Sick of the rat race and 9-5? Are you ready to retire as a 50-something? Click here to learn the best way to save for retirement in your 50s and retire younger.
Keyword(s): best way to save for retirement in your 50s
Roughly 78 percent of Americans have almost nothing saved for retirement.
Are you only starting to think about saving for retirement in your fifties?
You should know that it’s never too late. But, it’s going to be an uphill struggle from here.
You need to follow our tips below for the best way to save for retirement in your 50s. Let’s go!
1. Get Over the Past
Remember what Rafiki says in the Lion King?
He hits Simba over the head. Simba asks “what was that for?” Rafiki responds with, “It doesn’t matter it’s in the past.”
Sure, it’s better to start in your twenties to save for retirement. But, you need to get over this quick if you’re going to retire early.
It’s better to start preparing for retirement now, than waiting until you’re pushing sixty.
2. Avoid Calculations
You don’t need to concentrate too much on calculating how much you need to save before you can finish work.
You know you’re behind on your savings. If you focus too much the numbers, you could leave yourself demotivated.
Just start cutting your expenses immediately and putting money into investments and savings accounts.
3. Start Investing
You need to discover how to catch-up. You can’t just keep your money in a savings account without investing at the same time. You’ve got to take some risks to get a greater return.
Check whether you can take advantage of the retirement plans which made available by your employer. But, you also need to learn about how to invest your money wisely.
You may also need to make some lifestyle choices. If you’re currently living in your biggest asset, then you may need to consider downsizing.
4. Make a Retirement Plan
Now you’re in your 50s, you may have to reconsider your retirement plans.
Only 2 percent of Americans are able to retire by the age of 55. So, it’s perfectly normal to continue working after 55 to work, save money and invest it wisely.
Remember there are also benefits to working until you’re in your late-60s. For starters, your ability to continue to pay into your sponsored retirement plan.
There are also health benefits. According to one study, working a further year past retirement age is connected with up to an 11 percent lower risk of early death.
5. Increase Your Income
It may be easy to say you want to increase your income. But, are you prepared to put in the work to achieve it?
You may need to ask for a pay rise at work. You can always request a bonus if you achieve your targets. Or, take any opportunity to work over time.
Take steps to diversify your income too. You could consider a side-hustle which generates income without much effort or time.
This could include everything from renting out a room in your home or writing an e-book to make extra cash.
Best Way to Save for Retirement in Your 50s?
Now you know the best way to save for retirement in your 50s. You need to cut your expenses dramatically.
You don’t have time on your side. You can’t afford to put away a little each month. You need to take action now to invest your money to secure your future.
Do you want to learn more about how you can invest your money for retirement? Check out our services here.
