It's Never Too Late To Start Saving

What to do when you start planning late.

1. Save as much as you can - starting right now.

  • Put money into savings plans that will give you a tax break – whether it’s your 401(k) plan at work or an Individual Retirement Account (IRA).

 

2. Reduce expenses.

  • Focus on saving as much as possible.
  • Put your savings first – resist giving gifts and money to your children, grandchildren or other family members.

 

3. Plan to keep working longer.

  • If you haven’t got enough in your savings or pension plans to support you in retirement, you may need to continue working, either full-time or part-time.
  • Find out how much you can expect to get from Social Security and other income sources so you know when you can afford to retire.

     

4. Take a second job or work extra hours, and put as much as possible into savings.
  • Earn extra money now, if you can, and save it for when you can no longer work.

     

5. Plan to start collecting Social Security after age 65, not before.
  • Your monthly benefit will be higher if you can wait at least until age 65 or 67 or even 70. Find out what your benefit will be at each age.
  • Once the benefit is reduced for early retirement, it stays at that reduced rate.

 

6. If you have equity in your home, find out about a reverse mortgage.

  • AARP has information on reverse mortgages available at www.aarp.org/money/revmort/. Investigate whether this would be a good option for you.

 

 

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