Are you in your 40s and worried that you have not started saving for your retirement? Indeed, being in this situation can be scary but what you have to know is you are not alone. You just have to prepare for it this time and act now.
Here are the steps you need to take:
Create a retirement plan.
First, you have to decide when you plan to retire. Most people find the age of 65 the ideal time to retire. In your case, you might want to extend this several years longer. Next, you have to plan how much money you need to live happily and comfortably in retirement. This includes a rough estimate of your annual expenses. Last, check how much money have you saved so far. Once you have the figures, you will have an idea how much you need to save.
Cut down on your expenses.
Now is the time to reconsider your lifestyle and reduce your living expenses. This does not mean, though, that you have to deprive yourself of your basic needs and some perks like traveling once in a while on a budget. Also, if you live in a big house with your wife, you might want to downsize and move to a smaller home. Sell your house and add the extra cash to your savings.
Increase your earnings.
If you are currently employed, you can ask for a raise or work harder to get a promotion. Or, this might be the time for you to look for a better paying job. You can also have a second income like working online during the weekends. What is important is to think of ways to augment your current income and set aside your extra cash for your retirement savings.
Of course, you can also adjust your retirement contributions and add to what you have been paying. By following these steps, you are on your way to saving for retirement even when you are in your 40s.