If you have not saved enough money for retirement you have plenty of company. I wrote a little while back noting that most Americans are unprepared for retirement. Many people don’t get serious about starting their retirement savings until their in their late 40s or even their 50s. Of course, it is better to start saving earlier but for those of you who have gotten a late start still have a chance to save enough for retirement.
In order to save enough for retirement you will have to save a large percentage of your income. If you are aged 50 or older you can contribute an extra $1000 to your Traditional or Roth IRA. If you are self-employed you can contribute even more to your retirement accounts. If you have a Simple IRA you can contribute an extra $2500 under the catch-up provisions. If you have a 401k you can contribute an extra $5500. You can also make catch-up contributions to your Health Savings Account although that will be changing. Visit irs.gov to verify the amount of catch-up contributions you can make.
In addition to boosting your savings rate up to 20% or more you need to cut your expenses as well. This will allow you to live on a smaller nest egg. Making these changes won’t be easy but it is better than running out of money in retirement.