What Steps Should I Take If I’m Behind on Retirement Savings? 

Retirement planning is one of the most important steps toward financial independence, yet so many individuals feel unprepared for it. Life happens, and there are countless reasons people may find themselves behind in their savings goals – unexpected expenses, career shifts or simply not knowing how to begin. If this sounds familiar, don’t panic. While catching up on retirement savings can feel overwhelming, you can still take action and set yourself on the path to a desirable financial future. Harvest Wealth Partners helps you take practical steps so you can move closer to your retirement goals.

Assess Your Current Financial Status

The first step to any financial plan is understanding where you currently stand. Start by calculating your net worth, which includes everything you own (assets) minus everything you owe (liabilities). Then, take a closer look at your existing retirement accounts or investments. How much have you saved so far? What are your monthly contributions, if any? Understanding this baseline will help you identify how far you need to go and create an effective plan to close the gap.

It’s also important to evaluate your expenses and income. Identify areas where you might trim costs and redirect funds toward your retirement savings.

Create a Feasible Savings Plan

Once you understand your financial position, it’s time to set clear savings goals. Determine how much you’ll need for retirement by considering factors such as your ideal lifestyle, healthcare costs and life expectancy. Start small if necessary. Even modest steps, like automating monthly contributions, can make a meaningful impact over time. The key is consistency. Prioritize retirement savings within your budget and gradually increase contributions as you’re able.

Explore Your Investment Options

Investing is key to conserving your retirement savings since inflation will erode your purchasing power over time. Stocks, bonds and mutual funds have growth potential, but the choice of investment vehicles depends on your timeline, risk tolerance and existing strategy. For those behind on savings, investments with higher growth potential can offer an opportunity to catch up, but it’s important to weigh the risks involved.

If navigating investments feels intimidating, know that you don’t have to go it alone. A financial advisor can recommend strategies tailored to your specific situation, helping you seek growth potential while managing risk.

Consider Employer-Sponsored Retirement Accounts

If your employer offers a retirement plan, like a 401(k), take full advantage of it, especially if they provide a matching contribution. Aim to contribute enough for the full match, and if possible, consider increasing your contributions over time.

For individuals 50 or older, catch-up contributions offer another opportunity to make up for lost time. Current IRS regulations allow you to contribute an additional amount to 401(k) and IRA accounts, giving you a chance to bolster your savings as you approach retirement.

Take Control of Your Retirement Today

Falling behind on retirement savings can feel daunting, but individuals can start saving and build a sound strategy. By assessing your financial situation, creating a customized action plan and utilizing available tools and resources, you can make progress toward a meaningful future. At Harvest Wealth Partners, we understand that every individual’s financial goals are distinct, and we’re here to guide you every step of the way.

If you’re ready to take the next step toward your retirement goals, contact Harvest Wealth Partners today. Our experienced team is dedicated to helping you create a personalized financial plan so you can feel confident about the road ahead.

Investing includes risks, including fluctuating prices and loss of principal. No strategy assures success or protects against loss.