Being late isn’t always bad! If you’re late to work the day the lunchroom catches on fire, you just might save your life. 😲 We tried to ban Ethel from using the microwave, but she never listens. Ethel, popcorn takes two minutes, not two hours. 🍿🥴
You know what Ethel’s good at? Saving for retirement. 👛 She’s been saving her pennies since she got her first job back in 1898. Not so financially fortunate? Have a look at these tips. 👇
Here’s Five Fast Facts on how to catch up on retirement savings:
- 💰 Making the Cut - If your retirement fund looks more like a snack budget, you’re not alone. The median 401(k) balance for ages 45-54 is just $60,763, and for 55-64, it’s $87,571. Unless you plan to live off canned beans and nostalgia, that won’t stretch far.
- 🏃 0 to 100 Real Quick - If you’re 50+, Uncle Sam lets you throw in extra cash. In 2025, 401(k) limits are $23,500, plus a $7,500 bonus if you're 50+. Hit 60-63, and you can toss in up to $11,250 extra. IRAs? You get a modest $1,000 bump. Not thrilling, but every dollar counts.
- 🧠 Smart Investing - Saving is half the battle; growing it is the other. The key? A mix of assets that balance risk and reward. If your money sits too safely in bonds or cash, inflation eats away at your future buying power. But go all-in on stocks, and a market downturn could hit hard when you’re close to retirement. Experts often suggest a blend—think 60% stocks, 40% bonds—adjusted as you age. A financial advisor can help fine-tune your mix so your money keeps working without keeping you up at night.
- ✂️ Trim the Fat - We roll our eyes at “skip Starbucks” advice too. But let’s talk real savings. Housing and transportation eat up the biggest chunks of most budgets—around 50% for many Americans. Downsizing your home, refinancing to lower interest rates, or switching to a cheaper car can free up thousands per year. Even small cuts—cooking at home more, canceling unused subscriptions—add up over time. The trick? Redirect those savings straight into your retirement account before lifestyle inflation swallows them up.
- 📈 Set It & Forget It - The best way to save is to take the decision out of your hands. Automate contributions to your 401(k) or IRA so money moves before you even see it. Experts recommend aiming for 15% of your income—but if that’s too steep, start with whatever you can and increase it when you get raises. Many 401(k) plans even let you set up auto-escalation, so your savings rate bumps up a little each year. If you rely on manually moving money, guess what? You’ll find a way to “accidentally” spend it on something else.
🔥Bottom line: As long as you’re breathing, it’s not too late to save. Whether you’re 35 or 65, starting now is always better than waiting. All you have to do is start! You may have seen a headline or 10 about the new AI tool called DeepSeek. What is it and how does it impact your retirement account? We’ve got all the details in this article!
Are your retirement savings goals on track?
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