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Are you on the other side of 45 and have little or no retirement savings? Have you ignored this most important stage of your life and suddenly find that retirement is looming?

Very few of us save enough for retirement and most people will fall short. Research has suggested that retirees will require about 60 to 70 per cent of their pre-retirement income to live just moderately well during retirement.

There are many diverse reasons why people find themselves in this precarious position.

Some have simply lacked the focus or discipline to save, whilst others find themselves at the centre of some catastrophic life event such as the loss of a loved one, a major illness, disability, or divorce that can have dire financial consequences.

Do a reality check

Be realistic about your actual situation – how prepared or unprepared are you? First, find out how much you have right now. Start by pulling together financial information such as your bank statements, and your projected pension payout or a gratuity, if you are fortunate enough to have one.

Take stock of all your assets. Even if you haven’t been saving as judiciously as you might have, you have probably built up some assets that could play a role. Then determine how much income you think you will need in retirement.

Finally, look for where that income could possibly come from.

Cut right back on your expenses

How much are you spending today? You must have a clear idea of where your money is going before you can ascertain where additional funds will come from. You will need to cut back drastically on any unnecessary expenses.

If you still have dependent children and elderly parents to support, prioritise and do only what absolutely must be done. If you have become the one stop shop for bailing out members of the extended family and friends, you really must learn to say ‘no’.

Retirement savings must become your priority and everything else has to take a back seat. Non-essential expenses like eating out often, travel, and shopping can easily get out of control.

Start saving as much as you can

It is important to seek professional advice. A financial advisor will dispassionately consider your current and projected circumstances. If you are in debt, start applying as much as possible to reduce this to free up money for retirement savings over time.

An advisor will recommend various options that might include an automated savings plan where funds are debited directly from your salary and into savings; this could include fixed income, balanced or equity funds, as well as other investment vehicles.

Don’t be too aggressive

You cannot afford to ignore your risk tolerance in your attempt to make up for lost time. Volatility is a reality in investing; as retirement approaches, there is little room for error and one must be more conscious of protecting the nest egg from the risk of loss.

A severe market downturn can be disastrous, as you will have far less time for the market to correct itself or for you to recover from poor investment decisions.

At the same time, you can’t afford to be too conservative and have inflation eat away at all your savings.

Your home can play a role

Do you have equity in your home? If your home is relatively valuable and your children have left home, if you are not too overwhelmed by sentimental attachment, a house that has appreciated in value can be sold and a smaller less expensive home purchased in its place.

Be conscious of the fact that falling property prices and a liquidity crunch have made it more difficult to sell property at a premium. If you live in an area with a high cost of living, moving to a less expensive area could make a big difference in your ability to amass a tidy sum.

Postpone retirement?

If you’ve done all your sums and clearly still won’t have enough in retirement, you have two choices: You may need to scale-back your retirement goals and lifestyle drastically, or you may have to postpone your retirement date.

Working a little longer or part time can improve your financial prospects significantly, as you will be able to invest these earnings and feed your retirement portfolio until you have to dip into it.

Leverage on your skills or talents

Can you create another stream of income to devote to retirement savings? Explore your options; it may well be something that you may have taken for granted and would do for free, that could turn into a side business.

Time is precious

No matter how precarious your finances might be approaching retirement, there is always some way to improve your situation.

You cannot make up for an entire career of not saving by trying to fast track your saving in the last 10 years of your working life. But there is enough time for you to make an appreciable difference in your retirement lifestyle.

Don’t let doubt or discouragement keep you from starting right away, regardless of your age.

All is not lost, but time is a critical factor, so don’t procrastinate a minute longer.