Continuing to serve you in a thoughtful way.

Throughout the challenges of recent months, we’ve continued to safely serve investors’ needs. We are thoughtfully evaluating our office openings and in-person appointments. Learn More

Behind on Retirement Savings? Tips to Catch Up.

October 26, 2020

In a perfect world, everyone would start saving for retirement in their 20s, never have a financial setback and retire early with a healthy nest egg. The reality is life doesn't always go as planned. If saving for retirement has taken a back seat to other priorities in your past, there are steps you can take to catch up.

Put the power of three to work for you. Time (how long you save), money (how much you save) and return (how much your investments earn) are the three key variables that influence whether you'll achieve your goals. Your financial advisor can run different scenarios to show you how small changes to each can make a big difference.

Time (and Money) – Can you save more or retire later?
Take a close look at where you're spending your money. You may have opportunities to save more. And if your retirement date is flexible, pushing it out a few years could dramatically improve your retirement lifestyle. You'll have more time to save and earn a return on your investments, and it could also increase your Social Security benefits, providing you with more income in retirement.

Source: Edward Jones 

1 Assumes Full Retirement Age (FRA) is 67 (for individuals born after 1/1/1960). Assumes a $1,250 contribution to 401(k)/IRA at end of every month until retirement, plus a 6.5% average annual return; income rounded to the nearest $100, portfolio values to the nearest $5,000.

2 Based on a formula from Assumes $60,000 salary.

Money - Take advantage of catchup provisions
Once you reach age 50, you can contribute more to your retirement accounts, including 401(k)s and Individual Retirement Accounts (IRAs).

Return - Ensure your investments align with your goals
Avoid the temptation to invest too aggressively to try to make up for lost time – this could increase the risk that you don't meet your goals. However, it's important to make sure your investment strategy includes the proper amount of risk needed to achieve your desired return.

Are you actually behind? A comfortable retirement means different things to different people. Working with a financial advisor who knows you and your goals can help you define what retirement means for you, determine the amount needed to achieve it and weigh trade-offs to get you on track – wherever you are today.

Edward Jones Perspective Newsletter

Want our free e-newsletter sent to you each month? Ask your financial advisor to sign you up.

How Much Risk Should I Be Taking?

The biggest risk you face is not in the stock market—it's the possibility of not reaching your long-term goals.

Do I need an IRA if I have a 401(k)?

In many cases, you don't need to choose one over the other – we see value in exploring if an IRA may be right for you even if you already contribute to a 401(k).

Find a Financial Advisor

Find a Financial Advisor

Select a State and then enter a last name

    Are you ready to retire?

    Adjust your inputs to see the effects on your retirement calculation.

    Use our calculator

    How Much Do I Need to Save for Retirement?

    We can provide you with some clarity by focusing on some key questions you can ask yourself now.

    Read more