The need for money does not disappear in retirement.
You cannot predict the course your life will take.
The Great Recession took jobs and retirement savings from many Americans.
When life knocks you down, you do not need to stay there.
According to a recent Consumer Reports article titled “Will you have enough money to retire?,” you can adjust and still have a financially sound retirement.
What can you do?
You bring home a paycheck.
You also have taxes, deductions, and bills.
Calculate how much money you have after these expenses.
This will help you know how much you have available to save.
Cut the fat.
Evaluate what expenses you need.
Compare the costs and consider switching providers.
A little bit can go a long way.
Pay off debt.
You do not want to carry debt into retirement.
Start with the highest rate debt first.
Reconsider big ticket items.
Purchase a used car rather than a new vehicle.
Choose a vacation close to home rather than traveling far away.
Move to a smaller home.
Prioritize retirement savings.
Does your employer provide matching benefits for retirement contributions?
Take advantage of this.
It is free money.
What if you are self-employed?
Set up your own IRA or solo 401(k).
These accounts are off-limits until retirement.
Do not let your current certifications or licenses lapse.
Never stop learning.
If you can meet future needs, you may continue to work if you need more money for retirement.
Incorporating these strategies into your financial plan will set you up for a more relaxed retirement.
Reference: Consumer Reports (August 29, 2019) “Will you have enough money to retire?”