If you’re in your 50s, the time for retirement savings was long ago. Many people start saving for retirement as early as their 20s so they have tons of money available for when they really need it down the road. However, there are still people out there who never really saved for retirement, and it’s a scary realization! But there is hope.
According to the Casper Star Tribute, “Retirement costs the average American $46,000 a year, but you might need more or less money depending on your expenses and the lifestyle you want to uphold.” Here are the 3 best tips to being able to live comfortably during retirement if you haven’t started saving.
1. Don’t panic about it – breathe
Instead of panicking and resorting to living retirement in a box, make changes that will suit your lifestyle needs during retirement and also free up cash to put away for your future. Downsize your living space, become a one-car family instead of a two-car, or cut back on shopping or going out to eat too much. It really pays off!
According to the Casper Star Tribune, “If you’re able to free up $500 a month over the next 15 years to save, and your investments generate an average annual 7% return, you’ll accumulate about $150,000.”
2. Get a part-time job or side gig
If you find that cutting back on your spending is making life less fun and exhausting, consider a side gig on top of your primary job. There are also tons of remote jobs available online you can do at home as a freelancer on your own time to earn some extra cash.
Many people already do this in an effort to build their savings and put money away. Adding onto the additional math provided before, saving $1,000 a month for 15 years with an average annual 7% return rate, you’ll have a bit over $300,000 now saved for retirement. Looking better already!
3. Plan to work a bit longer
Unfortunately, early retirement is out of the question. Planning to work in your current job for a longer period of time will help you save more for retirement in the long run. This can be a great thing in other ways well, such as delaying your Social Security benefits past the retirement age. This will boost your benefits by 8% a year until age 70.
So, let’s do the math now. If you’re saving $1,000 a month, this time for 20 years instead of 15, you suddenly rack up $500,000 by retirement with the assumed 7% return. Nice, right?
Be sure to SHARE these tips with your friends and family who are thinking about retirement!