Top Ways to Recover From a Late Start on Retirement Planning

1. Start Saving 10 to 20% (or More!) of Your Income

If you want to catch up from years of of no retirement saving, it’s going to require real discipline and some major lifestyle adjustments. If you make a diligent, strategic effort to save, you might be able to achieve a pretty decent nest egg in the waning years of your career. An expert financial advisor can help you create a retirement portfolio that makes the most sense for your unique situation.

2. Take Advantage of Retirement Accounts and Catch-Up Contributions

Retirement accounts offer many great tax benefits and opportunities for saving. For example, you’ll want to do most of your saving in an employer-sponsored plan like a 401(k), which, aside from its tax advantages, has generous contribution limits ($18,500 this year, plus a $6,000 catch-up contribution for people 50 and older).

3. Work As Long as Possible

Consider working longer as your finances will benefit in the long-run. You will save more money for your retirement nest egg, not to mention you will get more money from your Social Security if you wait to retire as your payouts are based on your highest years of earning. For example, while you are eligible to claim benefits as early as age 62, your monthly check could be nearly twice as much if you wait until you’re age 70.

4. Be Resourceful and Enlist Help

Depending on how far behind you’ve fallen in your retirement planning efforts, you may not realistically be able to save enough or put in enough extra years in your job to make up for lost time. Which means you need to be open to other ways to enhance your retirement security.



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