3 things to do if you're in your 50s without retirement savings



[ad_1]

There is a reason why we are supposed to save independently for retirement: most older people need 70% to 80% of their previous income to live comfortably and social security will only provide. about half of this income to average workers. Without savings, it is quite difficult to close this gap.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "How much savings should you aim for?" Retirement costs the average American $ 46,000 per yearbut you may need more or less money depending on your expenses and the lifestyle you want to maintain. Meanwhile, Social Security pays only $ 17,500 a year to the average senior, so if that is the kind of benefit you are considering and you have not d & # 39; Savings at the present time, you are facing a considerable gap. "Data-reactid =" 12 "> How much savings should you aim for? Retirement costs an average of $ 46,000 per year to the American, but you may need more or less money. Money depending on your expenses and the lifestyle you want to maintain Social Security pays only the senior average today about $ 17,500 a year, so if that's the kind of Benefit that you are considering and that you have no savings at the present time, you are facing a considerable gap.

Middle aged man wearing glasses and a black sweatshirt with a serious expression

SOURCE OF IMAGE: GETTY IMAGES.

Now, if you are in your twenties, thirties, or even forties, you have a decent window of time to start setting aside cash for retirement. But if you are already in your fifties, this window is much narrower. Here's what you need to do if you are faced with this latest scenario and want to save your golden years.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "1. Do not panic"data-reactid =" 26 ">1. Do not panic

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "I will not lie – be in my 50s without money For the future, this is not a great place, but it is not an absolute disaster either, so instead of freaking out or resigning to an impoverished retreat, perform immediately. changes that free money. budget. You can reduce your living space, move from a family of two cars to a single vehicle, or reduce the luxury you eat, such as restaurant meals and non-professional clothes. If you manage to save $ 500 a month over the next 15 years to save, and your investments generate an average annual return of 7%, you will accumulate about $ 150,000. "Data-reactid =" 27 "> I'm not lying – being in my fifties with no money earmarked for the future, it's not a great place, but it's also not An absolute catastrophe, so rather than panic or resign yourself to an impoverished retirement, make immediate changes that free up money in your budget.You can reduce your living space, spend a while. family of two cars with a single vehicle, or reduce the luxury you eat, such as restaurant meals and non-professional clothes, over the next 15 years to save, and your investments generate an average annual return of 7%, you will accumulate about $ 150,000.

Does this represent a huge saving for retirement? Honestly no. But it's better than nothing and it's a good place to start.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "2. Get a kick from the side"data-reactid =" 29 ">2. Get a kick from the side

You can only reduce so much living expenses before making you miserable. You can make some significant changes that bring you back several hundred dollars a month, but if you are under 50 years old with no savings to prove, you will have to do better than that.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Enter the side edge.The beauty of obtaining A second job in addition to your main job is that the money you earn will not be spent on existing expenses, giving you the opportunity to save everything.In fact, among the millions of Americans who are in a hurry, 14% do it "data-reactid =" 31 "> Enter the side tumult The beauty of getting a second position above your main job is that the money you earn will not be allocated to the expenses to save money. In fact, of the millions of Americans who are spoiled for choice, 14% do so for the sole purpose of building retirement savings.

Imagine that you can earn $ 500 a month in addition to the $ 500 you release by reducing your expenses. If you save $ 1,000 a month for 15 years with an average annual return of 7%, you will have just over $ 300,000 for retirement. Suddenly, things look much more promising, is not it?

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "3. Make plans to work a little longer"data-reactid =" 33 ">3. Make plans to work a little longer

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Hard to push you to stay in the job market When you plan to retire at a certain age, but extending your career can work wonders for your retirement in several ways: first, if you are able to delay your social security benefits beyond your retirement age (67 for people born in 1960 or later), you will increase them by 8% per year up to 70 years. And it's a good way to offset a low savings balance. "Data-reactid =" 34 "> It's hard to stay in the job market when you're planning to retire at a certain age, but extending your career can be very beneficial to your retirement in many ways : first, if you are able to delay your social security benefits from retirement age to retirement age (67 for those born in 1960 or later), you will increase them by 8 % per year up to age 70. And it's a good way to offset a small savings balance.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Working longer will also provide you with an additional opportunity to imagine that you save $ 1,000 a month, but instead of doing it for 15 years, you do it for 20 years, suddenly you end up with a nest egg of almost $ 500,000, assuming the% return we've been seeing since the beginning c & # 39; A good deal of money. "data-reactid =" 35 "> Working longer will also give you an additional opportunity to contribute to your retirement plan – imagine that you save $ 1,000 a month instead of doing it for 15 years you've been doing it for 20 years and you end up with a nest egg of almost $ 500,000, assuming the 7% return we've seen from the beginning. c & # 39; a nice sum of money.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Do not forget that Americans live longer these days, with one in four 65-year-olds expected to live beyond the age of 90. Extending your career will not necessarily leave you without retirement. will give you more money to enjoy your golden years once you have them launched. "data-reactid =" 40 "> Do not forget that Americans are living longer these days, with one in four 65-year-olds expected to live past the age of 90. Extending your career will not leave you there. necessarily without retirement but this will give you more money to enjoy your golden age once you start them.

The last thing you want to do is run out of money and fight as a senior. If you are under age 50 without retirement savings, make a commitment to do better now. The longer you wait, the more you finally put your golden years at risk.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 42 "> More from The Motley Fool

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The Motley Fool has a disclosure policy."data-reactid =" 50 ">Motley Fool has a disclosure policy.

[ad_2]
Source link