Need to boost your retirement? Do you realize it costs hundreds of thousands of dollars to raise a child? When the kids finally do leave home, parents often spend nearly as much money on travel, fixing their home up, buying a new car, and other costly purchases. Many continue to pay for their children’s college, health insurance, and car payments. The problem with this is that empty-nesters are not saving up enough money for their own retirement. According to Boston College’s Center for Retirement Research, tax-deferred 401(k) retirement accounts receive less than one percent of that extra empty nest income. Additional research found that only 48% of working-age households will able to support their current standard of living once they stop working. To make saving easier, encourage your children to apply for scholarships and loans. They will have time to pay off their loans, but you can’t apply for retirement loans and scholarships. Help yourself by using online programs that compile your budget and warn you when you are exceeding specific thresholds. Set aside a specific amount of money you would like to save each month or schedule transfers from your bank account to your brokerage account. Doing these little things can mean a much more comfortable retirement.
(From “Empty Nest, and Pockets?” By Anne Tergesen)
Help Boost Your Retirement When You Become an Empty Nester
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