Boomers are sorely lacking in retirement savings, according to the data

When one is 20 or 30 years old without saving too much for retirement, it is certainly an awakening, but it is not necessarily a cause for panic. After all, at this point you have several decades of activity to catch up and increase your savings so that they reach a satisfactory level of health.

However, when you are a few years away from retirement, the lack of savings is much more problematic. Unfortunately, that's the reality that baby boomers are facing. In fact, the average boomer has only $ 136,779 in retirement savings, according to a new survey by real estate firm Clever.

SOURCE OF IMAGE: GETTY IMAGES.

At first glance, this may seem like a good amount of money. But remember, seniors are living longer these days and those who leave the job market in their 60s could easily consider a 30-year retirement. At the same time, if we follow the 4% rule, which states that if you start by removing 4% of your savings balance during your first year of retirement, then adjust the subsequent withdrawals according to inflation your nest egg is likely to last 30 years. But when we apply a 4% withdrawal rate to the $ 136,779 average of baby boomers, we only get $ 5,471 in annual income – not a lot of money.

Even though we take the average annual social security benefit of 17,532 USD a year and if we take it into account, there remains only an annual income of 23,000 USD. This may be enough to cover a few basics, but it certainly will not create a comfortable lifestyle. Therefore, if you are an older worker with a retirement savings balance of $ 136,779, it is imperative that you take steps to remedy this deficiency. Otherwise, you risk having financial difficulties once your career is over.

Improve your retirement financial situation

Getting closer to its golden age without making a lot of savings is not a great place, but if it is your reality, know that not everything is lost. First of all, if you immediately start reducing your expenses in your budget, you can free up money to put it in your IRA or 401 (k), and rest assured that every little move will help you. Imagine, in fact, that you are able to reduce your expenses to the point of increasing your pension contributions by $ 300 a month over a period of three years. That's $ 10,800 more for your golden years, not to mention growing your savings.

Another option to consider? Get a second job. This will put in your pocket cash that is not reserved for existing expenses, giving you the ability to save everything. Incidentally, if you are approaching retirement with less than $ 137,000 in reserve, you may not have the choice to work part-time during your good years to supplement your income – in which case you'd better play a role. in a party aside. well down the line.

Finally, you may need to consider postponing your retirement for a few years if your savings are not particularly strong. The longer you work, the more you will have the opportunity to fulfill your nest egg, while preserving your current balance. Extending your career may also allow you to delay filing your claim with Social Security, which is important, because each year you delay benefits beyond your retirement age, you increase your claim by 8%. % per year until you are 70 years old. And when you're sitting with less than $ 137,000 in your IRA or 401 (k), a higher monthly benefit can make a huge difference.

In an ideal world, you should have more than $ 136,779 set aside for retirement at the end of your career. If this is not the case, make an effort to compensate. As long as you still receive a paycheck, you have a great opportunity to improve your financial situation and avoid problems throughout your life.