Investment and retirement planning professional Michael Littledike has worked with clients as a financial advisor for well over a decade. As the president of Capita Financial Network and MBL Financial LLC, Michael Littledike focuses on the needs and concerns of the Baby Boomer generation, many of whom will enter retirement within the next decade without enough savings.
According to a recent survey conducted by the Insured Retirement Institute, nearly half of Baby Boomers have no retirement savings. The youngest cohort of baby boomers will reach retirement age within 6 to 11 years. In addition to consulting with a qualified advisor, people in this situation with little to no retirement cushion can employ the following strategies to supplement their future Social Security income.
Eliminate debt - Going into retirement with high debt can lead to a financially precarious situation, since many retirees experience a dip in income. Experts recommend paying off high-interest consumer debts such as credit cards and auto loans first, then focusing on a mortgage.
Max out retirement accounts - Workers over 50 can take advantage of the higher contribution allowances offered by many retirement savings accounts. For example, people over 50 can put away an extra $6,500 per year in a 401k and an extra $1,000 per year in an IRA.
Continue working - For many people, paying off debt and boosting savings rates may simply not be enough to retire comfortably in the foreseeable future. If possible, people should consider working a part-time or freelance job even after retiring from their full-time position.
According to a recent survey conducted by the Insured Retirement Institute, nearly half of Baby Boomers have no retirement savings. The youngest cohort of baby boomers will reach retirement age within 6 to 11 years. In addition to consulting with a qualified advisor, people in this situation with little to no retirement cushion can employ the following strategies to supplement their future Social Security income.
Eliminate debt - Going into retirement with high debt can lead to a financially precarious situation, since many retirees experience a dip in income. Experts recommend paying off high-interest consumer debts such as credit cards and auto loans first, then focusing on a mortgage.
Max out retirement accounts - Workers over 50 can take advantage of the higher contribution allowances offered by many retirement savings accounts. For example, people over 50 can put away an extra $6,500 per year in a 401k and an extra $1,000 per year in an IRA.
Continue working - For many people, paying off debt and boosting savings rates may simply not be enough to retire comfortably in the foreseeable future. If possible, people should consider working a part-time or freelance job even after retiring from their full-time position.