Tag: retirement

How to Save More for Retirement After Age 50

Whether it’s advice from their parents, a response to television ads urging viewers to save for retirement, or their own financial savvy, many of today’s young professionals recognize the importance of saving for retirement from the moment they receive their first paychecks. But men and women over 50 may not have been so practical, and many such professionals may feel a need to save more as their retirements draw ever closer. Saving for retirement might seem like a no-brainer, but the National Institute on Retirement Security notes that, in 2017, almost 40 million households in the United States had no retirement savings at all. In addition, the Employee Benefit Research Institute found that Americans have a retirement savings deficit of $4.3 trillion, meaning they have $4.3 trillion less in retirement savings than they should. Men and women over 50 who have retirement savings deficits may need to go beyond depositing more money in their retirement accounts in order to live comfortably and pay their bills in retirement. The following are a few simple ways to start saving more for retirement.

• Redirect nonessential expenses into savings. Some retirement accounts, such as IRAs, are governed by deposit limits. But others, such as 401(k) retirement plans, have no such limits. Men and women can examine their spending habits in an effort to find areas where they can cut back on nonessential expenses, such as cable television subscriptions and dining out. Any money saved each month can then be redirected into savings and/or retirement accounts.

• Reconsider your retirement date. Deciding to work past the age of 65 is another way men and women over 50 can save more for retirement. Many professionals now continue working past the age of 65 for a variety of reasons. Some may suspect they’ll grow bored in retirement, while others may keep working out of financial need. Others may simply love their jobs and want to keep going until their passion runs out. Regardless of the reason, working past the age of 65 allows men and women to keep earning and saving for retirement, while also delaying the first withdrawal from their retirement savings accounts.

• Reconsider your current and future living situation. Housing costs are many people’s most considerable expense, and that won’t necessarily change in retirement. Even men and women who have paid off their mortgages may benefit by moving to a region with lower taxes or staying in the same area but downsizing to a smaller home where their taxes and utility bills will be lower. Adults who decide to move to more affordable areas or into smaller, less expensive homes can then redirect the money they are saving into interest-bearing retirement or savings accounts.

Many people begin saving for retirement the moment they cash their first professional paycheck. But even adults over the age of 50 sometimes feel a need to save more as their retirement dates draw closer, and there are many ways to do just that.

Make Vacations and Travel a Key Component of Retirement

When the time comes to bid farewell to conference calls, meetings and daily commutes, retirees have open schedules to fill with whichever activities they choose. Travel is one exciting way to pass the time.

Traveling can be a rewarding prospect for active seniors, particularly those who successfully preplanned for retirement and have the income to fund various excursions. Many seniors, both in the United States and Canada, find that travel tops their to-do lists once they retire. According to Senior Travel magazine, new travel options are emerging for newly minted retirees looking for something a little different from the status quo.

The list of destinations retirees have at their disposal is limitless. The following ideas are some of the more popular ways retirees choose to travel.

Road trips rule.

Taking to the highways and byways is an excellent way to see the country. Seniors can customize their routes depending on which places they want to visit. RV travel can be as comfortable or as rustic as travelers prefer. Many seniors spend months traveling in their campers, which offer many of the same amenities of home. Campsites and special RV hook-up sites offer the other necessities of traveling the open road.

Genealogical tourism is popular.

People hoping to trace their ancestry and visit their ancestral homelands are one of the fastest-growing travel segments. Visiting an old church in Europe where ancestors were married or buying food from a market in which a great aunt or uncle once worked leads retirees on many international adventures. Such trips provide travelers with a unique opportunity to understand their roots up close and personal while enjoying some international travel along the way.

Exotic tours can be exciting destinations.

History buffs or adventure-seeking couples may be particularly attracted to exotic travel destinations that are slightly off of the beaten path. Travel tours may take vacationers to destinations such as excavation sites or backpacking through the rainforest. With passport in hand, seniors can go just about anywhere their desires take them.

Enjoy a relaxing seaside trip.

A seaside vacation can be the perfect trip for seniors who want to put their feet up and sip some cocktails while watching the waves lap the shores. Many beach resorts offer all-inclusive packages for different age groups. Meals, excursions and hotel rooms can be bundled into one affordable, confusion-free price.

Go cruising.

Speaking of all-inclusive vacationing, cruising seems tailor-made for those ages 50 and older because it offers the convenience of accommodations, food, entertainment, and transportation all in one. The various activities offered on the ship mean travelers can find ways to spend their time how they see fit. Cruising couples can opt to spend all of their time on the ship enjoying carefully prepared meals and entertainment or disembark and explore the various ports of call along the way.

Now that they have more free time, retirees can gear up for travel adventures to remember.

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Catch Up on Retirement Savings

Many budding retirees plan to travel, relax and enjoy the company of their spouses when they officially stop working. But such plans only are possible if men and women take steps to secure their financial futures in retirement.

According to a recent survey by the personal finance education site MoneyTips.com, roughly one-third of Baby Boomers have noretirement plan. The reason some may have no plan is they have misconceptions about how much money they will need in retirement. Successful retirees understand the steps to take and how to live on a budget.


retirementsavings· Have a plan. Many people simply fail to plan for retirement. Even men and women who invest in an employer-sponsored retirementprogram, such as a 401(k), should not make that the onlyretirement planning they do. Speak with a financial advisor who can help you develop a plan that ensures you don’t outlive your assets.

· Set reasonable goals. Retirement nest eggs do not need to be enormous. Many retirees have a net worth of less than $1 million, and many people live comfortably on less than $100,000 annually. When planning for retirement, don’t be dissuaded because you won’t be buying a vineyard or villa in Europe. Set reasonable goals for your retirement and make sure you meet those goals.

· Recognize there is no magic wealth-building plan. Saving comes down to formulating a plan specific to your goals, resources, abilities, and skills. Make saving a priority and take advantage of employer-sponsored retirement programs if they are offered.

· Don’t underestimate spending. You will need money in retirement, and it’s best that you don’t underestimate just how much you’re going to need. No one wants to be stuck at home during retirement, when people typically want to enjoy themselves and the freedom that comes with retirement. Speak to a financial planner to develop a reasonable estimate of your living expenses when you plan to retire.

· Pay down or avoid debt while you canRetiring with debt is a big risk. Try to eliminate all of your debts before you retire and, once you have, focus your energy on growing your investments and/orsaving money for retirement.

· Start early on retirement saving. It’s never too early to begin saving for retirement. Although few twenty-somethings are thinking about retirement, the earlier you begin to invest the more time you have to grow your money. Enroll in a retirement plan now so you have a larger nest egg when you reach retirement age.

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