Those who reach retirement age but are short on savings have to rethink the plans they had for their golden years. According to a recent survey, more than half of Baby Boomers admitted that they may have to look for another job in retirement to have enough money to make ends meet.
It’s best to start thinking about retirement and what you want it to look like when you reach your 50s. This provides an opportunity to set goals and make the appropriate adjustments moving forward in the decade or so leading to retirement.
If you find that your savings aren’t quite matching up with your goals, it’s never too late to make a new plan that considers any necessary changes. The first thing to take a look at is your annual income. Understanding your income and expenses allows you to see how much excess cash you have so you can invest it accordingly. Another thing is to make sure you’re taking advantage of any employer match on your retirement account.
Keep in mind that life is not over at retirement. You’re still planning for decades of life ahead. Work to get your expenses down so you have a higher amount of disposable income. Don’t increase expenses when you move into the next phase of life. Save any excess money to fund your future.