You didn’t start saving early enough for retirement? Not a problem. You can circumvent such a situation by putting in place and making use of strategies to help you save enough and be prepared for retirement. There’s no need to panic. Recognizing your mistake is an honest stand and one that firms you to effectively utilize these retirement savings strategies for late starters.
Enough time has been wasted and it’s better to start saving now. And in doing that, you should also consider saving more than 10%. Don’t be satisfied by the fact that other people or almost everybody preparing for retirement saves 10% of their income. Because you’re a later starter, be different.
Much time has already been wasted? Start saving now.
Lifestyle changes to help
Does saving more than 10% (say between 20 and 40%) of your income seem far-fetched and unrealistic? Come’ on, nothing is impossible. Just get to work and knock of the “im” to make it “possible.” How to do that?
Consider making lifestyle changes in respect of your finances. Identify things that you truly need and avoid spending money on those you buy only because you have the money to spend on them. If you’re somebody like me, you can also consider selling your car and going in for a less-expensive one. You’ll retire anyway and will be using it less.
Pay off debts as soon as possible
A truly healthy financial life is devoid of debts and the same goes for retirement plans. You’ve not started saving early enough and you’re now trying to make up for that, right?
It’ll be smart to pay off debts that will be costing you interests to limit your saving ability.
Other income earning opportunities
Of course it’s necessary to go in for other income earning opportunities besides your day job to be able to save more for your retirement, but why not consider jobs you can still do when you actually retire?
There part-time jobs perfect for retirees and other income earning opportunities to go in for as a way to earn more and increase savings.
Finally, the big one
If you’re late starter in saving for retirement, it’s necessary to delay your retirement as long as possible. How long you delay your retirement is factored into calculating your social security benefits.
It’s hence smart and financially savvy to consider delaying your retirement, most especially when you’re a late starter in saving for retirement.