Editor’s Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC will update as changes are made public.

While it’s never too early to start setting aside money for the future, the last 10 or so years before you retire are certainly crucial to reaching any sort of savings goals.

To retire by age 67, experts from retirement-plan provider Fidelity Investments say you should have eight times your income saved by the time you turn 60.

If you are nearing 60 (or already reached it) and no where close to that number, you’re not the only one behind. A 2020 TD Ameritrade report, which surveyed 2,000 U.S. adults ages 40 to 79 with at least $25,000 in investable assets, found that 28% of those in their sixties have less than $50,000 in retirement savings.

Though Fidelity’s guideline takes into account your retirement contributions and your investments, in addition to any cash savings, it certainly can still seem a lofty goal.

Whether or not you are close to having 8 times your salary set aside, there are a few financial things you can work on checking off your to-do list that will open up room to save more as you prep to step away from the workforce.

Pay off your debt

In addition to cutting expenses by following a budget, living within your means and perhaps downsizing to a smaller home, it’s important to pay down your high-interest debt (like on credit cards).

If you have any outstanding credit card balances, pay them off now so it’s not a burden chipping away into your retirement fund later on. If you don’t pay off your balances in full, credit card debt can stick around for years

warren buffett hank paulson
U.S. Treasury Secretary Henry Paulson (L) shares a laugh with financier Warren Buffett, Chairman and CEO of Berkshire Hathaway, at the Conference on U.S. Capital Market Competitiveness in Washington March 13, 2007.

  • Warren Buffett phoned Treasury Secretary Hank Paulson at the height of the 2008 financial crisis with a suggestion that likely saved the US economy from an even deeper recession.
  • The famed investor and Berkshire Hathaway CEO proposed the government plow capital directly into banks instead of only buying their distressed assets.
  • Paulson quickly gathered the bosses of the nation’s biggest banks and convinced them to accept billions of dollars in investment.
  • The Treasury demanded preferred stock paying chunky dividends, as well as stock warrants in return, emulating Buffett’s bailout of Goldman Sachs in September 2008.
  • Former President George W. Bush called it “probably the greatest financial bailout ever” and said it “probably saved a depression.”
  • Visit Business Insider’s homepage for more stories.

Warren Buffett made a late-night call on Saturday, 11 October 2008 that likely spared the US from an even more devastating financial crisis.

The billionaire investor and Berkshire Hathaway CEO dialed then-Treasury Secretary Hank Paulson, the pair said in “Panic: The Untold Story of the 2008 Financial Crisis,” a documentary released in 2018.

“Hank, this is Warren,” Buffett said. A tired and groggy Paulson’s first thought was, “My mom has a handyman named Warren, why is he calling me?”

Read moreThese 30 global stocks are positioned to stay on top in the 4th quarter as the contrast between a recovering economy and rising COVID cases keeps markets volatile, RBC says

Buffett was calling about the Troubled Asset Relief Program (TARP), which authorized the Treasury to spend $700 billion purchasing distressed assets from banks. Lawmakers passed it in a desperate effort to

  • Amazon purchased Whole Foods Market for an estimated $13.7 billion in 2017.
  • Founder and CEO John Mackey wrote about the merger in his new book “Conscious Leadership.” 
  • Mackey said that Whole Foods was looking for a buyer after hedge fund JANA Partners acquired 8.8% of the grocery chain’s stock.
  • In the grocery chain CEO’s mind, Amazon and Whole Foods experienced the business world’s version of “love at first sight.”
  • “We moved from dating to engagement to marriage in just a few short months,” Mackey wrote.
  • Visit Business Insider’s homepage for more stories.

 

Locked in a battle for the soul of his grocery chain, Whole Foods Market founder and CEO John Mackey awoke one morning in 2017 with a single question on his mind: “What about Amazon?”

In his new book “Conscious Leadership,” Mackey described the “whirlwind courtship” that precipitated his company’s estimated $13.7 billion sale to Amazon. With many Whole Foods Market employees and customers complaining about the changes brought about by the chain’s e-commerce parent company, the grocery CEO’s account provides more insight into the decision-making that went into the 2017 acquisition that shook the retail world.

Mackey wrote about when he first heard of New York-based JANA Partners’ decision to buy 8.8% of the grocery chain’s stock on March 29, 2017. The hedge fund, however, wanted “launch a campaign against Whole Foods.”

According to Mackey, when he discovered that JANA Partners intended to convince Whole Foods to push out its board of directors and sell the business to the highest bidder as a means of “maximizing short term profits,” he felt as if “all the sunlight and bright possibility had been sucked out of my world.” Mackey had long been disturbed by the fact that his company’s “remarkable track record of growth wasn’t enough for Wall Street.”

Mackey



a person wearing a hat and a body of water: Mum-of-three Paula says staying at home has been good for the family finances


© Paula A
Mum-of-three Paula says staying at home has been good for the family finances

The coronavirus pandemic has hit the global economy hard, but some people’s personal finances have never looked better.

Since the US shut down en masse in March, mum-of-three Paula, who lives in New Hampshire, has paid off some $20,000 (£15,270) in credit card debt the family had racked up in the aftermath of an unexpectedly expensive work relocation.

The 35-year-old’s job as an analyst ended in June, but her husband is still working and she benefited from a temporary $600 boost to weekly unemployment payments Congress approved in response to the crisis.

She put coronavirus stimulus cheques from the government towards the credit card payments, as well as thousands of dollars the family has saved since their children are not attending day care, preschool or summer camp. Already frugal when it came to eating out, the family has become even more so, she says. Their one big splurge has been bicycles.

“The quarantine has been very helpful to save money for us,” she says. “We were at home, which was madness, pure madness but… I think it saved us financially.”

Savings surge

The personal saving rate in the US – an average that reflects the share of income people have put away after spending and tax payments – nearly quadrupled between February and April, when it hit an all-time record of 33.6%.

Though lockdowns have eased since then, savings remain unusually high, boosted by government coronavirus assistance. In August, the personal saving rate in the US was 14.1% – greater than any pre-pandemic time since 1975.



chart


© BBC


The rise helped Americans’ household wealth rebound to a record high in the three months to July, while overall debt declined for the first time in

Editor’s Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC will update as changes are made public.

They say your 50th birthday is a milestone one, but it may feel like a lot. You’re at the height of responsibility: kids, a mortgage, college, impending retirement. No matter whether your goals have stayed on path or gone a bit off track, approaching 50 has its financial challenges for everyone.

If you have been building a family over the last decade or so, the support you’ve given to your children — food, school, housing expenses — can make a big dent in any savings you had set aside over the years. And by age 50, you’ve probably navigated your fair share of life’s curve balls.

But if you want to remain focused on retiring at 67, it takes some discipline in the years ahead. In fact, according to retirement-plan provider Fidelity Investments, you should have 6 times your income saved by age 50 in order to leave the workforce at 67.

Learn more: Here’s how much money you should have saved at every age

Although this guideline includes your retirement contributions and your investments, in addition to any cash savings, for many it can still be a difficult goal to reach. In a 2020 TD Ameritrade report, surveying 2,000 U.S. adults ages 40 to 79 with at least $25,000 in investable assets, nearly two-thirds of 40-somethings have less than $100,000 in retirement savings.

To think ahead if you are not yet close to your 50th birthday, or to dial back on your spending if you are, CNBC Select looks at how to save during these busy years.

How to preserve your savings as you near