Let me ask you something.
Remember when retirement seemed so far away?
When we were in our 20s and 30s, we thought we had plenty of time. We were raising children, paying bills, buying homes, and trying to keep everything together.
Retirement? We'd worry about that later.
Well, guess what?
Later is knocking on the door. And for some of us, it's already standing on the porch.
Here's what nobody really talks about.
You can work hard your entire life, make decent money, pay your bills, and still find yourself approaching retirement wondering if you've saved enough.
And that's a scary feeling.
Especially when you realize getting older doesn't mean the bills stop coming.
The mortgage company doesn't care that you're retired. Groceries aren't suddenly free. And let's not even get started on healthcare.
So today, let's talk about what you can do if retirement is getting closer and your savings aren't where you'd like them to be.
1. Stop Guessing and Look at Your Numbers.
Before you start worrying about retirement, find out exactly where you stand.
Log into your 401(k). Check your retirement accounts. Look for money you may have left with previous employers.
How much have you saved? How much are you contributing? And how much will you need each month when you stop working?
While you're at it, visit SSA.gov and check your estimated Social Security benefits.
You might not like every number you see.
That's okay.
I'd rather you know the truth today than be surprised five years from now.
2. Stop Leaving Retirement Money on the Table.
Now, this might step on a few toes.
If your employer offers a 401(k) match and you're not contributing enough to receive the full match, you're potentially leaving part of your employee benefits behind.
And if you can afford to increase your contribution by even 1%, consider doing it.
Here's something else. Once you turn 50, the IRS generally allows additional retirement contributions called catch-up contributions.
No, these changes won't magically fix everything.
But doing nothing certainly won't fix it either.
3. Don't Assume You Have to Retire at 62 or 65.
Who said everybody has to retire at the same age?
For some people, retiring early is the dream. For others, working a few additional years may make a real difference.
You could have more time to save, fewer years to stretch your savings, and potentially a higher monthly Social Security benefit if you delay claiming.
But don't make that decision because your neighbor retired or somebody on Facebook said you should.
Run your own numbers.
Your retirement should fit your financial situation, your health, and the life you want to live.
4. Please Don't Chase a Miracle Investment.
When people realize they're behind on retirement, sometimes they start looking for ways to catch up quickly.
Somebody has a stock that's supposedly going to triple. Somebody else has an investment that's guaranteed to make you rich.
And suddenly you're thinking about risking money you cannot afford to lose.
Please be careful.
There's nothing wrong with investing. But understand what you're investing in and the risks involved.
The goal isn't to get rich overnight.
The goal is to have money you can depend on when you're no longer working.
5. Do Something This Week.
I don't want you to read this article, feel motivated for five minutes, and then go right back to doing nothing.
Before this week is over:
· Check your retirement balance.
· Review your 401(k) contributions and employer match.
· Look up your Social Security estimate.
· Find one expense you can reduce and redirect that money toward retirement.
· Set one realistic retirement savings goal.
You don't have to do everything at once.
Just start.
A Final Thought
You know what concerns me?
It's not just that some people haven't saved enough for retirement.
It's that so many people are afraid to even look at where they stand.
We've spent years working, raising families, and taking care of everybody else. Then one day we look up and realize time has moved a whole lot faster than we expected.
But your retirement account isn't a report card on your life.
It doesn't measure how hard you've worked or how much you've sacrificed.
It's simply a number that tells you where you stand today.
And once you know where you stand, you can start making better decisions.
Maybe you'll work a little longer. Maybe you'll downsize. Maybe you'll have to change a few things.
That's life.
But retirement is coming whether we're financially ready or not.
So, here's my question for you:
If you stopped working five years from today, would your money be ready?
Don't just think about the question.
Do something about the answer.
And remember,
Be the reason that someone smiles today.
You be the reason that someone smiles today.
Ophelia Brown
Financial Literacy Advocate | Author | Content Creator
Founder, OCB Accounting & Financial Services
Author of I Can Learn I Just Learn Differently
Columnist, Wallet Wisdom with Ophelia
Website: www.ocbaccounting.com | www.ilearndifferently.com
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Financial education only. Retirement and investment decisions should be based on your individual circumstances.