You're 55 years old and have $0 in retirement savings, but you want to retire in 10 years — is it a pipe dream? Here are 4 simple steps to turn your concern into confidence

Moneywise
You're 55 years old and have $0 in retirement savings, but you want to retire in 10 years — is it a pipe dream? Here are 4 simple steps to turn your concern into confidence
You're 55 years old and have $0 in retirement savings, but you want to retire in 10 years — is it a pipe dream? Here are 4 simple steps to turn your concern into confidence

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First, know that you’re not alone. Second, know that it’s possible to fix this situation — but it will take discipline and sacrifice.

In 2021, the average retirement age in the U.S. was 64.7 for men and 62.1 for women, according to research by the Center for Retirement Research at Boston College.

But, according to the Fed’s latest Survey of Consumer Finances, 37.8% of people aged 45 to 54 and 43% of people aged 55 to 64 have no money set aside in dedicated retirement accounts.

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So if you haven’t started saving yet, you’re not alone. But it’s never too late to get started.

1. You need a plan

Americans are 15 times more likely to save for retirement when they have access to a workplace plan, according to a recent survey from AARP. Their data also shows nearly 57 million people do not have access to a retirement plan at work.

Retirement planning is more than a dream — it’s a strategic journey. And it all starts with a plan and knowing how much you need to retire.

If the magic number you arrive at seems impossibly high, then you may need to readjust expectations for your retirement lifestyle. This might mean traveling less in your golden years, or it could require more drastic changes, such as downsizing your home or even moving to a less expensive city or state once you retire. You might also want to consider working part-time during retirement, at least for a few years.

Trying to figure this out alone and come up with a clear plan might be stressful. Finding a trusted financial advisor who knows your retirement goals inside and out can give you peace of mind.

There are several free online services that are designed to match you with experienced professionals based on your unique needs.

For example, Advisor.com is a financial advisory firm that connects you with vetted financial advisors to make the process of finding the right advice easier.

Unlike many traditional advisors, the professionals in their network are ready to assist clients, irrespective of their financial situation.

After sharing some information about yourself and your finances, Advisor.com matches you with experienced financial professionals best suited to help you figure out your financial goals and develop a plan to achieve them.

You can view the advisors’ profiles, read past client reviews, and schedule an initial consultation for free, with no obligation to hire.

Read more: Car insurance rates have spiked in the US to a stunning $2,150/year — but you can be smarter than that. Here's how you can save yourself as much as $820 annually in minutes (it's 100% free)

2. You need to save more

Once you have a savings plan, the hard work begins. You’ll need to save a lot in a relatively short period of time, which means you’ll need to cut your expenses.

You may need to live on as little as 25% of your income, which will require you to be fully committed to your plan. To help get you there, you may want to consider making lifestyle changes, like relocating, taking public transportation instead of driving and forgoing expensive entertainment.

To help you reach your retirement goal by age 65, It’s not enough to cut your expenses, it’s important to also maximize and preserve your savings.

If you’re looking for a safe spot to stash your money, a certificate of deposit (CD) can be a solid pick. It’s a type of savings account with a fixed interest rate and a maturity date. But then, how can you find the best rates?

With CD Valet – the nation’s first online CD marketplace – users can shop and compare top certificates of deposit rates from various banks and credit unions nationwide.

Tracking over 19,000 rates from more than 2,500 financial institutions, CD Valet offers you the most competitive rates and daily updates without bias.

It’s not enough to just save a lot. You have to be smart about it.

If you want to boost your retirement savings even more, check out the Moneywise list of the Best High-Yield Savings Account of 2024 so you can choose the best option to grow your money effortlessly.

3. Make sure your savings are working hard for you

We all know that when it comes to earning interest on your cash, more is better. However, only 22% of savers earn 3% or more on their accounts, despite 75% of online accounts offering higher rates.

A majority of middle-class Americans are leaving money on the table. If you are 50 and plan to retire in 10 years, you’ll need to get the most you can out of your retirement and savings accounts.

They say there’s no secret to long-term wealth, but if there were it would be automated investing.

With the help of Wealthfront, you can set up an automated investing account, and watch your wealth grow over time.

When you sign up and fill out a quick questionnaire, Wealthfront will build a portfolio for you based on your finances, risk tolerance and investing goals. .

4. You need a budget

Over 4.1 million Americans will reach the retirement age in 2024 alone, which is more than 11,200 every day, according to the Alliance for Lifetime Income. Very few people will find themselves financially prepared to retire.

Saving for retirement is one of the hardest things for Americans to do in the current economy. If you want to retire in 10 years but haven’t set aside much, you'll need a retirement budget fast. When you’ve determined the income you’ll need to retire, you’ll need to calculate how much of this will need to come from savings. From there, you can determine how much you’ll need to save in total.

However, most people find it difficult to manage discretionary expenses. These represent "wants" rather than "needs." They include entertainment, dining out, travel, hobbies, gifts, luxury items, subscriptions and memberships. But tracking your expenses can be very difficult and MonarchMoney is a great tool that can help you out.

Monarch Money is a budgeting platform that makes checking in on your money simple and streamlined. You can set and track your money goals, monitor transactions, enjoy access to personalized advice, and track your net worth.

That’s probably why the Wall Street Journal rated Monarch Money as the best overall budget app for 2024.

To get started, all you need to do is download the app, or open an account and start enjoying your free trial.

Retiring in 10 years with no savings will be challenging. But with the right mindset and discipline, it’s possible.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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