So what is the secret to saving successfully for retirement? Well the answer that all of you have been searching for is actually a basic concept: saving! There really is not secret formula. Are you disappointed by my answer? Well, I’m sorry to tell you this, but this is reality.
However, when I say saving, I am not talking about just accumulating a large amount when you are still working and once you reach retirement you stop saving. According to recent studies, those wealthy retirees that we all admire continue to save even into their retirement! The reason being, they are so used to the habit of saving, that they just can’t help themselves. These individuals save an average of at least 31% of their income even after retirement.
What do I mean by income? Well, there are several sources of “income” once you reach retirement, the normal sources include, your 401(k), Social Security, savings accounts, pensions, etc. However, many of these wealthy retirees continue to hold a part-time job even after they retired! This is done not only to keep themselves busy, but also for an additional source of income on top of normal retirement funds.
Having a continual inflow of income even after retirement will prevent your retirement savings from running out. This will also provide a security cushion just in case an unpredictable emergency event occurs as well. If there is an emergency, you will be able to withdraw money without worrying about not having enough left over for the rest of your retirement! Because you still have an additional source of income, you will have much less financial burdens weighing on your shoulders.
The bottom line is that in order to retire successfully, you need to have a secure income source and save accordingly. You shouldn’t just let loose and spend all you want once you retire, especially if you have a limited amount of funds. Saving is still a habit that you need to possess in order to be wealthy, rich, and retired. That, is not much of a mystery!