Worried that you’ve fallen behind with your retirement savings? It’s not too late to make up for lost time. Even if you have neglected retirement planning in the past, you can seize the moment and get your retirement savings in play again.
Start with an honest assessment of where you stand now. If you haven’t set a retirement savings goal, take the time to do it. Estimate how much annual income you’ll need to live comfortably after you retire. Sources other than your savings, such as Social Security, may provide some of that income. Your goal is to build up enough savings to cover your remaining income needs for all the years you expect to be retired.
Next, look at how much you have already saved for retirement and try to estimate how much that balance might grow between now and your retirement. Then, focus on making up that difference.
It may require you to do without certain things now in order to put money away for your future. Try to maximize your plan contributions each year. If your plan allows catch-up contributions, consider making them once you’re eligible. To learn more about how much you can contribute and what your investment options are, check the information your plan provides.
The content of this article is for educational purposes only. To the extent that this material concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Readers should seek advice from a qualified professional.