79% See Retirement Crisis Looming; Experts Urge Boosting Savings Now
Alarmingly, 79% of respondents in a 2024 survey believed a retirement crisis is looming, a significant increase from 64% in 2020. To combat this, experts suggest boosting retirement savings through various means.
Enrolling in a company's 401(k) plan and contributing up to the maximum limit is a smart starting point. Additionally, saving outside of a 401(k) plan with an IRA or Roth IRA can further bolster retirement savings.
To make the most of these savings plans, consider increasing contributions gradually, perhaps by 1 percentage point each quarter. This approach allows for steady growth without feeling the pinch all at once.
Downsizing living spaces, such as selling a larger home, can provide a quick boost to savings by reducing living costs. Furthermore, continuing to work part-time in retirement can help bridge financial gaps and maintain mental wellbeing.
Investing wisely is also crucial. The Motley Fool often suggests investing in dividend stocks, real estate investment trusts (REITs), and index funds to potentially boost retirement income.
With 47% of families potentially not having saved enough for retirement, it's clear that action is needed. By saving more, continuing to work, reducing living costs, and investing wisely, we can all help mitigate the looming retirement crisis.
