They say life begins at 40, which means when you turn 50, you must have lived a little. And when you’re on your way to retirement age, it’s time to check on your retirement plan.
But what if you do not have a lot of retirement savings by then? Perhaps your savings were paralyzed by a major medical procedure when you were younger. Maybe you were the breadwinner of the family. Maybe you got married early and became a provider at a young age. Perhaps you did not take saving seriously until you reached your 50th birthday and saw your empty coffers.
Before you panic that it’s too late for you, you should know that you can still get your act together and enjoy a fiscal safety net by the time you retire. Here are some tips to get you started on your retirement savings at 50, so you will have financial freedom by the time you’re 60.
1. Keep calm and start saving ASAP.
Do you know how much you need to save up? Insurance company websites now come with comprehensive calculators to help you find out how much you need to save for retirement. FWD Life Insurance also allows you to factor in lifestyle considerations, such as when your children should be able to support themselves. This helps you plan better.
Don’t be overwhelmed by the numbers you will see there. Panicking will do you no good. Instead, use them as a motivation to streamline your future, while you still have time and while you still can. Compute how much you need to be saving every month. Just keep calm and start depositing that extra cash into your bank account NOW.
2. Scale down your expenses.
If you’re catching up on your retirement plan, make up for lost time by reconsidering your monthly bills and other expenses. Start putting more money in your savings account than towards paying utility companies. When paying for your credit card dues and other debts, remember to pay yourself first by depositing to your account before paying others.
Assess which aspects of your lifestyle you and your family may need help with. What are items that you continue to pay for that you may not need? Learn the difference between needs and wants, so that you can be the wise spender and smart saver you want to be.
3. Work extra hours or do part-time jobs.
With all those bills, you may be wondering how you can save up enough money especially if you're planning to retire soon. If you feel that you are performing well, maybe it is time to ask for a raise. If this is not granted, maybe you can put in more time at work. You can also take on part-time hustles so you can reach your monthly quota of savings.
4. Exercise smart investing.
Once you have saved a sizeable amount, investments are a great way to augment your retirement plan. Life insurance or a health plan such as Set for Health may be one of the things on top of your list. Insurance companies like FWD Life Insurance have options you can complete in five to 10 years, such as the Set for Life plan. The timing falls in line with your retirement.
Aside from that, try investing your money in plans that can make your money grow. Why not put your money in funds managed by banks or insurance companies? Life plans such as All Set Higher lets your investment double without the trouble of managing these stocks by yourself. You can just sit back and rake in the passive income.
5. Get professional help.
It is understandable to feel overwhelmed by the sheer effort it will take to put your retirement plan in motion. If you need assistance, some people can guide you through the process. You can contact a financial planner to get professional advice on how you can catch up on your retirement savings at 50.
Remember, if there is a will, there is a way. After working for almost half of your lifetime, you deserve a much-needed break too. Rewards are sweeter if you earned them on your own, without being too dependent on your children or your employer. Everyone can attain financial freedom. You can, too, if you start now.