Playing Catch-up on Retirement Savings

If you find yourself close to retirement with too little savings, don’t panic. Here are some strategies that may help.

• It’s never too late to start saving! Don’t beat yourself up, simply put a plan together and act on it.
• Save, save, save. Try to put at least 20 percent of your income into savings or tax-sheltered retirement plans.
• Increase your IRA contributions. At age 50 you can begin catch-up contributions, up to $5,500 extra per year.
• Buckle down and trim extra expenses. For tips on saving CLICK HERE.
• If needed, consider a second job or work extra hours.
• Retire later. Or, at least consider going part-time when you’ve reached your planned retirement date.
• Delay taking Social Security. The longer you delay, the more you get paid.
• Revisit your housing situation. Rent out a room or move to a less expensive home and save the profits.
• Talk to the financial experts such as your banker or financial planner and be sure to include your tax advisor. They can help you make sure your investments are appropriate for your goals and risk tolerance and are set up to meet your tax situation. Diversify, but don’t take risks you can’t afford.
• Put any windfalls to work for you, such as a bonus, inheritance or gift.