5 Things to Do Now if You’re Worried You Don’t Have Enough Saved for Retirement

79% of Americans believe there is a retirement crisis among us. More than half of Americans do not think they will achieve financial security in retirement posing fears for those nearing the golden years. These fears are common and very real causing people to ask, “How do I work toward financial security with the time I have available?” Let’s explore ways to feel in control of your retirement outlook and concrete steps you can take to make progress.

Get Your Bearings

The fact that you are thinking through retirement savings is a huge success. Having some funds in retirement is always better than having nothing. Let’s start by giving yourself compassion and credit for prioritizing a retirement focus now. Understand that you always have some options available to you to move toward your goal. Start by gathering your current retirement savings and identifying an attainable goal.

Evaluate Spending You Can Control

To evaluate this, identify which elements in your financial picture can be adjusted. From current spending to your time, and even existing resources, skills or assets. Determine where you can be flexible and start building from there. From downsizing your home to dialing in on retirement options, making progress can look different for everyone. Also, remember retirement doesn’t have to be black and white. Easing into retirement by phasing out hours slowly is one way Americans are taking control of their retirement plan.

Narrow Your Focus

Sometimes, especially in later years, our income can be spread across so many variables. It can be beneficial to set a specific duration of time and dedicate the focus to future savings. Doing this creates a snowball effect that is not only financially beneficial but also psychologically advantageous. By taking small steps towards your goal, you build confidence in yourself and your ability to save.

Review Budget + Income Increasers

Finding room in your budget and then increasing income is a good recipe for increasing retirement savings. Here are a few ways to do this:

• Part-time Jobs & Side Hustles: A part-time job or side hustle provides extra funds but could also have other psychological benefits to your life. Maybe you’ve always wanted to work at a flower shop or are really into research. Consider taking on a part-time role doing something you love for financial and mental benefits.
• Cut Costs: To free up income in your household, cutting costs may be necessary. The first step is to get on a budget that works and review expenses. Cut anything that isn’t essential and use that extra cash toward retirement savings. Sometimes simply naming categories helps organize your funds which opens up retirement saving avenues.
• Annuities: If you are feeling extra anxious about the amount saved for retirement, an annuity could be a beneficial option to consider. An annuity provides a steady stream of income with a variety of payout types. Some use annuities as a way to ensure a certain amount of paid-out income in retirement.
• Catch-up Contributions: Catch-up contributions are another way to maximize retirement savings. There are certain contribution limits in place that could inhibit someone from supercharging their retirement accounts later in life. Catch-up Contributions combat that by allowing those who are 50 or older to contribute a higher amount than those at a younger age.

Talk to Someone

Confiding in a safe and educated person can help bring peace and direction to your retirement journey. Consider a financial coach or advisor to help guide progress. Taking action can help with worrying about the future, so don’t wait to make a plan and start executing today.

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