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If youre in this situation, youre not alone.
For retirees with little or no savings, the key is to act now, she said.
Whether that means cutting expenses, finding new income sources or maximizing benefits.
In total, more than one in four retirees have no retirement savings, according to a recentClover survey.
Credit card debt is at an all-time high, Saccaro said.
If youre makingcredit card payments, life costs about 20% more because of interest.
He said lifestyle creep is another common reason people get stuck in this cycle.
Every time they get a raise, instead of saving, they upgrade their lifestyle, Saccaro added.
Its usually a spending issue.
He said feeling entitled to live a certain lifestyle even if they cant afford it wrecks their financial future.
I know a waiter who worked in the same restaurant for over 40 years, Saccaro recounted.
He never made more than a waiters salary, yet he managed to save over $2 million.
The difference all comes down to spending habits, according to the expert.
Prices will keep rising due to inflation, and most retirees still want to enjoy life, he said.
Especially doing things they didnt have time for before, like traveling which isnt cheap.
Just like when you were working, financial discipline is still crucial.
Thats an 80% return on their money from day one.
Another mistake people commonly make is failing to think about taxes, he added.
Its better to diversify betweentraditional and Roth accountsto allow for tax-free growth and better control over taxes later.
In reality, most unexpected expenses are pretty predictable, he said.
Prioritizing spending over saving can help ensure these expenses dont derail your retirement, Saccaro concluded.
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