Didn’t Save For Retirement Right After College
“Happy 40th Birthday mate!!!”
The only thing which you can hear from your friend’s cheerful wish is the number 40? Wow, time flies so quickly. Your workdays are about to get over after a decade or two and post-career life is not so distant in future. You think it’s high time to start saving for retirement days. Opss! You are wrong. You should have started saving for your retirement life right after your college!
Now what can you do with the retirement on your doorstep and you don’t have enough money to maintain your standard of living throughout your retirement? There are still some moves you can make to improve your retirement accounts:
Considering on prolonging your career can improve your retirement days. The later you retire, you are able to save more, and that savings you gather, will get more time to grow which will significantly stretch the size of your egg nest at retirement.
Get A Part Time Job:
The longer you can escape pulling out money from your nest egg; your savings stash will get more time to grow to help you throughout your post-career life. But, just because you want to work longer does not means that you will be able to. Sometimes, health issues become a hindrance or having to take care of a family member becomes your obligation. On the other hand, if full time work is not an option for you, still you can opt for a part time job, maybe something like tutoring, consulting, or turning a hobby into money making business. You may don’t have lot of money to invest but probably you have a lot of experience.
Don’t Take Outsize Risks:
Some people make mistakes in hopes that an additional investment strategy will boost the final size of their nest egg. Hence, if your nest egg is smaller than it should be, don’t be tempted in doing investments to make up for the lost time. The problem is, maybe the potential returns are higher, but your risk tolerance is also potentially low. Your risk is always aligned with your age. People in their early twenties can stand big loss since they have more time to recover however, people who are near to their retirement age cannot. Therefore, an aggressive approach towards investments is definitely not an appropriate option.
Consider Cutting Off Your Lifestyle:
It sounds and feels wonderful to have PKR 1 million in your account during retirement life without going through any compromises. But that’s not possible for everyone. Therefore, you have to find ways to supplement your nest egg.
Do everything you can to save your money; this is the most obvious stand you have to take. Clearly late savings will not be enough if compared to the savings you had been doing during your entire career but, certainly it will be somehow better in making your retirement life comfortable rather than having little or no savings at all.
How can you start saving your money?
- By redeeming the credit card rewards and discounts. For more information click on https://www.karlocompare.com.pk/credit-cards for exploring credit cards and their offers.
- Cutting the budget by forming new habits. For example: avoiding weekly dinners in expensive restaurants or take away.
- By saving on lifestyle expenses. For example: if you are living in a home which is bigger for you then by downsizing it and moving to a less expensive home may help you push more money in your nest egg.
- By buying insurance policies: At time you are hit by calamities and all your savings can go down the drain at once. Nonetheless, they can be saved if you already have a relevant insurance policy (health, auto, house, etc.). For more information about different insurance policies and guidance click on https://www.karlocompare.com.pk
There may be other moves for your specific financial situation which will be more helpful for you in saving and flowing money into your retirement accounts before you retire. Contacting a financial planner will certainly help you in moving the right direction.