If you’re like many Americans, you may not be saving enough for retirement. In fact, according to a recent study by the Employee Benefit Research Institute, nearly one-third of workers have less than $1,000 saved for retirement.
But it’s not too late to make up for lost time. Here are three moves shared by Bill Schantz of Mid Atlantic Financial LLC that can help you catch up on your retirement savings:
1. Save automatically
One of the best ways to make sure you’re saving enough for retirement is to set up automatic contributions to your 401(k) or other retirement accounts. That way, you’ll never miss a chance to save, and you can gradually increase your contributions over time.
2. Invest for growth
If you’re behind on your retirement savings, you’ll need to take a more aggressive approach to investing. That means investing in stocks and other growth-oriented investments instead of bonds and other safer but slower-growing investments.
3. Make catch-up contributions
If you’re 50 or older, you can make catch-up contributions to your retirement accounts. For 401(k)s, the catch-up contribution limit was $6,000 in 2019. For IRAs, it’s $1,000.
Making these moves can help you get back on track with your retirement savings. But don’t wait too long to start saving. The sooner you start, the more time your money will have to grow.
Bill Schantz Explains Why You Must Plan for Retirement Early
There are many good reasons to start saving for retirement as early as possible. The sooner you begin, the more time your money has to grow. And the more money you have saved, the more options you’ll have in retirement.
For example, according to Bill Schantz, if you want to retire at age 65 and plan to live on a fixed income, you’ll need to have enough money saved to cover your expenses. If you start saving early, you’ll have a better chance of reaching your goal.
Another reason to start saving early is that it’s easier to save when you’re younger. When you’re just starting out in your career, you may not be making a lot of money. But if you start saving now, even a small amount can add up over time.
And finally, the sooner you start saving for retirement, the more likely you are to reach your goals. If you wait until later in life to start saving, you may not have as much time to make up for lost time.
Final Word from Bill Schantz
Retirement is the end goal for many people, but most people are unaware of the potential for saving early and making retirement moves early in their careers. You can save a lot of money and get a head start on your retirement plans if you focus on talking with financial advisors and learning about the best tips and tricks for saving money early on.
If you have plans of living a luxurious lifestyle in retirement or even to be comfortable on a fixed income after you pack your bags, it is best that you consider saving early for retirement. As Bill Schantz has explained, the earlier you start making moves for retirement, the better it will be for you in the future.