If you’re over 40 and haven’t started saving for retirement, don’t despair. Many people find themselves in the same boat, but it’s not too late to build a nest egg. Fidelity suggests that by age 40, you should have three times your salary saved, but many fall short. The key to catching up lies in strategic savings and smart investing. Start by contributing to an IRA or 401(k) and consider investing heavily in stocks, which have historically returned an average of 10% annually. For instance, saving $300 a month at a 10% return could yield around $354,000 by retirement. Additionally, extending your career can significantly boost your savings, allowing your investments to grow further. By saving diligently, investing wisely, and potentially working a bit longer, you can recover from a late start and approach retirement with greater confidence.
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