Retirement can sneak up on you. At one time, it seemed like a lifetime away, now it may be just around the corner. A 2020 TD Ameritrade report shows that 53% of Americans between the ages of 50-59 have less than $99,000 saved for retirement. But there is no need to panic yet. There are many things you can do starting today that will help boost your retirement savings. Here are just a few:
1. Do an inventory of your spending and see what can be eliminated or reduced.
2. Put off your retirement. Putting your retirement off by five or even ten years can give you additional time to bolster your retirement savings.
3. Goes with point two but delaying receiving social security benefits till age 70. This can bolster your yearly income by 8% each year after Full Retirement Age (FRA).
4. Take advantage of increased contribution levels. When you hit 50, you can put an additional $6,000 annually in 401(k) plans a year. If you are at a place where your income level allows this, be sure to take advantage of this increase. For those with a traditional or Roth IRA, you are entitled to increase contributions by $1,000 annually when you turn 50.
5. Get rid of credit card debt. You should only use your credit card if you know you can pay the bill in full each month, or for an emergency.
6. Consider a job after your job. Many retirees look forward to the day they can stop working, only to find themselves lost when they finally retire. To that end, many retirees are beginning a new career in retirement, expanding a hobby into a business, or simply getting paid to do something they love, rather than something to pay the bills.
Even if you plan on working past retirement age, increasing your nest egg will increase the options and opportunities available to you when you do retire. It is never too late, so start saving today!
Why choose Argent Advisors in Monroe?
Our mission is to help establish, manage, and protect our clients' financial plans, and we take that very seriously. No matter where one&rsquos objectives fall, we help our clients establish a definitive goal-oriented plan for current needs and for the future. Argent Advisors in Monroe is a fee-based Registered Investment Advisor firm. We agree on an annual management fee, and then we work for YOU. We do not make money on account activity or have proprietary products. Our independent process assures you that we are acting in your best interest, not in ours! If you have any question about your financial planning needs, please contact our office.