Retirement saving. Those two works often strike immediate fear and worry in the heart of New Yorkers. It is hard enough for many families to meet their weekly needs, from mortgage payments to children’s tuition payments and everything in between. In the end, there is often little left over to stock away for one’s golden years. Add in the 2008 economic recession, which hurt many plans, and it is no wonder that New Yorkers are worried about the inadequacy of their retirement.
Fear not. Depending on your age, there is still time to put strategies in place to ensure access to resources for later in life. Even if you are knocking on retirement’s door, there are still steps that can be taken to catch-up.
Strategies from Forbes
A Forbes article last week shared five basic tips to help boost your retirement savings. The strategies, while straightforward, are worth repeating. Take a moment to look at the entire list.
First, for those still young, it is tremendously helpful to set up automatic saving withdrawals. The story reminds that every dollar saved now is worth two dollars in a decade. The principle applies indefinitely, the earlier you start, the more time compound interest has to work to grow your nest egg. By having the savings taken out automatically–without requiring an overt act on your part–there is a much greater chance that you will save adequately.
For those closer to retirement, it may be prudent to downsize earlier than planned. Upon retiring, many get rid of unnecessary expenses–extra cars, large homes, etc. One way to boost savings near the end is to take these steps a bit before actually retiring. Moving into a smaller living space and getting rid of other unnecessary expenses can go a long way.
If you have very little time left, you still have options. One common recommendation is to work one extra year–live on retirement resources, and save 100% of the last year’s salary. In this way, your retirement nest egg can receive one extra boost. If that step still is not enough, there is always the option of working part-time in retirement. After all, many retirees find themselves looking for new activities anyway. It may make sense to turn the free-time into a part-time retirement career to help with expenses.
It is prudent to visit with financial planning professionals to understand your options. At the same time, it is important to weave your retirement plan into an estate plan, so that you can take full advantage of various trusts to protect assets.