Saving for retirement is something most people should look to do no matter the age, but for older adults, it’s more pressing that they take stock of their finances.
If you’re unsure of where to start, financial and investing advice company The Motley Fool offers a few tips on how you can earn $60,000 a year after putting your full-time working days behind you.
Understand the needs of your retirement income
Inflation and Social Security are the two things soon-to-be retirees should take into account. The Bureau of Labor Statistics has an inflation calculator that can be used to consider rising prices when budgeting for post-work living. The Social Security Administration also provides calculators so you can estimate your benefits there, too.
Achieving your savings goal
Even after calculating for inflation and your Social Security benefits, you may find you still won’t have enough saved for retirement. A recent analysis found that on average, Georgians save $187,186. A survey by MoneyRates.com found that most Americans have not stashed enough income to have for their post-working days.
Estimate how much you need to reach your end savings goal by using a compound interest calculator. If you’re nearing retirement, you may have to downsize your lifestyle much like you might once you’re in retirement and on a fixed income. Taking advantage of senior discounts or downsizing could be some options.
Take saving seriously
The Motley Fool notes that casually saving will make it hard to earn $60,000 a year toward retirement.
“The most reliable way to create the retirement you want is to get serious about padding that savings account today,” it said.
To do that, future retirees can take full advantage of their company’s 401(k) matching program, according to CNN Money. Take that further by allowing automatic escalation to take place, according to U.S. News.
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