures are great for reducing your expenses drastically. You don’t have to sacrifice comfort; reduce some spending so you can save more for retirement.
2. Leverage Offers
When you are in your 50s or older, there are actually more ways to earn discounts and special offers. Joining AARP is a great way to get started since the organization partners with large companies in delivering a lot of special offers.
You can, for instance, save on car insurance by getting AARP car insurance quotes. The best AARP car insurance quote lets you save on your car insurance without reducing the coverage you enjoy. There are AARP deals on other forms of insurance, too (i.e., homeowner insurance), and they are worth pursuing or even bundling with your car insurance for additional discounts.
3. Remain Active
You don’t have to retire early if you don’t want to. Many who retire find themselves frustrated due to a lack of things to do. If you have spent years working hard and keeping busy, staying productive for longer may be a good idea.
Working longer means earning more income that you can allocate towards your retirement. Combined with managing your expenses better and investing bonuses or other surprise income you receive along the way, you can get to that dream retirement sooner than you think.
Last, but certainly not least, start developing an investment portfolio that suits you. You don’t have to be all aggressive with how you invest your money. In fact, you shouldn’t. Contributing more to your IRA, for example, lets you earn more and gain tax advantages as well.
When you are in your 50s, you can contribute more to programs like your IRA and 401k. Some investment opportunities also pay tax-advantaged returns when you are in your 50s. Be sure to take advantage of all of these opportunities to boost your retirement savings quickly.
That’s it! While planning and saving for retirement is more challenging as you get older, it is never too late to start. There are a lot of things that you can do to make sure that you have enough to enjoy a comfortable retirement.