How Old Is Too Old to Save Money for Retirement?

How Old Is Too Old to Save Money for Retirement?

( – A recent study by OnePoll found that nearly half of the people surveyed thought there was an age when people were too old to start saving for retirement. While it’s true the longer you wait to save, the less you’ll be able to rely partially on compound interest to leap your wealth forward, it’s never too late to start saving for retirement. In fact, the best time to start for anyone of all ages is now.

The first thing you want to do is clean out your budget and eliminate any unnecessary expenses. Funnel that found money into an IRA or Roth IRA, and do your best to max out the contributions each year. If you have an employer that offers a 401(k) match program, invest in it automatically up to the employer’s match amount — or more if you can. By doing that, you’re essentially doubling your investment.

If you’re starting when you’re older, you might want to consider a less risky plan. Many companies like T. Rowe Price and Vanguard offer retirement funds based on the year the investor plans to retire. That choice might be better to relieve some investment stress by leaving the management to the experts.

Choose a goal amount you want to save by retirement and calculate how much you’ll need to invest per month to reach that figure. If it’s an unattainable amount for you, get as close to the number as possible without experiencing too much of a negative impact on your current life. As you get older, the monthly amount will be more to reach the same goal because the investments don’t have as much time to multiply.

Remember, it’s never too late to start investing for retirement. All you have to do is begin.

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