I just turned 57 years old. Unfortunately, I have a small savings account and no retirement plan in place. What can I do at this late stage in the process?
“Don’t give up on retirement planning, even at 57 years young,” said FPA member Heidi Davis, CFP®, MBA, of Columbia Financial Planning, LLC.
Davis suggests that you look into the following options:
- You may be entitled to Social Security. Consider reviewing/requesting your annual statement and find your monthly benefit.
- Consider working as long as you can. Then, consider part-time employment.
- The retail industry near you may have part-time jobs where perhaps you can work a second job, for example, only on Saturdays.
- If you have equity, consider selling and moving to a location with a lower cost of living.
- Look at your expenses and develop a budget for yourself. Determine a goal for a monthly deposit to your emergency fund and to your retirement savings.
- Do you have a retirement plan at work such as a 401(k), 403(b), 457 or Thrift Savings Plan? This may be a good option for retirement savings. Check to see if your employer matches your deposit.
- Look at what you own and think about possible sources of income. If you have an extra room in your house, consider renting it.
- Consider a fun second job that may be a hobby right now. If you like writing, maybe write for publishers that will pay you.
- Consider going on the Internet and looking for magazines or books at libraries that offer ideas on jobs for those that are 50 or older.
- If you can only save $10 monthly for retirement, save it. The saying is “A journey of a thousand miles begins with the first step.”
“Don’t look back,” Davis said. “Just look forward to where you’re headed. The options are as broad as your imagination.”