Is It Ever Too Late to Save for Retirement?

(DGIwire) – By the time a person reaches 50, their visions of retirement may start to loom large. But what if they haven’t managed to put away much money—or any at all? Is it too late to start saving in one’s 50s? Not at all, say members of the Silver Disobedience® movement—a large and growing group of men and women who are rebelling against ageism and living their life to the fullest. Their overall message? It is never too late to start saving!

“Look into developing an Investment Policy Statement (IPS), which is the financial equivalent of a road map or GPS for someone’s financial life,” says Robert R. Johnson, President & CEO of The American College of Financial Services. “It clearly sets out an individual’s return objectives and risk tolerance over their relevant time horizon. A reputable financial planner can help put it together.”

Richard D. Quinn, President of RDQ LLC, adds, “One danger may lie in being too risky when selecting investments to make up lost ground. Even at 50, an individual has to take a long-term view of at least 10 years in picking investments. Factors to influence the strategy include the percentage of income someone is is able and willing to save and how long they are able and willing to keep working.”

One key is to define what is needed for the lifestyle a person wants. This view is voiced by Ilene Davis, a Certified Financial Planner and author of Wealthy By Choice. “I’ve had clients start at 50 with almost nothing and retire comfortably because of ‘wealthy choices’ they were willing to make,” she says. “Do the math and determine how much will need to be saved and invested each year at a conservative rate of return, and be realistic about inflation and life expectancy. There are so many easy things, even at 50, that can be done to build wealth for years when work may not be a desire or an option.”

“There are several ways that late starters can play catch-up on retirement savings,” notes Tom Foster, MassMutual’s expert on retirement savings at the workplace. “For example, workers who have access to a 401(k) or other defined contribution plan can save up to $18,500 annually. Even over a short time, those savings can quickly add up, especially with positive investment returns. And those who are age 50 or older can save an additional $6,000 annually in a defined contribution plan for a total of $24,500.”

One key strategy is taking advantage of any employer match, Foster adds. “If a Boomer cannot afford to contribute the maximum or close to it, he or she should consider saving enough to secure the available maximum in matching contributions.” Other worthwhile measures include contributing pre-tax dollars to a 401(k) And as Foster notes, the Social Security Administration reports that postponing Social Security at age 65 or later can boost future payments by eight percent for every year the income is deferred until age 70.

Through a collective of branded @SilverDisobedience social media pages and traditional media outreach, the messages of Silver Disobedience are heard and acted upon by a powerful audience. Its Social Media #Influencer Status is helping new understandings about “those of a certain age.”

 

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