According to The Wall Street Journal’s article titled “How to Catch Up With Retirement Savings”, written by Tom Lauricella, [i]t may not be easy for late starters to catch up on retirement savings, but it’s not a lost cause.” Everyone must not lose sight of the end goal and the reality of such goal: to have as much money as possible upon retirement. The higher the risk, the potential for higher return, but such strategy may not be worth it considering that one is trying to catch up. “Instead, the most effective way to build a retirement cushion after a late start is a combination of being aggressive about saving money, putting off retirement and taking Social Security as late as possible.” Being disciplined about budgeting and saving is extremely important; every penny counts. Additionally, by putting off Social Security, one has “more time to save, more time for those savings to grow, and fewer years of retirement to cover with savings.”
To read the article in its entirety, which provides numerical examples, please click here.