Building Retirement Savings After 50

Financial advisors recommend saving money for retirement during every phase of life, but it's not uncommon for couples and individuals to reach their 50s without enough money saved for their eventual retirement. 

The average citizen spends the majority of his or her income on food, shelter, and transportation, as well as small amounts on healthcare, education, recreation, and general household purchases. 

Regularly saving money for retirement isn't always part of the monthly budget. Families, couples, and individuals can begin saving money for retirement in any decade of life but doing so after the age of fifty does require a different strategy than doing so as a twenty-something or thirty-something worker.

Maximize Contributions to a Registered Retirement Savings Plan

Contributions to a Registered Retirement Savings Plan (RRSP) reduces taxable income each year, and investment income made from the bonds, shares, Guaranteed Investment Certificates, and other investment types within the RRSP isn't taxed either. 

Speaking with an investment professional can help individuals and couples who haven't yet begun saving for retirement choose the best investment path. However, it's not necessary to create an official investment account to begin saving. Putting some money aside in a run-of-the-mill savings account is an excellent first step for anyone who hasn't started saving. 




Other investment options include Voluntary Retirement Savings Plans (VRSP) and Tax-Free Savings Accounts (TFSA), but it's important to note that contributions should only reach a point where borrowing from the accounts doesn't become necessary unless an emergency occurs. 

While it's possible to borrow money from retirement accounts, those loans are taxed as income at the end of the year.

Modify the Monthly Budget to Accommodate Retirement Savings

Living life to the fullest at every age can help couples maintain their health throughout the decades before retirement, but it's important to consider building some savings over time. 

Those living on tight budgets may need to rearrange certain facets of their monthly budget to establish a savings account. Future retirees do have some radical options for building retirement savings if they own their own home or other valuable items. 

Moving from a large house to a small residence where there is no mortgage payment can allow the family to send the money that would otherwise pay the mortgage into a retirement account. 

Less drastic options also exist where couples can rearrange facets of the monthly budget to ensure some money exists each month for savings accounts, retirement accounts, and other investments. 

Researching better prices on necessary goods and services can also help. For example, it's beneficial to shop around to compare life insurance quotes, car insurance, as well as examine monthly bills for cell phones, gym memberships, and cable television services. 

Modifying habits like eating out at restaurants and buying unnecessary clothing or furnishings can also help increase the amount of money available for placement in retirement accounts.

Retirement Planning is Possible at Any Age

The cost of living will only increase as time passes, and actively saving money for retirement is a beneficial and necessary step in every person's life. Future retirees have many options for building retirement savings and may wish to explore all available options to determine the best path toward a comfortable retirement.

Expert Expenditures: 4 Tips to Make Your Monthly Spending More Effective

Establishing yourself financially is a process that can take a fair amount of time and effort. Many young people struggle, especially during their first few years on their own, to manage their finances well and achieve stability. 

If you are currently in this situation, however, there are some excellent steps you can take to position yourself for better security down the road. In particular, you should be focusing on your monthly expenses, as limiting what you spend will give you more money to save or invest. 

Here are four ways to make your monthly spending more effective and free up more of your income.

Get Your Debts Paid Off

One thing many younger people struggle with is personal debt, often from credit cards. If you find that you're making monthly debt payments, your first focus should be to pay this debt off as quickly as possible and avoid taking on more in the future unless it is necessary. 

There are exceptions, such as student loan debts and home loans, but credit card and personal loans will do nothing to help your financial position. Be sure to pay down whatever debt carries the highest total balance first, as this will allow you to reduce your monthly expenses more quickly.

Buy Food in Bulk

Though it may seem like an insignificant expense on a day-to-day basis, most people spend a great deal more than they realize on food. An easy solution to this is to buy foodstuffs, especially meat, in bulk at the beginning of a given week. 

This will not only let you track your spending more easily, but also help you get better deals on the food you buy. A freezer is also useful, as it will let you save excess food for later consumption.

Stop Renting and Buy a Home

One of the best financial decisions you can ever make is to stop paying rent and purchase a home. On a month-to-month basis, your payments will often be lower than they would be for rent. 

In addition, you will be building equity in your own asset instead of paying for your landlord's equity. The only people for whom owning a home isn't advisable are those who plan on moving out of the area in which they live sometime in the near future. 

For these people, the advantages of home ownership are few.

For everyone else, however, owning a more makes vastly more sense than renting a house or apartment. 

Look for construction in the area you want to end up in eventually, like new homes in Utah County or build a house in Houston, to ensure that you end up where you want to be.

Try to Consolidate Bills

These days, most people have many more bills than an average person did in the past. Some, though certainly not all, of these bills can be consolidated. For example, many phone service providers also offer internet and television. 

The cost of bundling your services together with one company, rather than having multiple accounts, can be significantly lower. Keep in mind that even small savings on monthly recurring payments can add up over time.

If you save just $10 per month by bundling bills together, you'll save a total of $600 over the next five years. Such small changes can make a big difference when it comes to your finances, so be sure to take advantage of them when possible. 

Becoming financially stable will take effort on your part, but the rewards of it later in life are significant. The more money you can save and invest now, the greater your opportunities will be in your 40s, 50s and beyond. 

Be sure to explore all avenues that can save you money on your monthly bills, and you'll be on the path to basic financial security before you know it.