How To Make Sure You Have Enough Saved For Retirement

Whether you are close to retirement age or have decades left to go until you call it a career, it is normal to worry whether you will have the funds you need once you stop working. It is impossible to predict the future, but there are a few steps you can take to help you feel more confident in your retirement strategy.

Cover the Basics

Before worrying too much about alternative ways to fund your retirement, make sure you are fully participating in any retirement plan offered by your employer. This means contributing the maximum amount possible to a 401k. If you aren’t able to contribute the full amount, make an effort to contribute enough to take advantage of your employer’s matching funds.

It’s Never Too Late

No matter how old you are, if you aren’t saving for retirement, you need to start doing so. If it feels like you have waited too long or that you won’t be able to save enough to make a difference, you are wrong. While it is ideal to start saving for retirement as soon as you enter the workforce, start where you are and make a commitment to set money aside for retirement each month.

Lower Your Monthly Expenses and Invest the Savings

One painless way to increase your retirement fund is by finding savings in your budget and redirecting those. For example, you can refinance your existing student loans into a single loan through a private lender. A student loan refinance will free up money that you can then invest in an IRA to boost your retirement savings.

Think About What You Want from Retirement

Do you want to retire as soon as possible and travel, or do you enjoy your job and plan to work as long as you feel able? Many people fall somewhere in between. If you haven’t given it much thought, take the time to consider how you want your retirement to look. Your goals for retirement will affect how much you need to save. Will you be keeping your home, and will that home be paid off?

If you don’t continue to spend on mortgage payments after retirement, your monthly expenses will not be nearly as high as they are while you are paying for housing. If you plan to downsize, consider how that will translate. Will you stay in the same area or move to somewhere warmer or closer to other family? If you plan to move, consider the cost of living in the area. Purchasing a smaller home in a more expensive area can take all of the profits you get from selling your home.

Consider Scaling Back

One way to retire on time if you don’t have significant savings is to continue to work part-time. Retiring from your full-time job and taking a less stressful part-time position will help your retirement savings stretch much further. You may find the transition from full-time work to retirement leaves you feeling slightly lost, and the regimen of having some type of schedule helps make the transition easier.