The Employee Benefit Research Institute’s 2013 Retirement Confidence Survey broke down the percentages of American confidence in being able to afford a comfortable retirement. While more than half of Americans express some level of confidence in their ability to afford a comfortable retirement, (13% are very confident and 38% are somewhat confident), 21% are not too confident, and 28% are not at all confident. In addition, the percentage of those “not at all confident” is at the highest level it has ever been in the 23 years this survey has been administered.
Despite a brighter economic outlook this year than last, experts believe that one of the main reasons retirement confidence remains low is that people are beginning to realize just how much they need to save for their retirement. While it’s best to start saving for retirement as early as possible, what about those who reach their 40s before they start saving? Here are a few simple things you can do to make saving for retirement a little easier:
Cut back your spending: An easy way to worry less about retirement is to decrease your spending. Try cutting back on small purchases first and see how much you miss them, (or maybe don’t miss them at all). You may need to ask yourself – “Would I rather spend $60 on coffee a month or use that money for retirement?”
Stay healthy: Health care is a big expense during retirement. Even though a large part of your health is genetic, there are still many good habits you can practice in order to maintain a good weight and good overall health. Eating right, exercising often, drinking plenty of water, and getting enough sleep at night are just a few things you can do to stay healthy.
Make a plan to pay off your mortgage: A mortgage is one of the biggest monthly household expenses. If you pay off your mortgage before retirement, it will then be much easier to make ends meet. You can even use one of the various online mortgage calculators to time your mortgage payoff to your retirement date.
Let’s face it, retiring comfortably can be expensive. If you’re looking to take control of your retirement and start building a healthy retirement nest egg, call our experienced self-directed IRA administrative staff at 407-367-3472 to discuss your investment options within a self-directed IRA.
