Only 1 in 3 Older Americans Are Using This Smart Trick to Beef Up Their Savings
Nearly four in five Americans age 40 to 79 have less than $500,000 saved for retirement, according to a recent TD Ameritrade survey, and roughly one in three in that age group has less than $50,000 saved.
I probably don't need to tell you that's a huge problem. The average household headed by someone 65 or older spends over $50,000 per year, and with people living longer, it's not impossible to think retirement could last 30 years or more, which easily brings the total cost up over $1.5 million.
When you start saving for retirement later in life, you're at a disadvantage because your savings don't have as long to grow before you must begin using them. Fortunately, the government throws people 50 and older a lifeline to help them catch up if they got a late start. They're called catch-up contributions, but according to the TD Ameritrade survey, only about 31% of Americans who qualify are taking advantage of them. Here's a closer look at why you should join them if you can.
Source Fool.com
