Rebounding from a late start to retirement savings

FALLBROOK – Some people do not have the ability to begin saving for retirement early on. Others may have brushed retirement savings aside for so long that they are now worried that it's too late to begin socking away money for retirement.

While it's best to start saving for retirement as early as possible, the good news is that it's never too late to start planning for retirement. If a person's 40th birthday has long passed and they are finally thinking ahead to retirement, consider these catch-up strategies.

• Research tax-advantageous retirement savings plans. A financial planner can point one in the right direction, or one can consult with his or her employer about employee programs. Deposit money into a 401(k) or 403(b) plan or another retirement vehicle. Jump on any opportunities when an employer matches invested funds. Investigate an IRA and find out if there are any government incentives. Depending on age, it may be possible to deposit more money into such accounts than other investors.
• Cut back on expenses. Cutting back on unnecessary expenses is a great way to save more money for retirement. Figure out where it's possible to save some money that can be allocated to retirement savings. Maybe it's possible to reduce insurance coverage on an older car or raise the deductible? Downsize cable packages or skip a costly cup of coffee on the way to work. Perhaps it's time to look for a smaller, less expensive home or a compact car instead of an SUV. Any money saved now will benefit a person later when the time comes time to bid farewell to the workforce.
• Delay your retirement. Many people who retire find themselves bored and looking for ways to fill their time, and as a result more and more people are delaying their retirement, which also gives them more time to save for that day when they do call it quits. If the desire is to work less, one could discuss and negotiate a phased retirement with their employer – working fewer hours until retiring completely. It may be possible to work part-time for several years and retire when one is most comfortable.
• Consider more aggressive funds. Even those who are 50 still have a few decades before retirement, which leaves lots of time to grow retirement savings. One may want to consider more aggressive funds that can help catch up more quickly than less aggressive investments. Just know that aggressive funds may also leave a person susceptible to substantial losses.
• Don't amass debt. If saving for retirement, but only paying minimum balances on credit cards, that's not saving. Pay down credit card debt before beginning to set aside money for retirement.

Delaying retirement planning may mean working a little harder to build up a solid reserve. But by following some financial tips and persevering, it's possible to enjoy retirement with security.