Feel like you’re unprepared for retirement? Don’t worry. You’re not alone. A recent Gallup study found that more than 50 percent of Americans are worried that they won’t be able to fund their retirement. In fact, retirement is America’s top financial worry.1
The good news is it’s never too late to develop a plan and take back control of your strategy. Of course, before you can take action, you need to identify areas for improvement. Below are a few red flags that could indicate you’re not as ready as you should be. If any of these sound familiar and you’re approaching retirement, now may be the time to take action.
A budget can be one of your most valuable financial tools as you plan your retirement. Your budget can help you plan your required income and make smart buying decisions. Unfortunately, most Americans don’t use a budget. According to a study from U.S. Bank, only 41 percent of American households rely on a budget to guide their spending.1
Even if you don’t use one today, there’s nothing saying you can’t change that habit in retirement. However, you may find it difficult to project your future expenses. After all, you can’t predict the future. You can, though, use your current expenses and your plans for retirement to develop an accurate estimate of your anticipated spending.
Are you getting a late start on your retirement planning? If so, you have company. According to a recent study from the Economic Policy Institute, the average family between the ages of 44 and 49 has only $81,437 saved for retirement. That number is $124,831 for those between ages 50 and 55 and $163,577 between ages 56 and 61.1 While those numbers might represent a good start, it’s fair to say they’re not sufficient to fund a long retirement.
The good news is it’s never too late to start saving for retirement. You may have to make some adjustments to your plans and vision, but with some discipline and focus, you may still be able to fund an enjoyable retirement.
It’s a new year already. For many, that means it’s time to implement resolutions and strategies for self-improvement. Weight loss and fitness goals are popular resolutions. So, too, are goals related to education and career advancement. Unfortunately, nearly 80 percent of all resolutions fail by February.1
This year, consider adding some financial resolutions to your list. With some simple changes in habit and behavior, you can significantly improve your financial picture. The key, of course, is to stay consistent and stick with your resolutions.
Below are three financial resolutions to consider, along with tips on how to stay committed. If you’re worried about your financial picture, make 2018 the year you take action.