The Clock Is Ticking Retirement Planning Later In Your Career

The Clock Is Ticking: Retirement Planning Later In Your Career

Summary: Are you ready for retirement? Sure, youre mentally prepared to leave the everyday rat race, to throw your alarm clock in the garbage, and to spend your days doing whatever you so please. The question is: are you ready financially? If youre like most Baby Boomers, the answer is probably no.

A recent study by the Employee Benefits Research Institute showed that over percent of workers ages to have less than $, saved for retirement. The Center for Retirement...

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Article Body: Are you ready for retirement? Sure, youre mentally prepared to leave the everyday rat race, to throw your alarm clock in the garbage, and to spend your days doing whatever you so please. The question is: are you ready financially? If youre like most Baby Boomers, the answer is probably no.

A recent study by the Employee Benefits Research Institute showed that over percent of workers ages to have less than $, saved for retirement. The Center for Retirement Research (CRR) at Boston College completed a study that showed nearly percent of low-income Baby Boomers born between and are at risk for missing their retirement savings goal. Research by Fidelity Investments shows that most Baby Boomers have enough saved for retirement to replace just percent of their full-time working income. The numbers dont lie: most Boomers are not ready to retire, regardless of what they think.

But all is not lost. Its never too late to start planning your retirement. However, the closer you get to retirement age, the more aggressively you need to save. Its also possible that you might have to work a few years longer than you thought you would, or pursue money making ventures outside of your life-long career.

Okay, say youve hit the big -. Retirement is suddenly not such a far off proposition, but a short-term reality. In no way are you ready financially, so its time to buckle down. The first thing you need to do is take a good, long look at that (k) of yours. Max it out. Thats right, make yourself a budget and sacrifice if you must, but find every last available dime and pump it into that fund. It deserves your attention. Thankfully, theres something called a catch-up provision that was created for people just like you. It allows people and over to add an additional $, to their (k) over the maximum allowed by law in . Not bad. For IRAs, you can contribute up to $, per year as a catch-up in . Do it. Itll be well worth it.

Once youve maxed out your retirement funds, take a look at your personal budget. Sit down and find out where all your money is going, and where you can save. Pay off high-interest credit card debt as fast as you can, refinance car or home loans, phase out your more expensive habits or hobbies; do whatever it takes to save a few extra dollars per month towards your nest egg.

Also, dont rule out working a few more years. Many people love their jobs, have friends at work, or enjoy being part of the everyday work force. If you dont have grand plans of jet-setting around the world during your golden years, then theres nothing wrong with punching the clock for a little while longer. Itll give you something to do while definitely sweetening the pot when you do decide to retire. Done with working for the man? Then consider taking something part-time or even launching your own start-up. It could be something youve always been interested in, but never had the time or drive to actually do. Who knows, it could be something you make money on and will enjoy well into retirement. Nothing wrong with that.

However you choose to build your long-forsaken nest egg, dont wait a minute longer. When it comes to saving for retirement, time is money.