INSPIRATION – RICH C

Reaching your 50s without adequate retirement savings can be scary. The natural question is – is it too late to catch up? The good news is that while you may have to work harder than someone who started younger, there are absolutely steps you can take in your 50s to ramp up savings and set yourself up for a comfortable retirement.

• First, take stock of where you stand today. Calculate your current retirement savings balance and use a retirement calculator to estimate how much income that could provide in your later years. Be realistic about your life expectancy and projected living expenses. This will show how big the gap is between your needs and your current savings.
• Next, brainstorm ways to dedicate more money toward retirement savings now. Can you cut back discretionary spending to free up several hundred dollars a month? Downsize your home to reduce housing costs? Pick up a side gig for extra income? Look for big and small changes to generate more savings. 
• Maximize your 401(k) contributions going forward. Take advantage of catch up contributions – in your 50s you can contribute $26,000 annually plus an extra $6,500. Automate increasing your savings rate 1% every 6 months until you reach the cap.