Tips to Save for Retirement for Every Age

About half of baby boomers who think they are in good shape for retirement are not going to make it through retirement without running out of money.  Generation-Xers are not doing much better saving for retirement.  Last Saturday morning in an interview on KARE 11, I discussed tips for each decade to get you ready for retirement. 

I’ll share those tips below.  But first, here’s some startling statistics from the Employee Benefit Research Institute. After 10 years of retirement, 13-percent of people in middle-class ($31,200-$72,500 annual income) are likely to run short of money.  And after 20 years, 29-percent of middle-class income earners will not have enough money in retirement.  When we talk about running out of money, we’re not talking about not having the money for luxurious vacations, we’re talking about not having money for basic needs like rent or mortgage, food and basic health care.

It also looks bleak for the top half of income earners in this country ($72,500 plus annual income).  After 10 years of retirement, 5-percent will likely run out of money.  And after 20 years of retirement, 13-percent will likely run out of money. 

So start planning for retirement as early as possible.  Here’s some tips for you, no matter your age.   

 If you’re in your 20s:

• Get in 401(k) plan early or IRA
  • 90-percent of retirees regret not putting money into a 401(k) earlier in life
  • If you work for a company with a retirement plan – do not opt out,  join!  If this isn’t an option for you, open an IRA account.
  • People who work for employers who have a retirement plan tend to do much better. On average, the risk of running out of money drops to 20-percent if you are in a 401(k) – that’s huge.
• Conquer credit card debt and never have it again!

If you’re in your 30s:

• Get rid of your college debt
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  • Many 30-somethings are becoming homeowners, getting married and having children – make sure to insure your assets.

If you’re in your 40s:

• Avoid digging into retirement savings account for children’s expenses
  • Many people have a lot of big expenses in their 40s for their children such as paying for kids’ college tuition or a kids’ wedding, but make sure not to dip into your retirement account to pay for these expenses.

If you’re in your 50s:

• Get serious about getting everything paid for – your home, your vehicles, your boat and all your fancy toys.
• Diversify your savings.  I visit with people come in my office that have invested 100% of their retirement savings invested in company stock.  This really scares me.  Make sure that you have money set aside in several different buckets.

If you’re in your 60s:

• Meet with a retirement planner to craft a retirement plan if you haven’t already done so.  Secured Retirement Advisors has a retirement checklist on our website that you can utilize.
• Stay in the workforce and add to your savings until you can afford not to work.
• Social Security benefits: Make a plan before you elect and it could gain you potentially thousands of dollars.

If you’re in your 70s:

• Develop an Estate Plan if you haven’t already done so.

Each age and stage employs a different strategy in preparing for a secure retirement. If you have any questions about the longevity and security of your own retirement plan, or if you would like a complementary “3 Step Review” of your own retirement plan, call Secured Retirement Advisors at 952-460-3260.  Feel free to visit us at www.securedretirements.com and help yourself to any of our free, down-loadable educational materials.