Your Financial Future:
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.
- Earn extra money now, if you can, and save it for when you can no longer work.
- 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.