Saving Money for Retirement at an Older Ageby Dwight Wanken
When planning for retirement later in life, making up for lost time through increased savings can be done. And, it might be less painful than you would imagine. Consider Kathy who is fifty years old and plans to retire at 60. Kathy wants to increase her savings level but knows that her ability to change her income is limited. On the other hand, her ability to change her expenses is totally at her discretion. So, instead of making her morning coffee at home or buying it on her way to work, Kathy is saving money by simply waiting until she arrives at work and drinking coffee provided by her employer. By doing this Kathy is able to save approximately $7 a week and she contributes that savings to her IRA. Over the next ten years, Kathy can painlessly save a total of $3,640 which, assuming it grows at an average of 5.5% a year, would grow to $4,860 by the time Kathy is ready to retire.