A lot of people get a later start in life when it comes to saving. It’s human nature that most people don’t even think about it until they turn 40.
But if your retirement plan consists of being wheeled out of work on a gurney straight to a funeral home because you’re working right up to your last breath…well, maybe it’s time for a rethink!
We went through two generational cycles where people were able to retire at a younger age, relative to their lifespan, than at any time in history.
Some people were calling it quits in their 50s because they had a pension and then Social Security later in life. So they never had to work another day in their lives.
Today, though, pensions are mostly gone and people are not saving enough.
Saving for retirement when you’ve reached your 50s
If you’re getting a later start at saving, here are some things you’ll need to know…
Work longer than you expected if you’re able
In the past, it was very common to retire and take Social Security at 62. But for every year you wait after 62, you have a roughly 8% return per year on your Social Security lifetime benefit. So if you wait from 62 to 70, the amount that Social Security pays climbs dramatically.
If you are physically able and planned to stop working in your 60s, but you don’t have a lot saved, consider working as long you’re healthy — especially if you’re a woman likely to outlive her significant other or if you know you’re genetically blessed with longevity in your family.
You don’t want to outlive your money!