How to catch up on retirement savings

Playing retirement catchup isn't easy. Learn how to start planning for retirement late with these steps and considerations.

Tips for late retirement savings:

If you’re on the verge of retiring but still haven’t started to create a financial strategy for living in retirement, here’s a short and easy list of tips to help you get started.

Calculate your assets.

Even if you haven’t saved much, take a few minutes to add up what you do have: pension, 401(k), savings account, investments, mattress money, etc. Roughly project how much you think it will grow by the time you retire. It may not be much, and calculating the amount could be a cold dose of reality, but you’ve got to start somewhere.

Prioritize your budget. 

After you’ve taken a hard look at what you can and cannot afford to do after you retire, you should determine what your priorities are and make a budget to guide you. We know it’s hard to accept, but you may not have the financial resources you once anticipated having, so it’s important to know your limits and adjust your spending accordingly.

If you still have a few years before retirement, you can cut back on spending now and save a little more for later. You may also want to consider postponing your retirement a few years in order to get the full benefits of Social Security and save a little more before you call it quits.

Plan for the unexpected. 

Over the last decade or so, many of us have been taken by surprise by an assortment of unexpected circumstances. Consider setting a little aside for emergencies within your monthly or annual budget. It never hurts to put money away for a rainy day, even in retirement. Having enough set aside to cover three to six months of your expenses is a good start.

Make health a priority. 

Being aware of your health is vital to enjoying a successful retirement. More than ever, health care provisions and costs will play an important part in your life. Medicare offers some great benefits to retirees, so make sure you apply on time if you are eligible for it; applying late can result in delayed benefits and higher premiums.

Seek help for late retirement preparation. 

There are plenty of resources, both online and in your community, to help you better understand what you need to prepare for your retirement. Qualified financial professionals work with people in all stages of retirement planning and can help answer some of your questions.

RELATED CONTENT

This material is for informational purposes only. Neither New York Life nor its agents provide tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.