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