It’s Not Too Late to Start Planning for Retirement

Have you recently retired without a comprehensive financial plan to take you through the coming years? It’s not too late to make one. A December 2013 survey from Fidelity found that more than half of Americans are at risk of not covering their essential expenses in retirement. PwC reported similar findings on its 2013 survey of financial wellness indicating that one in four Americans have borrowed from their retirement savings to pay for expenses other than retirement. If you are finding yourself unprepared or less prepared than you had planned, there are still options that can help, and it’s not too late to make some changes that will improve your retirement outlook for the future. If you have not yet retired: Increase savings. By identifying spending that is not necessary or can be reduced, you can add to savings on a weekly or monthly basis, even in small, doable increments. “For younger people especially, the single most powerful step is to increase savings,” Fidelity says in its advice toward improving retirement preparedness. This can be done through 401(k) plans or any mechanisms made available through your employment, or outside of it. Work toward paying off debt. Using income while you still have it to pay off debt is much preferred financially than waiting until you need to rely on savings to pay it off. Review your asset types and mix. Having your retirement savings in the right investments for your own personal situation is critical and can mean the difference between a secure retirement and running out of money.  Explore these asset allocation resources. If you have already retired: Return to work part time. Especially if you are working to pay off debt, returning to work part time can help boost cash flow. According to Fidelity’s Retirement Savings Assessment survey, 50 percent of households plan to have at least one person working in retirement. Realize home equity. Your home equity may be able to work for you in a number of ways. You may be able to downsize and realize the gain on the sale of your home. You may also be able to tap into your home equity in the form of a reverse mortgage, allowing you to receive ongoing payments from your home equity or to access a line of credit that increases over time. Use a reverse mortgage calculator to see how much you may qualify to borrow. Explore other options. There are other financial products available to help you start the planning process, even if you are already retired. It’s never too late to consult an expert on how you can better position yourself for a successful retirement. Get started right away with the Boldin Retirement Calculator — an online automated comprehensive resource.  We can also match you to a financial advisor for a free initial consultation.