If you are wondering how to start saving for retirement at 45, you are not alone. You wanted to start saving for retirement long ago but sometimes life doesn't go as planned. Now is the time to get aggressive about saving. Keep reading for five steps to help you build a nest egg later in life.
It's Not Too Late to Start Saving for Retirement
You may be wondering how to start saving for your retirement in your 40s. The best time to begin saving for retirement is as soon as you have steady, gainful employment. Unfortunately, life sometimes gets in the way of your best intentions.
Lucky for you, it's not too late. However, you'll want to be focused on growing your savings quickly so you can catch up.
Tips for Retirement Saving
Whether you are 40, 45 or 55, here are tips to save for retirement later in life:
Open an IRA account. Opening an IRA allows you to defer your tax benefits until retirement when you may be in a lower tax bracket than you are now. Be sure to consult your financial or tax advisor before contributing to an IRA.
Take advantage of your employer's 401(k) account. If your employer does not offer a 401(k) account, consider looking for a company that does.
Be strategic with company matching. Most employers offer some level of matching contributions to 401(k) plans. Don't leave any money on the table. If your employer offers a match program, ensure your level of contribution takes full advantage of your company's policy.
Make saving for retirement a priority. You may have had different financial priorities in your 20s and 30s than you do today. Paying off student loans and saving for your children's education are important expenses that can keep you from saving for retirement. Now it's your time. Consider making adjustments to your normal spending habits to take full advantage of your retirement savings products.
Reconsider your retirement plans. You may have imagined retirement as one long vacation but many people find it therapeutic and healthy to stay engaged in the workforce. Taking a low-stress, part-time job can be a great way to stay active and supplement your retirement income.
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of .
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.
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NATIONAL AVERAGE: National Average APYs are based on specific product types of top 50 U.S. banks (ranked by total deposits) provided by Informa Research Services, Inc. as of 3/01/2017. CD Rates: Average APYs are based on certificate of deposit accounts of $25,000. High Yield Savings Rates: Average APYs are based on High Yield Savings Accounts of $10,000. Money Market Account Rates: Average APYs are based on Money Market Accounts of $10,000. Although the information provided by Informa Research Services, Inc. has been obtained from the various institutions, accuracy cannot be guaranteed. Please click on "Learn More" above for additional disclosures for each product.