No retirement savings in your 40s? Here's what to do now

^{Published on 2024-12-10 06:41:09 - The Globe and Mail}

"Imagine yourself in retirement; imagine what your retirement actually looks like and what you're doing," she says. "It sounds hokey, but it's based in science. Studies find that we view our future selves as strangers, and that disconnect makes it hard to take financial action, to protect that future self."

The article from The Globe and Mail discusses strategies for individuals in their 40s who have not yet saved for retirement. It emphasizes the importance of starting to save immediately, even if it's a small amount, due to the power of compound interest over time. Key suggestions include increasing contributions to retirement accounts like RRSPs or TFSAs, reducing high-interest debt, and possibly downsizing lifestyle to free up more money for savings. The article also advises on the potential need to adjust retirement expectations, such as working longer or planning for a less expensive retirement lifestyle. It highlights the importance of financial planning, possibly with the help of a financial advisor, to create a tailored strategy that might include catch-up contributions, investment in growth-oriented assets, and reassessing one's risk tolerance. Lastly, it encourages not to despair but to take proactive steps towards securing a financially stable retirement.

Read the Full The Globe and Mail Article at:
[ https://www.theglobeandmail.com/life/article-no-retirement-savings-in-your-40s-heres-what-to-do-now/ ]

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No retirement savings in your 40s? Here's what to do now