Is 50 too Late to Start Planning for Retirement?

Whether you’ve postponed your retirement planning or just haven’t taken as deep a dive into it as you would have hoped, you may feel as though you’re a bit behind the curve. The truth is–you’re not and chances are you’ve spent your time up until now tackling other important goals of yours such as raising a family, owning a home, and pursuing your career.

Does this story sound familiar?

The perfect example, very close to home is the story of Ben Tobias’ parents. When they were raising Ben and his brother on a civil servant’s salary, there was never much left to save or invest for the future. When the two boys finished college, their parents became empty-nesters while their salaries continued to increase with promotions and longevity. They maintained their same lifestyle, and saved growing proportions of their income. By the time they reached retirement age, they had sufficient savings to live comfortably during their retirement. We have similar journeys with many of our clients and friends.  

Why you shouldn’t put the horse before the cart.

Typically, financial advisors push people in their 20s and 30s to save as much as possible for retirement. The graphs are beautiful, showing how small sums of money invested now turn into large sums of money in the future. While that isn’t bad advice, there are other considerations to evaluate before stowing away your income into a retirement account at this stage of life. Everything has its time and place, and perhaps one’s 20s and 30s would be better spent saving for a home, a college fund, or paying down debt.   Too often we have seen funds put away for retirement, be withdrawn early for more urgent needs.

Additional earnings means additional savings.

Not only have we satisfied many of our other goals, often our maximum earning years don’t start until we reach our 50s. Having a solid grasp on personal lifestyle needs and having the freedom to save increased earnings at this age, enables many to make significant improvements to their retirement plan.

It’s time for self-care.

With your kids graduating or finishing college, your 50s open up to a period of being able to refocus on taking care of yourself and your spouse. Redirecting your attention and your savings to your retirement goals, will help ensure your future health and lifestyle needs are met. Whether you need to know where to start or if you’re ready to increase your savings, Tobias Financial Advisors welcomes your call.  

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