Carstens Financial Group
  • Home
  • About Us
    • Pro-Am
  • Services
    • Retirement Income Strategies
    • Tax-Efficient Solutions
    • Investment Planning
    • Long-Term Care
    • Estate Preservation
    • Securities
  • Resources
  • Blog
  • Contact

Blog

Late Start to Retirement? 4 Tips to Catch Up

1/10/2018

0 Comments

 
Picture
​Have you put off saving for retirement? You’re not the only one. According to a recent study from the Economic Policy Institute, the average family between the ages of 44 and 49 has only $81,437 saved for retirement. That number is $124,831 for those between ages 50 and 55 and $163,577 between ages 56 and 61.1 While those numbers might represent a good start, it’s fair to say they’re not sufficient to fund a long retirement.
 
The good news is it’s never too late to get started. You may have to make some adjustments to your plans and vision, but with some discipline and focus, you may still be able to fund an enjoyable retirement.
Below are four tips to help you take fast action and overcome your retirement savings gap. If you haven’t implemented these steps or started your planning, now may be the time to do so. The longer you wait, the more challenging your retirement might be.

Estimate your savings goal.
Have you ever started a road trip without knowing your destination? Probably not. The same should be true for your retirement planning. You need to know your final destination before you can develop a strategy. In the case of your retirement plan, your destination is your savings goal.
 
Your estimated annual spending is a good starting point. Life is unpredictable, so you can’t precisely calculate your annual spending in retirement. However, you can probably generate a range or ballpark figure.
 
Next, calculate any income you can count on in retirement, such as Social Security or pension benefits. If your income won’t cover your expenses, you have a gap that will need to be covered by distributions from savings. Your target should be a savings balance that’s large enough to safely generate your needed income.

Downsize your retirement plans.
Your funding gap may be so sizable that it would be impossible to save enough money. Fortunately, you can also tackle your funding gap by downsizing your spending goals. If you reduce your annual spending needs, you can similarly reduce the amount needed to fund your lifestyle.
 
For example, you could consider downsizing into a smaller home. That could reduce costs such as your mortgage, maintenance, utilities and more. Look at things like dining out less or scaling back your travel plans. Even small spending changes can have a big impact over time.

Maximize your guaranteed* income.
As a late-starter, you may be working with a narrow margin of error with your retirement savings. Even if you do save enough to fund your retirement goals, you may not be able to withstand certain risks, like volatility with your savings or income.
 
You can minimize these risks by increasing your amount of guaranteed lifetime retirement income. Annuities offer several ways to create a stream of income that is guaranteed to last for life, no matter how long you live. You can then enter retirement with a reliable, predictable monthly income source in additional to Social Security and possibly a pension.

Increase your contributions.
Finally, the most important step you can take to funding your retirement plan is to save as much as possible. Make use of tax-deferred accounts like a 401(k) or an IRA. If you are under age 50, you can contribute up to $18,500 to a 401(k) in 2018 and as much as $5,500 to an IRA. If you are 50 or older, you can contribute an additional $6,000 to a 401(k) and $1,000 to an IRA.2 These additional amounts for older workers are called catch-up contributions, and they’re designed specifically for people who are off to a late start.
 
Ready to catch up on your retirement savings? Let’s talk about it. Contact us today at Carstens Financial Group. We can help you analyze your goals and develop a strategy. Let’s connect soon and start the conversation.

 
1https://www.cnbc.com/2017/04/07/how-much-the-average-family-has-saved-for-retirement-at-every-age.html
2http://time.com/money/4990121/401k-ira-contribution-limits-2018/
 
*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values.

Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
 
17190 - 2017/12/12

0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Kirt Carstens

    Carstens Financial Group focuses on providing comprehensive asset management, estate planning and life insurance solutions. Allow us to help you secure your financial future.

    Archives

    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014

    Categories

    All
    2020
    CARES Act
    COVID
    Economic Update
    Election
    Employer Plans
    Estate Planning
    Fed Chairman
    Financial Planning
    Fourth Quarter
    FRA
    Full Retirement Age
    Funding
    GDP
    Health Care
    Health Savings Account
    HSA
    Income
    Inflation
    Insurance
    Managing Medical Expenses
    Medicare
    Planning
    Portfolio
    Retirement
    Retirement Home
    Retirement Planning
    Retirement Strategy
    Risk
    Risk Tolerance
    Say Yes
    Social Security
    Stimulus
    Stock Market
    Supplemental Retirement Income
    Tax Planning
    The Market
    Working In Retirement
    Working Part Time
    Yes

    RSS Feed

Kirt Carstens, CLU, ChFC
Investment Advisor Representative
P: (712) 332-5960
F: (712) 332-5391

605 Hwy 71 S
Arnolds Park, IA 51331
Get Directions

Home     About Us     Services     Resources     Blog     Contact

This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation.

Securities and Advisory Services offered through CreativeOne Securities, LLC Member FINRA/SIPC and an Investment Advisor.  Carstens Financial Group and CreativeOne Securities, LLC are not affiliated.
​
This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional.  The statements and opinions expressed are those of the author and are subject to change at any time.  All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only.  It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. 

Check the background of an investment professional.  |  Privacy Policy
  • Home
  • About Us
    • Pro-Am
  • Services
    • Retirement Income Strategies
    • Tax-Efficient Solutions
    • Investment Planning
    • Long-Term Care
    • Estate Preservation
    • Securities
  • Resources
  • Blog
  • Contact