Articles of interest

FACT SHEET

It’s Never Too Late to Start Saving What to do when you start planning late

1. Save as much as you can, starting right now.

• Put it into savings plans that will give you a tax break – whether it’s your 401(k) plan at work or an Individual Retirement Account (IRA).

2. Reduce expenses.

• Focus on saving as much as possible.
• Put your savings first – resist giving gifts and money to your children, grandchildren, or other family members.

3. Plan to keep working longer.

• If you haven’t got enough in your savings or pension plans to support you in retirement, you may need to continue working, either full-time or part-time.
• Find out how much you can expect to get from Social Security and other income sources so you know when you can afford to retire.

4. Take a second job or work extra hours, and put as much as possible into savings.

• Earn extra money now, if you can, and save it for when you can no longer work.

5. Plan to start collecting Social Security after age 65, not before.

• Your monthly benefit will be higher if you can wait at least until age 65 or 67 or even 70. Find out what your benefit will be at each age.
• Once the benefit is reduced for early retirement, it stays at that reduced rate.

6. If you have equity in your home, find out about a reverse mortgage.

• AARP has information on reverse mortgages. Investigate whether this would be a good option for you.