Haven’t Started Saving for Retirement? It’s Never Too Late!

When you’re young and just starting out in a career, it’s not common to think about retirement. Most young people don’t give it any thought. As the years pass and you’ve grown older, it can seem like it’s gone by in a blink and before you know it, you haven’t thought about retirement or starting saving for it.

When you come to the realization that you need to do something about planning your retirement, it’s never too late to begin. Taking steps to improve your financial health by making smart decisions can improve your chances of financial security for the future.

If you have started a retirement fund at some point, one way to ensure that you save money towards your retirement goals is to automate contributions into that fund. This can be done through your bank account where a set amount of money you determine is automatically deposited into your retirement account at regular intervals you determine. As the saying goes, every little bit counts!

Even if you start small and increase the amount over time, regularly contributing to your savings will grow your retirement fund and earn more interest as time goes on. While you increase your retirement fund contribution, you may need to make minor adjustments to your every day spending in order to set more money aside. This is a small sacrifice compared to the bigger picture, which is the goal of having a solid nest egg when your retirement time arrives.

If you work for a company that offers a 401(k) savings plan with matching contributions, make sure to take full advantage of that opportunity. That means for every dollar you put into your fund; your employer will contribute a certain amount, which could be equal to yours. Even if it’s a fifty percent matching contribution, that’s free money added to your savings that, in the long run, could increase your retirement savings considerably and possibly double your retirement savings in the long run.

Delaying the time you start collecting Social Security is another way to increase your retirement income. Nowadays, you can start collecting Social Security as early as age 62; however, experts advise the longer you wait the better. In fact, age 70 is now the suggested age to apply for Social Security benefits to take advantage of being able to collect the highest amount possible, which, of course, is based upon the contributions you made during your working career.

Exploring ways to earn extra income is another way to save towards your retirement. That can be anything from freelance projects to selling things you no longer need or renting out a space in your home you don’t use. Seasonal part time jobs are another option to earn additional income to put towards your retirement. If you have time to take on a part time job, the holidays are a time of year where businesses are always looking for extra help. Throughout the year you may also be able to find something part time that matches your skillset and suits your schedule. It’s a good idea to write down all the things you are good at and have experience in, and see if you can find something to do that you are qualified for to earn extra money.

Budgeting your monthly expenses and looking for things you can cut back on can also help you to save money in the long run. By reducing or eliminating unnecessary expenses, you can add that amount to your savings and grow your retirement fund even more.

For some retirees, downsizing is another option and a way to take advantage of the equity you have built in your home over the years. If you have a home that is bigger than you need, this could be advantageous, especially if you have paid your mortgage in full.

The key to any successful endeavor, including saving for retirement, is planning and following through with consistent discipline in order to reach your goals. Start where you are if you have not already begun to save for retirement and keep at it. It’s never too late to begin!