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Editor’s Note: This is a guest article from Alvina Lopez
All your life, you’ve probably heard how important it is to secure your retirement early. You’ve put it off, made excuses, and now you’re closer to retirement than you are away from it. Your first instinct might be to panic or resign yourself to working until you drop dead, but it doesn’t have to be that way.
With careful planning and smart strategies, you can make retirement work even when you’re way behind and close to cashing in. You don’t have to depend on Social Security alone. Here are some of the ways you can get back on track.
- Know what you need. Sit down and make a plan for the expenses you will need to cover in your retirement. Think about what you already have in retirement accounts, and what you can expect to receive from Social Security. A financial planner or retirement software can be extremely helpful in this situation to ensure that nothing is overlooked. With a clear view of what’s needed, you will be better prepared to tackle the mounting task of retirement.
- Cut back. The simplest way to get on track for retirement is to save as much as you can, as often as you can. Save this year’s vacation for your retirement years. Forgo frequent restaurant nights out for healthy cooked meals at home.
- Plan on retiring a bit later. For some, 70 is the new magic number. By putting off retirement by a few years, you can take advantage of health benefits longer, earn more money to contribute, and give your nest egg a bit longer to grow before you tap in. Additionally, your retirement will be shorter, so you will not need as much in your fund.
- Consider part time employment. Setting up part time employment helps you in two ways. First, if you start a part time job while you’re still working full time, you can funnel part time funds directly into your retirement. Second, you will already be set up in a job you’re comfortable with if you decide later that you’re ready to go on semi-retirement and work part time.
- Get selfish. You may have kids going off to college and elderly parents who need support. You don’t have to completely forget about your desire to help them, but remember that you will also be in a precarious position when it’s time for you to retire. College students can get loans, and you may be able to find benefits programs for your parents. Additionally, say no to spendthrift friends and family in need of loans-that money is better taken care of in your retirement account.
By getting on track for your retirement as soon as you can, you can stop the panic and anxiety of not knowing what the future holds for you. Take these steps and more to get a better handle on the finances of your twilight years.
This guest post is contributed by Alvina Lopez, who writes on the topics of accredited online colleges. She welcomes your comments at her email Id: alvina.lopez@gmail.com.