The retirement years seem to creep on us pretty quickly. Before we know it, we are facing the time to stop working full-time and take it easy. There are, however, financial obstacles to deal with later in life. From health care issues to lingering debt, Enterprises TV shares tips on how to catch up on retirement savings.
Live on a tighter budget for five years before retiring. When we choose to live within a set budget, we learn how to manage the financial aspects of everyday life. By tightening the purse or wallet strings, we’ll have more room to finagle the monetary surprises that arise.
Pay down any remaining debt as soon as possible. No one wants to enter retirement years with a load of debt. The money saved from not having to pay credit card bills or mortgages can be stashed in retirement accounts.
Speaking of which, work toward maxing out 401 (k) accounts at work. Use every available option do to so. Set up automatic transfers from checking to individual retirement accounts (IRAs). If there are more than one type of savings account, work out a plan to stash funds in them every month until the day of retirement.
Enterprises TV also suggests working as long as possible. We know that sounds tiring and maybe even a little disappointing. The longer we work, the longer Social Security benefits will accrue, which means we will have more funds to live when once we decide to call it quits.
Now is the time to organize, plan and schedule financial tasks related to retirement. The more we have, the better those after-work years will be.