This one is for the over-40’s who are facing (or avoiding) the fact that they don’t have any retirement savings, or very little. I think this is one of the few times in history where you could admit to something like that, and the people around you would totally NOT be shocked. It’s been a rough several years on the economic front. Sometimes saving takes a back seat to, you know, EATING or PAYING RENT.
Still, retirement is coming sooner or later (sooner), and you have to do SOMETHING, right? So how do you catch up? Our old standby Clark Howard has some ideas, in an article entitled, “Over 40 with no retirement savings? Take these 6 steps.”
Here are the bullets:
- Crunch the numbers: How much are you going to need? What will your Social Security income be? Etc.
- Get aggressive: Start putting aside as much as you can, max out your 401K, etc.
- Play the catch-up game: If you’re 50, you can go well beyond the typical max on your 401K.
- Rethink your retirement plans: You might have to work longer than you planned to.
- Scale back as necessary: Obviously
- The best time to start saving is always now!
So, don’t panic, I guess. Just get real with yourself, and look this thing you have been avoiding straight in the eye, and start making some changes.