Oops, Did You Not Save Enough for Retirement?

You are not alone

Did you drop the ball saving for your golden years? You are not alone. Recent statistics from the Center for Retirement Research at Boston College revealed a whopping 50% of Americans have not saved enough to maintain their current lifestyle in retirement. Twenty percent of adults aged Fifty-plus have ZERO savings according to AARP data. Retirement is starting to mean working well into old age. Even though it is late in the game, you can course-correct by budgeting and generating alternative income streams. Who knows, you might discover a newfound sense of financial freedom! The goal is to savor your golden years, not constantly stress about money.

No Savings, No Pension

In America, not having money can feel like a crime. Social Security is probably your sole source of income if you do not have a pension, a 401(k), or an IRA filled with savings. According to Bankrate, approximately 40.2% of retirees rely entirely on Social Security, with the average monthly check being $1,856.38. It could be less. Living off Social Security alone is challenging, but it is possible. You need to get serious about budgeting and minimizing expenses. Learn to appreciate things that do not cost money: a beautiful sunrise or sunset, a visit to the library, or simply people-watching. There are countless ways to entertain yourself without spending a dime.

A Little Help

To help ensure your financial survival, be aware of and take advantage of all available resources. Check with your city’s Social Services department to determine which programs you qualify for and apply. Medicare, Medicaid, Supplemental Security Income (SSI—not to be confused with Social Security), and SNAP (Supplemental Nutrition Assistance Program) are designed to assist you in times of need. If you require help, do not hesitate to seek it out!

Do The Hustle

Find ways to bring in extra income. An extra few hundred dollars a month can significantly stretch your retirement dollars. If you are skilled in your field, consider becoming a consultant. You could teach English to non-English speakers, start a small business, sell your arts and crafts if you are artistic, or explore the gig economy and remote work opportunities with flexible hours. Save as much of this income as possible until you have enough to invest in appreciating assets. Your goal is retirement, so you want your money to work as hard as you do. Remember, earnings can create a tax liability. The tax man and the Social Security Administration are very interested in how much income you generate. If you earn more than $400 in a year, that’s taxable income. Note that the Social Security Administration has limits on how much you can earn if you have not reached full retirement age, which is currently about sixty-seven. Congress is contemplating raising the retirement age to seventy.

Save and Invest

Once you manage to create a cash flow, it is essential to save and invest in appreciating assets. You need your money to make money. Be creative and find an investment strategy that offers a decent rate of return. Take advantage of the magic of compound interest. Some investment vehicles to consider include the stock market (index funds), bonds, real estate (investment properties), and other options. While being creative, plan carefully to avoid creating liabilities. All investments carry inherent risks.

Conclusion

Retirement may have caught you a little off-guard, but it is not too late to make a positive change. With discipline, creativity, and adaptability, you can find a way to enjoy a fulfilling retirement. Embrace the challenge with a proactive mindset:

• Budget Wisely:

  Start by tracking your expenses and cutting unnecessary costs. Every dollar saved can go towards your retirement fund.

• Explore Income Opportunities: Whether it is part-time work, consulting, or starting a small business, additional income can significantly improve your financial situation.

• Invest Smartly: Diversify your investments to reduce risk and increase potential returns. Consider seeking advice from a financial planner to make informed decisions.

• Utilize Available Resources: Do not be afraid to seek assistance from social services, community programs, and federal aid. These resources are there to help you.

• Stay Positive and Informed: Keep a positive attitude and stay informed about financial strategies and opportunities. Knowledge is power when it comes to securing your financial future.

Let's do this! 🚀

References

1. Center for Retirement Research at Boston College. (2022). Retirement Savings Statistics.

2. AARP. (2022). Savings Data for Adults Aged 50+.

3. Bankrate. (2022). Average Social Security Check for Retirement Benefits.