Read This If You May Not Save To Retirement – It’s relatively easy to save for retirement when you are young. The five thousand dollars set aside for a new baby grows to an amount that generates more than $ 100,000 a year in current dollars if money makes 12 percent per year and inflation runs at 3 percent.

NOTICE The data is a bit cryptic, but small company shares may provide an average return of around 12 to 13 percent over a long period of time. However, small company shares are very risky in a shorter period of time.

The flip side of this is that it becomes difficult to save for retirement if you start thinking (and saving) at the end of your work year. If you are 60 years old, have not started saving yet, and want income of $ 25,000 per year from your retirement savings at age 65, you may need to contribute more each year than you make.

Say that you are 50 years old or even a little older. With children’s tuition fees, or maybe divorce, you don’t have money saved for retirement. What you have to do What you can do This situation, even if it’s not profitable, doesn’t need to be untenable. There are several things you can do.

Just say no

One tactic is not to retire or at least not yet. However, you save for retirement so that income from savings can replace your salary and wages. If you don’t stop working, you don’t need retirement savings to generate investment income.
Also note that not retiring does not mean you have to keep the same job. If you have sold a computer for life and you are fed up, do something else. Get a teaching job at a community college. (Maybe you will get summer.) Join the Peace Corps and go to South America. Get a job at a child care center and help shape the future.

Give yourself breathing room

The second tactic is to retire a few extra years, which of course also reduces the number of years you retire. Instead of working until the age of 62 or 65 years, for example, working until the age of 67 or 69 years, several years of contribution and compound interest in a comewill will make a surprising difference, and you will substantially increase the money you receive from a defined benefit pension plan. If you pay the mortgage, maybe you can pay it off in a few extra years too.

Redefine your prosperity

A third and more unconventional tactic is to decide that less and less is in harmony with the art and philosophy of frugality. A good book about this is Your Money or Your Life by Joe Dominquez and Vicki Robin (Viking Penguin, 1992). And if you decide to live less while you are still working, you will end up saving more than your remaining years working.