What should you do if you haven’t saved enough for retirement? | Personal Finance Views

Wednesday, March 22, 2017

What should you do if you haven’t saved enough for retirement?

A recent study has revealed that there are around 38 million households which do not have any kind of retirement savings. If you do not have any kind of retirement savings, the golden years of your life will be in jeopardy and you will become dependent upon your children. In order to avoid this situation and maintain your self-respect, you should save for your retirement. Even if you are close to your retirement, you can catch up if you take the right steps. This will help you in managing retirement better.

Ways to save for your retirement

Here are some of the ways which will help you in saving money for retirement. Let’s take a look:

1) Reduce your expenses and save more: When you are close to your retirement and do not have much savings for it, you should immediately reduce your expenses and save more. You will have to control your unnecessary expenses. In order to do so, you need to assess your present financial situation. This will give you an idea as to how much amount you need for your expenses and how much you can save. You will have cut down the expenses that you make toward transportation, entertainment, etc. Also, lowering your standard of living before retirement will help you spending your retirement life easily with a low savings.

retirement

2) Get rid of your debts: If your retirement savings is low, then you should make sure that you pay off most of your debts before you retire. This will help you avoid putting any amount toward debt payments after your retirement. Thus, you will not be cash strapped. Pay off your mortgage and car loan in full before your retirement. Lower your credit card balances and pay off any personal loan that you have taken out. All this will help you in having free money in hand which will help you in managing retirement better.

3) Work part-time to earn money: Even after you retire from your job, you can take up part-time job which will help you earn a regular amount. This will help you in managing retirement life better. The money that you receive from part time job will help you pay for your medical expenses or other necessary items. Thus, you won’t be dependent on others.

4) Delay your retirement: If you haven’t saved enough money for your retirement, then you can delay your retirement if possible in order to have a lump sum amount as savings. If you have earlier planned to retire at the age of 65, now due to the present situation, you can delay your retirement to 67 years. These 2 extra years will help you save quite a lot of money if you plan properly.

5) Take full advantage of social security benefits: In order to maximize your social security benefits and have ample money during the golden years of your life, you should opt for social security late in life. Many people opt for social security benefits immediately after they are 62 years of age. This may not be the right strategy always. You can delay your claim.

Hope the above mentioned steps will guide you in safeguarding your retirement life when you haven’t saved much for your retirement.

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