Retirement sounds great, but is it really in the cards for most Americans? Today, more than in recent years, many people are finding that while they’d like to retire, they’re not able to. Many of us want to know how to retire when we have not saved enough money. We feel that retirement is simply out of reach.
According to a recent survey and study by HSBC Group, 65% of pre-retirees aged 45 and older say they would like to retire in the next five years. Yet, 38% of those same pre-retirees said they are unable to do so.
Their reasoning varies. Among those who say they’re unable to retire but would like to:
- 64% say this is because they have not saved enough.
- 32% say they have dependents who rely on their income. Sometimes the dependents are aging parents as well as dependent children or adult children who need financial help.
- Debt is also responsible in some cases, with 24% reporting they can’t retire because of their debt burdens.
Do you fit into one of these categories? Are you wondering if there solutions to these problems? With compromise and diligent planning, you can definitely figure out how to retire. Reducing your expenditures is a sure fire way to make retirement possible. You can relocate to a less expensive residence in a less expensive community. You can tap home equity. You can create a plan for retiring your debt before you retire. You can work out better solutions with your dependents.
Not sure where to get started? The NewRetirement retirement calculator lets you get an initial picture of where you stand right now and then the system enables you to change different data points and immediately see the impact it has on your retirement plan — now and well into the future.
For some, the financial pressures have led them to believe they will never be able to retire. According to the survey findings, 18% of pre-retirees across the globe do not believe they will ever be able to fully retire. This proportion is nearly double what it was in 2015 when just 10% said they didn’t believe they would.
The sentiment is in line with actual behavior, too, as many retirees today are working longer and expect to have second and third careers in some cases to maintain income in their later years.
Are you asking yourself how to retire? Can I retire? Do I have enough to retire? One way to find out is to use a reliable retirement calculator. The NewRetirement retirement calculator was recently named a best retirement calculator by the American Association of Individual Investors (AAII). The system can help you figure out out how to retire — even if you have not really saved enough.
The HSBC report also sought answers on why people are looking to retire. Among those surveyed:
- 55% of the group who said they wish to retire in the next five years said they want to retire in order to pursue travel or other personal interests.
- Spending time with family was another major draw, with 44% reporting that as their motivation for wanting to retire.
- Nearly a third reported they are tired of the everyday routine and 23% said their health is suffering due to work.
Depending on your reasons for wanting to retire, you might be able to find creative solutions. For example:
- Can you take longer vacations or reduce your hours but keep working?
- Can you transition to a different type of job that might be more enjoyable?
- Can you find work that would be better for your physical or mental health?
If you’d like to retire but find yourself not able to due to one of the factors identified in the survey, or for some other reason, there are some steps you can take to help shore up your retirement picture.
- Try a retirement calculator. If you use a sophisticated and personalized retirement calculator, you can get a decent idea of your options for how to retire. The NewRetirement retirement calculator is highly detailed, but easy to use. The system defines terms and guides you step by step to your own good decision making. It never tells you what to do, but helps you discover ways to make retirement viable. Best of all, this retirement calculator goes beyond savings and investments. When to start Social Security, cutting expenses, variable income and tapping home equity are all really good retirement solutions not covered by most retirement calculators.
- Consult a fee only retirement planner. If you think you need some additional guidance, you might consider working with a professional. You will be paying hundreds or thousands of dollars, but professional advice can pay in spades. Financial advisors are experienced and may be able to suggest ideas you may not have considered. Finding a fee only advisor is a good option for people struggling with debt, how to invest the money they have or people who need motivation and external pressure to save more.
- Start saving. It is never too late to save. You can save your tax refund, if you aren’t doing so already. You may put the money into an IRA or simply into a savings account. You might also want to use the retirement calculator to find out how much you will really need for retirement. Sometimes seeing this number can be great motivation to take action. Sound interesting? Learn more about catch up savings.
- Consider home equity. You may be able to access your home equity by downsizing, renting out a room in your home or through a reverse mortgage or a home equity line of credit. Learn more about tapping housing and home equity for retirement.
- Get creative with work. Retirement nowadays is more of a transition for most people and not a specific date. Part time work, a retirement job and sabbaticals are all ways to transition to retirement instead of going cold turkey.
