I stumbled upon this interesting article, You Can Still Retire Even If You’ve Saved Nothing, posted on the Bottom Line Personal in June. It is a topic many baby boomers are unfortunately being faced with: RETIREMENT. Of course we would all like to think of retirement as a time to relax and enjoy the fruits of our labor, but due to the economic climate we understand that dream or idea appears to have become less obtainable as time passes. The article itself is geared towards a population that, to quote the article, “haven’t saved a dime” for retirement, but I believe this article relates to a larger demographic who have been affected by layoffs, high unemployment percentages, or any other financial hardship that has caused a significant decrease or depletion of their bank and retirement accounts.
So if you have little to no money saved for retirement, there are some emergency strategies that you can start now to prepare.
The first thing to consider would be the Tax Code Catch-up provision, which allows individuals 50 years of age and older to increase their 401K and retirement savings plans contributions.
The second course of action would be to establish a new budgetary process and spend differently. Yes, it can be difficult to refrain from continuing bad habits, but starting a path of healthy financial decisions today can have a lifelong effect.
Lastly, and perhaps most difficult, would be a change in your expectations or adjusting your idea of retirement, including where you’ll retire. You may have to decide to retire later than expected, enjoy retirement in a state without a high cost of living, and change your plans of what you’ll be doing in retirement.
Simply put, you can still make decisions today that will help you afford a comfortable retirement tomorrow.