“You can be young without money but you can’t be old without it.”Tennessee Williams  Cat on a Hot Tin Roof

I have been writing this blog in my head for weeks, but keep changing it. What can I write about retirement and growing old that hasn’t already been written many times over?

The uplifting articles I have read emphasize that many people are on a good track to grow old gracefully and retire comfortably.   Then, there are the other hand-wringing articles lamenting on how many people are not ready for old age, nor are they financially ready for retirement.

I decided to write to those who are not financially ready for retirement and old age. If you fall into the category of those financially ready, then do not read further, unless you have a little doubt about how ready you are.

So, how to get ready for a comfortable retirement if you haven’t saved much for that retirement? 

First:  Establish how much you will need.

You will most likely want to maintain your current lifestyle.  How much do you spend each month now?  That’s how much you will need.  So, use 100% of your current expenses, or if you can give up a few things, go for 90%.  Do not go lower.

Second  Extend that retirement age. 

If your planned retirement age  was 65, make it 70 and give yourself five more years to save.  If you planned to work until you left this world, think again, old age has a way of making you reconsider how long you want to work.

Third:  Get a part-time job.

Save every cent towards your retirement. There may be a temptation to work “off the books”, but the more you earn “on the books” the more you increase your Social Security benefits when you decide to take them

Fourth:  Understand Social Security and Medicare:                                          Not an easy task. Social Security is complex.  Learn all about your benefits. Sign up for an online account at www.ssa.gov to get an estimate on how much you will receive. Delay taking Social Security benefits until you reach your full retirement age of 67.   When you reach full retirement age you can continue to work without any reduction in Social Security.  If you believe that you will be able to get by on Social Security, take a good look at your Social Security statement and compare it to your current pay.  

Now from that Social Security figure realize Medicare premiums will be deducted.  And, Medicare will not pay for all of your medical expenses.  You will still need supplemental medical insurance to pay for what Medicare doesn’t cover. Realize also that Social Security payments are not necessarily tax-free.  If you do continue to earn money you could be liable for income taxes on your Social Security payments.

Fifth:  Cut your expenses to the bone.

Separate needs from wants.  A big expense for many is food.  Eat at home.  Carry your lunch. Drink your coffee from your thermos in a real cup. Cut cable TV.  A small antenna will bring in local channels and you can stream the rest.  Remember, you will be working part-time with less time to watch TV.  Reduce the cost of heating and cooling your home by installing programmable thermostats if you haven’t already done so.  A programmable thermostat can be bought for less than $30 and can pay for itself in a month.  Do note that when you are retired and staying home more, your heating and cooling costs will go up.

Sixth:  Improve your financial literacy. 

Use the internet to learn about stocks, bonds, mutual funds, Treasury Notes and Bills, and a host of other information relevant to retirement. For a one-stop shop of great helpful information visit  https://www.retireguide.com  Not only does this site provide investment information, but also  information on annuities, life insurance, Social Security, Medicare and other issues we face as we get older.

Another reference I recommend, that should be available in your library and/or online is Morningstar, a company that evaluates many types of investments, but that I find very useful in selecting mutual funds.  Go to Morningstar.com to learn more.

Last (but not least):  Stay healthy.

Exercise and eat healthy. The cost of medical treatment is a lot more than a pair of comfortable running (or walking) shoes.  Run, walk, bike, whatever will keep you exercising.  Substitute water for soft drinks.  Eat those salads and reduce your intake of meat.  It’s healthier and cheaper.

These  are just some ideas to get you started planning for your retirement if you haven’t already.  It would be nice to say that it’s never too late, but if you are approaching 65 and haven’t set aside anything for retirement, it is too late.  So get started today – not tomorrow, today.