How to Save for Retirement When You Started Late

Experts say you should start investing in retirement years ahead of time and throughout your career. Unfortunately, not everyone gets the chance to save early on. Unforeseen life hurdles take away from the savings for what should be a comfortable retirement. Whether someone started saving in their twenties or in their 50s, the more important idea is to start now.

At The Care Assistance Center, we understand the need for peace of mind when it comes to saving for retirement and securing benefits like Social Security. We provide services and care options to families across the Triangle to ensure their senior loved ones are cared for before and throughout retirement. Fortunately, it’s never too late for someone to start saving for retirement.

Here are 5 tips that you can use to start saving:

  • Estimate your retirement budget. Knowing what your financial goals are will make it easier to figure out what you need to save. Know what’s essential and what’s ideal.
  • Make plans to delay and maximize Social Security. Although it’s tempting to claim your Social Security quickly with little savings on hand, this isn’t a good idea. By postponing your benefit claim up until age 70, you’ll receive an 8% benefit for every year past full retirement age (FRA) that you delay. For many, this may make sense but, for others, it may not. You need to find out for sure.
  • Pay down debt. Pay off credit cards and car loans. Make extra mortgage payments if possible. Without consumer debt weighing you down, your paycheck can go towards your retirement savings in the years to come.
  • Don’t take on additional risk. Some people reach middle age and take on larger-than-life investments and risk potential losses. Don’t be one of them.
  • Save, save, save. This is a no-brainer. Take a look at your current spending budget to see how much you can afford to contribute to your savings. Anything counts.

It’s not too late to start saving, but now is the time to reflect on spending habits, budgeting, and plans for the future. Contact The Care Assistant Center and ask how you can start saving for retirement today.