You’ve Still Got Time to Fix Your Retirement

The good news is that it’s never too late to start saving (or boost how much you save.) No matter when you increase your savings, it will make a difference down the line.

Everyone knows you’re supposed to start saving early for a comfortable retirement. For some time now, the advice has been to start saving in your 20s. But what if you’re already in your 30s, 40s, 50s or even 60s?

Fidelity suggests four steps that can help you along the way:

1. Set a budget. Before retiring, figure out your monthly expenses. Then adjust to your eventual retirement budget by living on that amount before you retire.
2. Consider working part-time. Look for positions where you can use your skills and find some satisfaction — whether that’s mentoring or consulting, or pursuing a passion project.
3. Plan out your health benefits. If you’re under 65, you’ll need to figure out your access to health care since you won’t be eligible for Medicare.
4. Figure out how to avoid tapping savings or claiming Social Security. If part-time income won’t support your current lifestyle, scrutinize your expenses and look for ways to trim the fat. Some spending may be more flexible when you’re no longer working full-time.

If you’re in your 20s and want good news on your distant retirement, read Money reporter Brenden Rearick’s story here.

— Jill Cornfield, deputy editor

For the third straight quarter, retirement savers of every age have seen their 401(k) accounts grow. The overall average balance in the second quarter, at $112,400, was 39% higher than it was 10 years ago, according to Fidelity’s second-quarter Retirement Analysis.

• Behind on savings? Make sure you check out these guidelines to boost your Social Security payments.
• Don’t put off planning for one of the biggest — if not THE biggest — expenses in retirement: health care.
• If you’re anxious about your retirement readiness, it’s not too late to adjust your plan with these course corrections.

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