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StitcherOne day you’re sipping coffee, getting ready for work, and it hits you—you’ve got nothing saved for retirement. Cue the panic. But Jen and Jill are here to remind you once more: it’s never too late. In this episode, they talk about how just getting started now can still make a big difference.
Every little action counts.
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What Happens When You Don't Save for Retirement?
Investopedia’s article gave helpful cautionary tales on what may happen if one did not save for their retirement.
What Jen + Jill have to say:
Retirement means the end of a steady income and we should prepare for it. If your retirement time has come and you don’t have any savings or investments, you might live mostly depending on your social security. For Jill, social security is best as an additional income or personal savings. Also, you might live with a roommate or move in with your adult children if necessary. Many people who have not saved or invested enough for retirement, may end up scaling back in working.
Most people downsize their lifestyle even if they have saved, but Jen says if this isn’t the life you want, you may want to rethink about investing now for your retirement. The Frugal Friends has a spending makeover on frugalfriendspodcast.com/makeover. It will give you space and guidance on how to take an inventory of your things. From there, you can figure out how you can downsize.
7 Tips for Saving for Retirement if You Started Late
This article from The Balance will carry you through retirement and make you realize that you need to have the quality of life you want and give less burden to any of your familial caretakers.
What Jen + Jill have to say:
You can play catch up! Jill notes that you can save $22,500 in a 401(K) retirement plan ($19,500 in 2021). After you turn 50, you can contribute additional amounts. Anything with a limit, has a limit for a reason, so take advantage of these retirement plans. Do what’s going to make sense for you as it’s going to be less risky the older you get when you invest now. It is good to plan for the worst while not dwelling on the possibilities of the worst. Also, Jill advises that it would be better for you and your children if you continue to contribute and focus on your retirement saving plan.
Jen adds that firstly you will need to identify how much savings you may need in your retirement. Pay down all your high-interest debt, such as your Car loan, non-mortgage debt and more and open a Roth IRA to help you save more.
Biggest worry about our retirement
“How can I live life to the fullest while I maintain a level of health and prepare for what it may look like in the future?” Jill questions as she worries most about the unforeseen medical concerns on her retirement.
While for Jen, her greatest worry would be doing and living in retirement alone.
Bill of The Week
Thank you, frugal friend, for sharing your bill about your remaining car payment refinancing, and lowering your interest. AND paying the balance for the birth center on a payment plan with your HSA!
Thanks so Much for Listening!
Thanks so much for listening. We love love love reading your kind reviews of our book Buy What You Love Without Going Broke and we especially loved this one from:
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I truly LOVED reading this book. I got an Advanced reader Copy (ARC) back in December, and spent a few days reading it over Christmas, while taking LOTS of notes! From the opening introduction (which on a personal note, I loved as a teacher myself) to the additional research notes at the end, I was a very happy reader all throughout this book. This book was divided into three major parts, so I’ll just touch on some highlights from each one. In Part 1, I liked the exploration of impulse spending, and the comparison between curiosity and unhelpful thinking styles. In Part 2, I LOVED the breakout of different levels of replacements for shopping, and an explanation of how habits form. However, my true favorite part of the book was Part 3. The call to simplify the environment has me thinking of how I could structure decluttering challenges in my own life. The messages to learn about contentment and what generational biases about money might be lurking was truly enlightening. I loved this book and I’ll be buying another one to share with one of my friends…because I’m not letting go of my copy!
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