When you first start saving for retirement, it’s fun and exciting. You watch the money begin to grow and you realize that someday, you’ll use that money to support yourself while you fritter away your days by the pool, on the beach, playing golf, gardening or reading a good book. But after a couple of decades of saving—when you’re still a couple more decades from retiring—the thrill of saving for retirement can wear off. When this happens, you need a quick retirement pick-me-up.
Once you’ve gotten used to the same old amount being saved each week, unless there is some meteoric rise in one of your holdings, the growth of your retirement account might become more predictable than thrilling. But if you can start saving more—even just another 1 to 2 percent of your income—then your account balances will grow even faster, which can help you get excited and reenergized.
Rebalance Your Portfolio
It’s natural for a retirement portfolio to have times of slow-to-no growth and even times of losses. But if your portfolio hasn’t been doing much growing in the past five or more years, it’s very possible that you aren’t in the right positions or that the portfolio is out of balance thanks to various losses and gains. Working with an advisor to rebalance your portfolio will help refocus it on the right risk tolerance for you while giving it an update based on current market events and trends.
Create a Postretirement Budget
Another move that can help recharge your dedication to retirement savings is to actually look at what your postretirement income needs are going to be. Sometimes, seeing how much money you’ll need to live comfortably gives you the motivation you need to get refocused and dedicated. To do this, simply create a hypothetical postretirement budget. Include expected Social Security distributions in your income and be sure to consider the effect of inflation on your monthly bills.
It doesn’t matter whether you’re feeling bored or energized by the idea of saving money—you still need to be putting money aside for your retirement years. Getting recharged can make the process more exciting and help increase your devotion.