Not having enough for retirement. It’s a real concern for many people. In our recent survey1, over 65% of respondents were concerned about not having enough for their retirement years. A recently released study from the Employee Benefit Research Institute suggests that nearly half (47%) of “early boomers” -those between the ages of 56 and 62 - could run out of money in retirement. Thankfully, there are practical and creative ways to prevent this from happening.

1. Stay healthy! - What does your health have to do with avoiding underfunding? Lots!! In retirement, you’ll need to make your savings last as long as possible. Long-term care costs for chronic illnesses can rapidly deplete your retirement savings, leaving you underfunded. In 2009, it cost $198/day for a semi-private room in a nursing home - That's over $72,000 a year! Staying healthy will keep your money in your account! (If your health will be an issue, consider buying long-term care insurance.)
2. It’s all in your perspective! - Reconsider how you want to live and how much is really enough! Where can you simplify your lifestyle or downsize to create the retirement of your dreams where your funds will last longer than by living an extravagant lifestyle? A simpler lifestyle will cost less, causing your savings to last longer. If you’re married, talk about it with your spouse and then agree on what you want retirement to look like.
3. Earn supplemental income - Can you delay retirement during your highest income-earning years? In retirement, can you get paid for doing your favorite hobby? Could you work part-time in an area of expertise that would earn extra income? Be creative and think outside of the box!
4. Save as much as you can, starting today! - First, make sure you are enrolled in your employer’s retirement plan and contributing enough to receive the full match, if available. Second, do a reality check: add up your expected income and expected expenses in retirement. If your income is lower you're your expenses, you’ll need to increase your savings or have a way to supplement your income. And, don’t forget to factor inflation into the equation. What is enough today won’t be in 30 years. Third, determine what you will need to retire and then commit to saving a regular amount each month. Consider it an investment in you – today – for your future peace-of-mind.
5. Pay off your debt as soon as possible - Spending your income servicing your debt reduces the amount you have to live on. Your debt is preventing you from saving as much as you could. If you have credit card debt, set a goal to get it paid off and then make it happen. If you have a mortgage, pay that off next. As soon as your debt is eliminated, you can put that additional money toward your retirement savings.

The bottom line to all of the above can be summarized as follows: stay healthy, spend less, save more, and simplify your retirement lifestyle expectations.

As always, we’re here to provide Trusted Advice Along The Way to you. If you need any assistance, contact us at (888) 879-1376, option 1, by email , or online .

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