Each month Bankrate1 surveys Americans about how secure they feel about their personal finances compared to the previous year. This year, from August 7th through the 10th, the survey included 1,003 adults living in the United States. The participants were contacted by Princeton Survey Research Associates International to give their opinions on their financial state.
When asked about the age they started saving for retirement, 36% of those polled have not yet even started saving yet, representing the largest group. One percent said they did not ever plan to stop working. However, an interesting finding was that college graduates were more than twice as likely to start planning for retirement in their twenties as those who didn’t graduate. But it is not all doom and gloom for retirement savings. The second largest group of those polled; 23% said they started saving for retirement during their twenties.
Bankrate2 also gives a few tips for those looking to increase their retirement savings.
Sign up for a 401k or similar retirement account. This is especially true for younger people, but having a retirement account is beneficial for workers all of ages. Check to see if your employer matches contributions to the account.
Invest with purpose. Younger people should invest aggressively. They can ride out the ups and downs of the market. Older investors should be a bit more conservative. Work with a financial adviser you trust to make investment decisions that you are comfortable with and will be best for your retirement goals.
Educate yourself. There are many options for retirement savings. If you are stashing your extra cash in a savings account, there are probably better options for your retirement savings. Many banks and credit unions as well as financial planners offer classes in retirement saving. Even some libraries, colleges and community groups offer free or low-cost retirement planning classes.
Avoid debt. Whether it is a broken hot water heater, new tires for the car or medical costs, debt can be overwhelming. Having stable savings for emergencies only can help you stay out of debt. No matter what stage you are at in life, you can reevaluate your priorities and make changes to increase your savings. Perhaps downsizing to a smaller home or to fewer cars will add to your savings account. Even small things like cooking at home rather than eating out or adjusting insurance policies can help you save.
When considering their net worth including, total assets and real estate, just over half of those polled said their net worth was about the same as it was a year ago. 25% believed their net worth was higher versus the 19% said lower.
Of those surveyed, half said they have about the same amount of money in savings today that they did a year ago. 32% said they were less comfortable today and 16% said they were more comfortable. Those who are currently in the workforce were more than twice as likely to say they were more comfortable with their savings than those who were retired.
If you are like those who were surveyed and are approaching your retirement years without enough savings, there may be another financial option to help you meet your retirement needs. Reverse mortgage loans utilize the equity the homeowner has built up in their home to make payments to the homeowner. You can choose if you would like a lump sum or monthly payments. Alternatively, you can use the reverse mortgage loan as a line of credit. Borrowers must be at least 62 years old, have significant equity in their home, and must continue to pay taxes and insurance and continue to maintain the property.
One of the many perks of a reverse mortgage loan is the flexibility. The money can be used however the borrower chooses. Whether that’s for home repairs, medical bills, or just to save for a rainy day. If your retirement savings did not turn out the way you wanted, a reverse mortgage loan could help you to live the retirement you have always wanted. For more information about reverse mortgage loans or to see if you qualify, call 800-976-6211 for more information.