| These strategies can help you get the tax-free income you want in retirement | | |  | WED, SEP 15, 2021 | | | | Retirement is and always will be a hot news topic.
Whether you are truly retirement ready or struggling to find ways to save, it seems the CNBC audience just can't get enough of the news we deliver on this topic each week.
When the subject of saving for retirement comes up, there's one key question people ask themselves more than any other: Will I outlive my money?
It's a fair question and it's one that has become important — especially for people in their 40s and 50s, who like most Americans aren't prepared for retirement.
A Federal Reserve report revealed that 25% of non-retired adults have no retirement savings or pension at all and that only 45% of non-retired adults over the age of 60 believe their retirement savings plan is on track. What's more, about 40% of Americans polled in a recent study believe it's "going to take a miracle" to be ready for retirement.
If you did not start saving at a young age or had to stop putting money aside during a time of financial stress, don't be discouraged. There is a light at the end of that seemingly dark tunnel.
If you're in your 40s or 50s and anxious about retirement, you can still build a retirement savings — with the right moves. And if you are in your 20s or 30s, the best thing you can do is start saving for retirement now, since your savings will have the benefit of compound interest.
It's really never too late or too early to develop a comprehensive financial plan that is aligned with your own goals. But it will take planning and self-discipline. Every little bit helps and it may take some baby steps.
The most obvious advice still applies: save more and spend less.
There's more to it than that, however. I spoke with some financial experts and here are some of their thoughts.
It starts by creating a budget to help you stay on track — and actually sticking to it. You can free up cash by reviewing your budget each week and eliminate any excessive spending.
Have you got credit card debt? If so, pay it down as quickly as you can to free up more cash to put toward savings.
If you have a retirement plan at work, contribute enough to get the maximum match offered by your employer. If you have a non-retirement portfolio or if you're self-employed and administer your own retirement fund, be sure to set up automatic investments so you can take advantage of dollar-cost averaging.
Also, you can delay that retirement. That carefree walk along the beach can wait.
People are working longer than ever before, and this can make a big difference in having enough retirement income. Delaying your retirement by three years from say age 62 to 65 can boost your assets by more than a third — thanks to the combination of making extra contributions to your employer-sponsored retirement plan, not taking withdrawals and allowing your funds more time to grow.
The bottom line is that there are a variety of steps and strategies you can implement today to help secure a happy retirement. It's never too early or too late to develop your retirement savings plan.
For more cool stuff like this, check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. | |
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