Retirement is getting harder and harder, there’s no doubt about that. With wages stagnant and expenses rising, young and old are finding it harder than ever to set aside money for their future selves. But with the right strategy, you can make retirement savings work for you.
1) Start Saving Early
The ideal age to start saving for retirement is right now, however old you are. Thanks to compound interest, the earlier you add to your retirement savings, the more it will pay off in the long run.
Many older adults today are planning on working longer because they don’t have enough saved up already. There’s growing fear that people will outlive their retirement savings, so those who did not begin saving early enough are extending their working lives well past 65. With average life expectancies now in the high 80s for men and women, people are putting off retiring to save more money. The number of people retiring after 70 has doubled in the U.K. thanks to these concerns.
2) Set Aside Money Each Month
Even if you don’t have much to set aside, every bit adds up quickly and pays more and more over time. Younger people often struggle to set aside money for their retirement because they are focused on other savings goals first, such as buying a home or saving for a car. As they balance these goals with higher living expenses like sky-high rents, it’s easy to let retirement fall by the wayside.
Trimming expenses can help you set aside more each month. If your income is growing each year thanks to raises, consider putting off lifestyle changes that will cost you more money. Save the extra money instead and grow your retirement savings early.
3) Make Safe Investments
Once you have a bit of a nest egg set aside, you need to do something with it. Investing in stocks and bonds are the traditional way of growing your savings over time. There are other investments that are safer in a time of economic uncertainty when recession and negative real interest rates mean you’re losing ground. Try other asset classes like precious metals including gold and silver. Gold is an asset that performs exceptionally well in the long-term, beating inflation and providing a counter-risk to the stock market.
If you’re making gold and silver part of your retirement planning, learn how to buy and sell bullion online to cut down on fees and enjoy fast transactions. One of the most important parts of growing your savings with gold and silver is finding a way to maximize your returns. Buying gold and silver with a fixed amount of money set aside each month reduces the effects of price fluctuations. You always want to buy gold and silver at the lowest possible price point – reducing your fees and premiums helps considerably.
4) Pay Down Debt
Debt is another factor keeping many workers from retiring when they would like to. Paying down your debt while you are still working is essential to a comfortable retirement. Set aside credit cards and trim expenses rather than relying on credit to cover your everyday expenses. If you can’t pay your full balance at the end of the month, you’re getting charged interest that’s eating into your ability to save.
Saving for your retirement is one of the most important things you can do for your future self. Pay yourself first and spare yourself from having to put off retirement.