For Middle-Aged Americans, There's Still Time to Save

Despite a booming economy and plenty of savings and investment options, a good portion of Americans are still not saving for retirement, or are way behind what they will need. A report last year said a third of Americans have next to nothing saved for retirement, and for middle-aged Americans that number is even higher. According to the Employee Benefits Research Institute, 37 percent of employees age 35 to 44, and 34 percent of employees age 45 to 54 have less than $1,000 saved for retirement.

The good news for those who haven't started saving or are behind schedule is there is still time.Derrick Kinney, Sugar Land private wealth advisor, tells KTRH that the 401(k) offered by most employers is a good start. "Most people think the 401(k) is enough, but in most cases it's not," he says. "Many people need to supplement that with additional savings."

If you do have a 401(k), Kinney recommends maximizing your contributions, especially as you get closer to retirement age. "At least put in what the company matches, so you take advantage of the free money," he says.

There is also another more drastic option to catch up on retirement savings, although it requires a two-income household. "Act like and live like you have one income, and try to save the other person's income as much as possible," says Kinney. "It's a proven strategy to make back for lost time."

For those who are at retirement age or just reaching that stage, Kinney recommends a phased-in retirement. "I have many clients who phase in their retirement over a five-to-ten year period," he says. "That lets their money last longer, which means they need to save less to have the lifestyle they want."

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