When it comes to your retirement savings – Are you saving enough to retire?
Well its not surprising that while most people may think they are saving enough for retirement, the reality is that they are not!
Retirement saving is one of the hardest things that humans have to do, in terms of our thinking. When you’re saving for something in the future, 30 or 40 years from now, you really have no clue about what you’ll be getting. So it’s no surprise that it’s something most people can’t do very well.”
Those are the words of Dan Ariely, a behavioral economist at Duke University and author of books like Predictably Irrational.
So while you maybe thinking that you are doing great with your retirement saving, now is a good time to see whether you are really saving as you should for your retirement.
The biggest problem with saving for retirement is that there is really no single all-encompassing answer as to how much you should be saving for retirement and what will be enough. As the final number is so subjective – it depends on where you live, lifestyle and life expectancy among other things.
While most financial experts recommend that you plan for around 75 percent of your pre-retirement income. Others feel that it should be based on anticipated retirement expense.
Whatever view you take, what you save for retirement is really up to you and your vision of how you would like to live out your retirement.
The second concern you will have is overcoming your need for “instant gratification.” This is important because if you are going to save it means giving up some of what you will need today in the hopes that it will provide you with an even greater benefit tomorrow.
Retirement savings options for 50 somethings
There is no question that you maybe in your 50’s and still struggling to meet your retirement target. Well if you are here are 4 key strategies you can use to relieve the pressure.
- Start saving 1% more for every year your age exceeds 45
- Consider delaying your retirement
- Consider downsizing your home and put the equity towards your retirement.
- Moderate your lifestyle and retirement expectations.
6 Retirement savings tips for 20 & 30 somethings
The best time to start your retirement planning and saving is in your 20s and 30s so here are 6 retirement savings tips to get you started.
1. Get on a spending plan
No matter how you would like to save for retirement you won’t have money to save if you do not start managing your money. And you can only do this by creating a spending plan that allows you to make sure your expenses leave enough for you to achieve your savings goals.
Having a spending plan put you in control of your money and allows you to tell your money what to do instead of your money controlling you.
Taking control of Your Money is a great tool to get you started on creating a spending plan
2. Get out of debts
You want to make getting out of debt a priority. So if you have any loans including college loans and credit card debts you want to get rid of these as soon as possible. This will take some sacrifice but in the end it will be worth it all as you will be able to really focus on your retirement saving.
3. Start saving now
Nothing is more powerful than the effect Time has on Money. So you want to start saving now, to get time working for you as the compounding of investment returns on your savings will means more for your retirement. And maybe also help you to retire earlier.
Do not be discouraged if you can only save $10 or 1% of your salary now, the discipline you develop now will certainly pay off once you have tweaked your spending plan.
4. Take your employer’s free money
You want to join your employer’s pension plan as soon as possible as it’s like getting free money. You see your employer will most likely match your a portion of your contribution so you want to start getting this match as son as possible.
5. Save all your raises
A great way to increase your retirement savings is to put all raises toward your retirement. Again this where your spending plan comes in as it will help you to continue to make do with what you are currently earning so that all future increase can be put towards saving for your retirement.
6. Don’t Touch It!
You will be tempted once your saving starts to grow as many plans allow you to borrow money from your retirement account but don’t touch. Remember this money is for your retirement and when you take money out of your retirement account you are not giving it the time that it needs to grow.
The same apply for when you are changing jobs be sure that you either roll over the funds to your new employer’s pension plan or leave it where it is but resist the temptation to spend it at all cost.
You also do not have to plan your retirement alone because right now, you can get help when you enroll today in Retirement Secret Exposed 90 Day Coaching Program which gives you the guidance you need to retire early .
But you’ll have to hurry. Because time is limited this introductory offer ends soon.
How much money have you saved and invested over the last five years? If your answer is “None”, then ask yourself “Who sold you on that plan?”