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Behind In Your Retirement Savings? It’s Not Too Late

Behind In Your Retirement Savings? It’s Not Too Late

By Susan Williams

Are you behind in your retirement savings? If you are, you are definitely not alone.

report in the US discovered that people between the ages of 55 and 64 have a median of $120,000 saved (which is substantially lower then what is estimated as being needed) and another study of Canadians over 50 found that 22% haven’t started to save for retirement at all.

So if you find yourself in this situation – don’t despair. There are some actions you can take today that can help.

In the following video produced by BNN Bloomberg, Pattie Lovett-Reid shares some of these suggestions;

These are some of the highlights of what Pattie shared;

How To Save More For Retirement

  • Even if you are in your 50’s it is not too late to save for retirement. If you plan to retire at 65, this potentially means you have 15 years or longer that you could actively save. Time and compounding could still work for you over this time period through investing in good quality investments that pays a dividend
  • If you have investments in real estate these may be an option as well. Reverse mortgages may become one of the funding options for people in retirement

How Active Do You Need To Be In Managing Your Retirement Savings

  • There is no right or wrong approach to managing your money. Some people are very active in managing their investments and others take a more reserved approach
  • Pattie does caution however to not take on more risk if you are behind in your retirement savings. If you are investing to supplement your lifestyle or do it as a hobby that’s fine if you can afford to take a certain amount of money aside and see what you can do with it. However if it’s money that will be needed to fund your retirement and you lose it, you can’t replace it as time is not on your side

Financial Discussions With Your Family

  • Having a conversation with your family about your financial situation is helpful. This offers the opportunity to have full disclosure as to your situation
  • If someone has Power Of Attorney, they need to understand the full situation and what their plans and hopes are of the person they are supporting
  • The big wildcards in retirement are running out of money, inflation, living too long and the money you may need for long term care facilities (which many have not factored into their retirement plans)

Pattie also strongly recommends that you “never, ever, ever abdicate responsibility to someone else for your entire financial future“. She suggests that you owe it to yourself to ask the tough questions, be present and understand what your money is invested in no matter whether you decide to invest yourself or have someone else manage it for you.

This information is provided for informational purposes only. You should consult with a professional for specific advice pertaining to your personal situation.

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Susan Williams is the Founder of Booming Encore. Being a Boomer herself, Susan loves to discover and share ways to live life to the fullest. She shares her experiences, observations and opinions on living life after 50 and tries to embrace Booming Encore's philosophy of making sure every day matters.