If you’re feeling behind on your retirement savings, you’re not alone. Life has a funny way of getting in the way of even the best-laid plans—whether it’s due to career changes, family responsibilities, or simply not knowing where to start. But here’s the good news: it’s never too late to get started, and with the right strategies, you can still secure a comfortable retirement.
Let’s dive into a few practical steps to help you get back on track.
1. Don’t Panic—Start Where You Are
It’s easy to feel overwhelmed when you realize you’ve fallen behind on your retirement savings, but the first step is to take a deep breath. Whether you’re in your 40s, 50s, or even beyond, the key is to focus on what you can do now rather than dwelling on lost time.
Start by assessing your current financial situation. Review your university-sponsored retirement plans—whether that’s through Fidelity or TIAA—and see where you stand. Provizr can provide a free, in-depth portfolio analysis to help you understand the performance of your current investments, fees, and risk exposure.
2. Max Out Your Contributions
One of the easiest ways to catch up on retirement savings is to contribute as much as you can to your employer-sponsored retirement accounts, such as your 403(b) or 457 plan. If you’re over 50, take advantage of the IRS’s catch-up contributions that allow you to put in extra funds each year. These are designed specifically for people like you who may have gotten a late start.
3. Cut Unnecessary Expenses
To save more for retirement, you may need to take a hard look at your current expenses. Cutting back on discretionary spending—like dining out, expensive vacations, or subscriptions—can free up more funds to put towards your retirement accounts. Every little bit helps, and those extra contributions will grow over time.
4. Reevaluate Your Investment Strategy
When starting late, it’s crucial to ensure that your investments are working as hard as possible for you. This may mean adjusting your asset allocation to take on a bit more risk, especially if you have a longer time horizon. Diversifying your portfolio can also help smooth out market volatility and position you for long-term growth.
At Provizr, we focus on tactical management—an approach that balances risk and reward by rotating between asset classes based on market conditions. This method allows you to take advantage of uptrends while minimizing exposure during downturns.
5. Consider Delaying Retirement
If possible, working for a few more years can significantly impact your retirement savings. Not only will this give you more time to contribute to your retirement accounts, but it can also allow your investments to grow. Plus, delaying Social Security benefits can result in a higher monthly payment once you do start drawing on them.
6. Leverage Other Income Sources
If you’re worried that your salary alone won’t allow you to save enough, consider other sources of income. Whether it’s starting a side business or picking up freelance work, generating additional income streams can help you make up for lost time.
7. Get Professional Help
Trying to catch up on retirement savings can be complicated, but you don’t have to go it alone. At Provizr, we specialize in helping university employees navigate their retirement plans, whether you’re with Fidelity or TIAA. Our free Provizr Blueprint offers personalized advice on everything from portfolio performance to risk management.
We understand that financial decisions can be overwhelming, especially when you’re playing catch-up, but we’re here to simplify the process. By working with a dedicated advisor, you can create a retirement roadmap that gives you peace of mind and puts you back in control of your financial future.
Final Thoughts
Starting late doesn’t mean you’re out of the game. With discipline, smart investing, and the right guidance, you can still build a solid retirement foundation. Remember, it's not about where you started—it's about where you’re going.
Feeling inspired to get started? Contact Provizr today to schedule your free consultation and make sure you’re on track for the retirement you deserve.
By focusing on strategic moves like maximizing contributions, adjusting investments, and seeking professional help, even late starters can turn their retirement dreams into a reality. It’s never too late to take control of your financial future!