Not saving enough for retirement? Help for empty nesters

You can make changes to your finances to pave the way to a comfortable retirement.

As an empty nester, you may find that you have more time and more money since your kids are now living independently. Unfortunately, to get to this point you may have had to shift your financial attention from your own future to that of your kids. This can be especially dangerous as retirement is quickly approaching. Here are some quick tips to follow if you are worried that you haven’t saved enough money for future.

Increase your contributions
With your kids gaining their financial independence, you may find that you are able to hold on to more of your income. At this stage in your life, retirement has probably shifted from being a long term goal to a short term goal, which is why it is important to beef up your savings plan now. Look for ways to spend less money and consider increasing the amount you contribute to your retirement account each month so that you can save as much as possible for your future.

Go beyond your employer’s plan
If you have been contributing money to a 401(k) plan, you are on the right track. With 401(k) plans, you may be able to take advantage of programs in which your employer matches a percentage of your contributions. But did you know that your retirement resources go beyond your employers offerings? Research IRAs and annuities so that you can save more. And if you don’t understand all of the terms or saving strategies you come across, you might want to enlist the help of a financial planner to help you navigate the road to saving more for your retirement.

Use your expertise
If you haven’t saved enough money for retirement, but you are determined to stop going into an office five days a week for eight hours a day, you may want to consider consulting, working part time or doing some freelance work. Doing some work as a retiree can help make up for the money that you didn’t save while you were working full time.

Also keep in mind that now is probably a good time to switch your investment strategy. When you are younger it is okay to use more aggressive investment strategies because you have plenty of time to recover if your finances take a hit. As an empty nester, however, retirement is probably just around the corner, which means it could be a smart move to switch to safer strategies so you don’t lose out when you need the money the most.