How to Save for Retirement Even if You are Late to the Game

Ideally, saving for retirement is something that you should start doing early on, long before you are even close to retirement age. However, saving for retirement isn’t always easy, especially when life throws you costly surprises along the way. If you do start nearing retirement age and aren’t quite where you want to be, don’t worry; it’s not too late to play “catch up” and to start saving for retirement. In fact, we’ve got some great tips that can help you to start saving right now, even if you feel like you’re showing up to the savings game a little late.   

Tip #1: Retirement Accounts are the Way to Go

To start off with, if you have access to retirement accounts, then these are definitely a smart thing to take advantage of. If you have a workplace-sponsored account, always make every effort to contribute to it as much as you can- at least as much as it takes for your employer to match your funds since this can essentially double your retirement money.

If you don’t, for whatever reason, have access to a workplace account, just consider making as many contributions as possible to an Individual Retirement Account (IRA); you won’t have the benefit of employer contribution matching, but you can still save a nice amount this way.

You can also consider a Roth IRA to build tax-free or nearly tax-free retirement savings, and, after age fifty, know that you’ll also be eligible to contribute more money than usual, referred to as a”catch up”amount, to your IRA and/or workplace retirement account until you retire, which can help to close the gap between what you hoped to save and what you’ve actually saved.

Tip #2: Save As Much As You Can

In addition to saving via your retirement accounts, you should also have a basic savings account that you dip into only for emergencies. Financial professionals recommend that you have at least three months of income in this savings account for those “just in case” moments in life. The nice thing is that, if you don’t end up depleting your savings on emergencies, you can use the money you’ve saved once you reach retirement, and, if you have enough of it, this can really help to hold you over during those tough parts of your retirement.

Tip #3: Use “Surprise Money” Wisely

Finally, whenever you come across unexpected money, like a nice bonus at work, an inheritance from a loved one, or anything else, do something smart with that money. Put it in your retirement account, invest it, or just add it to your savings. If you use all the “extra money” that comes your way wisely, it can really add up by the time you get to retirement.

By following these simple tips and, when possible, working with a financial adviser, you can reach retirement ready to enjoy your golden years without worry.