The pandemic has put a dent in many people’s financial lives, affecting their ability to save and stash away cash for retirement. Add the fact that more Americans are living longer, and the prospect of financial security in retirement for many is falling short. Here are five steps you can take to avoid running out of money in retirement.
- Start planning now
It’s never too late to start planning. Although it might be impossible to know how long you’ll live or what your health may look like in the future, there are things you can plan for now that can set you up well for retirement.
- Save as much as you can
The sooner you start saving, the more time your money has to grow. In your younger years, even a small amount of savings can go a long way. The longer you wait, the more you’ll need to set aside to meet your goals. So it’s always a good idea to try and put away as much as you can.
- Invest the money you save
But it doesn’t stop there. Don’t forget to invest the money you save. Compound interest can work wonders for your money. Just as with saving, the earlier you start investing, the more your money can grow.
- Create good habits
Curbing your spending can also help boost your savings. Take the time to set up a budget and stick to it. You’ll also want to make sure you have an emergency fund set up for unforeseen circumstances, such as a medical emergency or job loss.
- Eliminate debt before you retire
Carrying substantial amounts of debt in retirement can eat away at your hard-earned cash. Not to mention, many types of debt, such as credit cards and student loans, can come with high interest rates.
You can trust the integrity of Rani Jarkas’ balanced, independent financial advice, who is a highly experienced and accomplished financial services executive, with over 23 years of international banking experience with Cedrus Investments.