It's no secret that most Americans do not have enough money saved for retirement. In fact, the median retirement savings for people 65 and older is estimated to be $172,000, well short of the amount that financial planners recommend. Keep reading to learn how to achieve your retirement goals through implementing solid savings strategies.
Now that you know the median retirement savings at 65, do you know how much savings you need to retire comfortably?
Financial experts suggest that you should have 12 times your annual salary put aside for retirement. For someone who makes a median income of about $62,000, that amounts to $744,000 — well beyond what most people at 65 have in their retirement savings.
If you are close to retirement age with less than six times your annual income saved for retirement, the time to save is now.
Consider these money-saving options:
1. Downsize your home. If your mortgage is paid off, you could realize a profit from the sale of your house. Any proceeds from the sale can help to cushion your retirement savings, and you may also save by minimizing household expenses like bills, maintenance, etc.
2. Refinance your mortgage. If you are still paying off your mortgage, consider refinancing at a lower interest rate to reduce your monthly payments.
3. Hold off on retirement. Consider working a few years longer than you initially planned. Even a part-time job can increase your cash flow.
Here are a few other benefits to working longer:
4. Liquefy some assets. Remember that coin collection you began when you were a kid? It could be worth quite a bit of money now. Consider if any of your assets could be sold to help fund your retirement plans.
When considering your options, remember that even small steps towards reducing your monthly expenses will help your retirement income go further.
Whether you are just beginning to save for retirement or feel like you need to catch up, opening an account with Synchrony Bank can help. We have several savings tools that can help you meet your retirement goals at any age.
Call 1-844-345-5789 or find Synchrony Bank online to learn more about award-winning deposit products to help you save for retirement.
Fool: U.S. Media Income
Investopedia: The Average Retirement Savings by Age for 2016
Kiplinger: 6 Reasons to Work Past Retirement
AARP: Retirement Savings
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of .
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