Inflation is super stressful, and not only because of the higher costs now but also because of what it means for our futures. It’s a huge concern for retirement savers because a rising cost of living means they’ll need a larger nest egg to cover all their expenses. And some are struggling to set aside anything for retirement as it is.
Saving more for retirement often means diverting a larger percentage of your income to retirement savings, but this can be a challenge for most people, especially with record inflation. Fortunately, there’s another way to boost your savings without taxing your budget further today – but it comes at a cost.
How to save more and slash your retirement expenses
Delaying retirement helps you save more by giving you additional time to save. You can continue to live off your paychecks and set a portion aside for retirement. In the meantime, the money you’ve already invested for retirement will continue to grow. You might experience some losses, especially amid recessions, but if you leave your retirement savings alone, there’s a good chance it will rebound when the market recovers.
Retirement regret:Consider these factors before you decide to work again.
Earnings test:How does it affect your Social Security benefits?
Pushing back your retirement date also makes your retirement shorter and, by extension, less expensive. If you’d initially planned to retire at 60 and expected to live to 85, you’d have to save enough to cover 25 years of living expenses,…
