If you’re behind on saving for retirement, don’t worry – there are steps you can take to get further ahead. The appropriate measures will depend on factors such as your proximity to retirement, your risk tolerance, and your financial situation. To make the most informed decisions, it’s wise to learn your retirement score and see how you boost it with guidance from an IFW Certified Financial Professional.
Identify the Root Cause
First things first, it’s crucial to identify what’s causing the shortfall in your retirement savings. Whether it’s a lack of income, overspending, or unexpected financial hardships, understanding the impact on your savings is key. By pinpointing the issue, you can take steps to resolve it and safeguard your future finances.
Trim Your Expenses
If overspending is part of the problem, it’s time to get serious about your budget. Assess your spending habits and income carefully. When it comes to expenses, there are likely areas where you can cut back without feeling the pinch. Consider canceling unused subscriptions or downsizing your living arrangements. Small changes can make a big difference, and you can even consider more significant adjustments like altering your vacation plans.
Increase Your Income
If you’re still working, now is a great time to explore ways to boost your income. Negotiate a raise, take on a part-time job, start a side business, or offer consulting services in your field. When you earn extra income, allocate it all towards your retirement savings to accelerate your progress.
Reevaluate Your Retirement Goals
If you’ve fallen behind on your savings targets, it’s a good opportunity to reassess Consider whether your initial retirement timeline still aligns with your current situation. Maybe you want to work a few more years or adjust your retirement lifestyle. Additionally, given any changes in your financial circumstances, reevaluating your risk tolerance and investment strategy may be wise. A financial advisor can provide valuable guidance in aligning your goals with your present circumstances.
Take charge of your retirement savings now. Here at The IFW, providing you with the knowledge you need gives you the power to take control of your financial destiny and live the retirement you’ve always envisioned. We provide your current retirement score and the likeliness of achieving your goals in retirement with your current strategy, and we help you understand your Retirement Score and share strategies on how you can increase it. The higher the score, the better.
Erik C. Sussman, CLU®, ChFC®, CFP®, and CEO of The Institute of Financial Wellness founded the company to provide financial education, resources, and services that help people live their best lives.
For Financial Professionals:
The Institute of Financial Wellness provides proven sales and marketing systems, state-of-the-art technology, training, and support to financial professionals nationwide. The IFW helps financial professionals grow their practices to the next level! IFW Certified Financial Professionals are an elite group of professionals that, together with the IFW, help people succeed financially and live their best lives.
The Institute of Financial Wellness is the most comprehensive multi-media network for financial education, resources, and services. In fulfilling our mission to help people “Get There” and live their best life, we deliver the following five unique value propositions:
Our philosophy is that when it comes to financial decisions, Never say Never. Never say Always. It Depends!