What can you do if you feel a bit behind the curve when it comes to retirement planning? Is there still time for your retirement funds to blossom into the future you’re hoping for?
Have you ever been a late bloomer? Whether in high school or young adulthood, it’s common to have a few late bloomers in the group. How about when it comes to retirement? Do you feel a bit behind where you want to be in terms of saving and preparing for retirement?
On today’s episode of The Financial Answer podcast, we talk through a few ways you can catch up if you are a financial late bloomer when it comes to saving for retirement.
Once you turn 50, you can make up for lost time by contributing more into your accounts. It allows you to make up for years that you weren’t able to save as much by increasing the contribution limitation. From age 50 to 60, that’s a ten-year timeframe that can make a big difference when it comes to your retirement savings.
Perhaps you are wondering where to get that extra money to contribute. It might be worth looking at your kids–are they all grown up and ready to be out on their own? It might be time for them to pay their own cell phone bills or get a part-time job in order free up some of your funds. Remember, saving for their college is nice, but you need to prioritize your retirement.
As you get older, hopefully more of your debt is disappearing. Maybe you’ll pay off the mortgage or pay off your car, which will allow you to contribute more towards your investments when you no longer have to make those payments. Or, maybe you’ll want to downsize to reduce the space, money, and time spent on your home.
Regardless, you want to stay focused and disciplined now. Listening to financial advice and meeting with an advisor to get serious and save will get you a lot farther than giving up. The past is the past, but you still have an opportunity to save for the future.
Listen to the full episode with the audio player above or click on the timestamps below to hear a specific segment.
0:54 – What it means to be a late bloomer.
3:03 – Catch-up contributions allow you to save more once you turn 50.
4:38 – Take the adult kids off the family payroll.
7:35 – Disappearing debt can help lighten the load.
9:56 – Downsizing the home will free up funds (and time).
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