The most effective way to build a retirement cushion after a late start is a combination of being aggressive about saving money, putting off retirement and taking Social Security as late as possible.The place to start is by being aggressive about saving. More is always better, but even relatively small amounts of money can make a difference. And with the kids out of college and hopefully out of the house, being disciplined about budgeting and potentially downsizing a home sooner rather than later could free up helpful amounts of money from each paycheck.
The other big boost can come from delaying retirement. Putting off retirement allows more time to save, more time for those savings to grow and fewer years of retirement to cover with savings.The benefit of delaying retirement can be magnified by holding off on taking Social Security benefits until age 70.
“Even a few years can make a huge difference,” says Yan Zilbering, an analyst in Vanguard’s investment strategy department.Where the real leverage takes place, however, is the combination of increased savings and delayed retirement.Boosting that savings rate also provides a cushion should plans to retire later not pan out because of involuntary job loss or health changes. Read the article to learn.
Read about this in Tom Lauricella article in the Wall Street Journal Star at http://online.wsj.com/article/SB10001424052970204012004577070421181765932.html?mod=rss_Retirement_Planning
William Wombacher, your Central Illinois Certified Elder Law Attorney (CELA) and Social Security Disability Specialist. I’ll help you! www..wombacherlaw.com
Serving Peoria, East Peoria, Pekin, Dunlap, Chillicothe, Morton, Washington, Metamora, Canton and surrounding cites and counties of Peoria, Tazewell, Woodford, Fulton and Knox in Central Illinois.