Tags: Updegrave | retirement | finances | savings

Behind in Retirement Finances? Boost Your Savings, 'Put in a Few Extra Years on the Job'

By    |   Friday, 17 April 2015 09:00 AM

You've undoubtedly seen many of the studies showing that we aren't financially prepared for retirement.

If you're in your mid-50s to early 60s, you should have six to nine times your salary in your retirement accounts to maintain your present standard of living, says Walter Updegrave, editor of RealDealRetirement.com

So what can you do if you're falling short of that?
  • "Ramp up your savings rate," he notes. "Many people look for an investing solution to bail them out," such as a hot stock. "But that can backfire, leaving you worse off." A better strategy: "maintain a moderate investing stance — keeping, say, 40 to 60 percent of your savings in stocks —and focus on finding ways to save as much as you can."
  • "Put in a few extra years on the job." That allows you to save more money for retirement, and it allows you to continue your current standard of living without drawing down your retirement assets. It also allows you to delay receiving Social Security benefits, which increases your ultimate payout.
As for proof that we're behind in retirement planning, a survey of Americans 55 or older by Financial Engines, an investment advisory firm, found that 68 percent admit to procrastinating on retirement planning.

Respondents on average said 25 is the right age to start retirement planning. But on average they waited another 10 years beyond that.

The study listed the top five reasons respondents cited for procrastination.
  • Stress (mentioned by 50 percent of respondents)
  • Higher priorities (40 percent)
  • Worried about being taken advantage of (24 percent)
  • Unsure how to go about it (23 percent)
  • Too difficult (20 percent)
And how much will procrastination cost you?

Under a typical scenario, "savers starting at age 35 would have to save 11.69 percent of their salary to catch up to a 25 year old saving 6 percent of salary," the study states. "A saver starting at age 40 would need to save 16.44 percent to have the same amount at age 65."

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
If you're in your mid-50s to early 60s, you should have six to nine times your salary in your retirement accounts to maintain your present standard of living, says Walter Updegrave, editor of RealDealRetirement.com.
Updegrave, retirement, finances, savings
333
2015-00-17
Friday, 17 April 2015 09:00 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved