As we get older, a lot of us say to ourselves, I cant afford to retire.
Ill work until Im 70.
Or even simpler: Imneverretiring.
Want to save for retirement but don’t know where to start?Our guidebreaks down savings strategies by age and shows you how to make your retirement a priority.
Ill just work till Im dead.
But the truth is, it rarely works out that way.
That may be a bummer, but thats how it is.
Active workers are expecting to retire at a median age of 65.
However, actual retirees reported that they really stopped working at a median age of 62.
In other words, be prepared: You might have to retire earlier than you think.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help… Its findings match up with what the organizations surveys have found in previous years.
The numbers really havent budged, Copeland said.
The results show a big gap between workers expectations and how things actually played out for retirees.
Here are four options to consider:
1.
So many of us arefinancially stressed.
Having said that, see if you’ve got the option to save more for retirement.
If youre not doing that, youre basically passing up free money.
The average company match is 4.5%,according to a report from Vanguard.
What percentage of their pay does the average person put into their 401(k)?
For men, its 7.5%.
For women, its 7%,according to Vanguard.
Still, save what you might.
No 401(k)?
The maximum it’s possible for you to contribute to your IRA is $6,500 per year.
People 50 and older can save another $1,000 per year on top of their contribution limit.
Use Your Health Savings Account for Retirement Planning
Ahealth savings accountcan be another good retirement planning tool.
Its a tax-advantaged account that you might contribute to to pay for medical expenses.
As we age, medical expenses increase quickly.
Plus, youll benefit from significant tax savings along the way.
Heres an article about 15 online jobs for retirees.
As with anything you find online, some opportunities are better than others.
Other factors are caregiving needs for spouses, parents and other relatives.
We know this isnt welcome news, but its definitely something to think about.
Everyone whos working needs to be aware of this reality and needs to plan ahead.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder.
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