MANY Americans have retirement at the forefront of their minds and worry they won’t save up enough money in time.
While it may be possible to live modestly off of Social Security, seniors would enjoy a more comfortable lifestyle with money saved.
A woman named Margeret C. described her and her husband’s sticky situation to Ramsey Solutions.
“I am 60, and my husband is 63. He has a small retirement fund; I have none,” she said.
She told famous financial guru Dave Ramsey that her job doesn’t offer any retirement programs.
“My husband’s employer does have a matching program, which we have maxed out,” she said.
“We are out of debt except for our home.”
While it’s easy to kick yourself for not saving sooner, there are more effective actions to take.
Ramsey provided useful tips for Margeret to consider.
HOUR POWER
He told Margeret she and her husband could start saving more immediately since they’re not in dire need of debt help.
As long as their health is in good order, continuing to work full or part-time jobs would be an effective strategy to build savings.
Working longer essentially reduces the number of years a person needs to be living off their savings.
You can start receiving Social Security retirement benefits as early as age 62.
But some people hold out later to get more money from their Social Security benefits.
HOLDING OUT
The maximum benefit if you retire at age 70 in 2024 would be $4,873, according to the Social Security Administration.
If you retire at age 62, your maximum benefit would be $2,710.
Mr. and Mrs. C could contribute up to $23,000 a year to their 401k accounts by prolonging employment.
A 401k plan differs from an IRA, which isn’t sponsored by employers.
Both income retirement plans can provide financial cushions in place of pensions, which are only offered for certain jobs and industries.
So committing more labor hours enables someone to contribute more funds to whichever plan they have in place for the future.
Since the only outstanding loan they have is for their home, Ramsey said Mr. and Mrs. C can consider selling it for a smaller space.
Sometimes downsizing on property can free up more dollars in the long run.
The U.S. Sun offers more perspectives on all kinds of unique retirement situations.
Find out how a 61-year-old found a retirement solution in their tractor.
And a resourceful 4% rule can help you retire in a decade with $3,000 saved.