If you’re 50 or older, read on for some money moves you need to make once you’ve reached the early age of 50. If you’re already over 50, there’s still time to improve your financial security. Likewise, you still have time to make smart retirement planning decisions.
Now is the time to take stock of where you are in life and where you want to be in the future. When would you like to retire? (Some will answer tomorrow, while others may be planning to work forever). More importantly, it’s time to review your progress toward the retirement of your dreams – are you on track for financial freedom, or do you need to make drastic lifestyle changes now to make working in the future an option rather than an obligation?
Retirement may seem years away, but it will be here before you know it. Did you ever think you’d be 50? Between now and when you retire, the time isn’t so long when you realize that your retirement savings will probably have to last 30 years or more. Living to 100 is a great possibility for many people.
If you haven’t saved anything for retirement yet, catching up on your savings is not a lost cause, but achieving financial freedom and maintaining your lifestyle in retirement will be a real challenge. Retirement options and needs will vary from person to person, of course.
Separate financial needs from wants
It’s easy for things that were once luxuries to be considered necessities. While I don’t expect anyone to give up their iPhone when they retire, you may want to reconsider other “necessary” expenses.
Do you need to buy a new car every two years without a commute to work? If that new car meant you needed to work an extra year or two to pay for it, would you still “need” it? Maybe you could suffer through buying a new car every five years?
Freeing up your retirement spending plan money from all your day-to-day expenses could mean retiring early. Or maybe driving that cost-effective vehicle will allow you to get even more money in your travel budget. Which will bring you the most happiness and enjoyment?
If you’re behind, consider delaying retirement.
Working longer isn’t ideal, but it has the potential to dramatically increase your income security in retirement. Some of you may benefit from working an extra year. You may want to consider delaying retirement a few years if you got a late start in planning everything.
A few extra years of investing with the help of compound interest can make a big difference when it comes to your retirement savings.