The Race to Retirement
A recent article by Forbes sited that many Americans over the age of 50 are not prepared for retirement, with approximately only 54% of Gen Xer's secured with savings towards this goal. The postponement of planning and savings have been widely attributed to the motivation to pursue debt reduction instead of a simultaneous planning towards overall financial security. However, financial setbacks, health crisis', loss during the last recession and student loans are critical factors as well.
However, the article offered 8 tips for those in need of escalating saving plans immediately.
1. Let go of all fears and start with a fresh and positive attitude towards success.
2. Steer away from retirement calculators for now. Figure our your overspending and start saving first.
3. Create a catch up strategy in addition to saving. Use IRA's (which has important tax benefits for those 50 and older) and employer sponsored retirement programs an downsize your living arrangements.
4. Delay retirement in effort to put more into savings and to stretch resources.
5. Use apps that increase automated savings.
6. Find ways to generate income beyond investing (bonus, part-time income).
7. Institute the retirement calculator after all these efforts. Adjust where needed and build.
8. Protect your future and consider disability insurance to cover unexpected hard falls.