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Saving for Retirement: Successful Catch-Up Stories. Interview with Becky Heptig.
Saving for retirement can be challenging at any age, but what if you haven’t even started? I think it is helpful for baby boomers to hear that it’s possible to catch up retirement savings, even after a late start, from someone who’s done it.
Let’s learn from others who have used their creativity to increase savings and maximize retirement catch-up strategies in my new interview series, Saving for Retirement: Successful Catch-Up Stories.
If you have a retirement catch-up story to share and would like to be considered for an interview, please contact me.
We’ve all heard statistics about baby boomers who have very little saved for retirement. You may even be one!
The good news is that it’s not too late to catch-up retirement savings. I wanted to highlight some success stories about catching-up retirement savings after a late start. I’m excited to share Becky’s story about saving for retirement because she did not begin to save for retirement until age 50.
Like me, Becky is a baby boomer who found herself in the uncomfortable position of having too little retirement savings. Find out how she and her husband successfully turned their financial situation around by making some strategic changes.
I’ve highlighted my comments and questions for Becky in bold italics. Here we go!
Table of Contents
Get To Know Becky
Becky, what would you like to share with readers of the Baby Boomer Super Saver blog, to help us get to know you a little better?
I grew up in Houston and met my husband, Stephen, when we were both in college. After graduation, we got married. We have three grown children, and 2 grandkids.
Stephen retired on 12-31-18 and we moved to Colorado. We have a house in the mountains with a view of Pikes Peak. Hobbies include sailing, snow skiing, quilting and driving race cars.
I’m 63 years old and hubby is 64.
Have you retired yet, or are you still working and saving for retirement?
Stephen retired almost a year ago. I worked for 8 years and quit when we started having kids.
My parents moved into an apartment we built onto our house when our kids were young. About the time the kids were in high school, my dad passed away and my mom’s eyesight diminished to the point that I started having to care for her.
So I went from being a stay at home mom to stay at home daughter.
Career Path: Spending Instead Of Saving
Please give an overview of your career path, highlighting what you did or didn’t do along the way when saving for retirement.
Husband was a commercial architect and the sole provider for most of our lives. We didn’t save for retirement, didn’t save for college, and didn’t have an emergency fund.
We bought stuff and played hard. By the 3rd year of our marriage, we had a house, new cars, a new sailboat and a yacht club membership.
Figured we’d do that saving and adulting stuff later.
Hubby was involved with large architectural firms as well as start-up architectural firms over the years. He had issues with the ethics of some of his colleagues and decided to start his own business. He worked at home for 9 years. We loved him being there and he was making a modest salary.
At about year 8, he had two clients that didn’t pay him (equal to about 1 year’s salary). With no emergency fund, it sent us over the edge. We also had no college savings and our kids were getting near college age.
Our financial situation got so bad it almost took our marriage.
Becky’s Retirement Saving Surprises
What surprises (good or bad) have you encountered in your effort to save for retirement and how have you handled them?
- The impact of investing fees were a surprise, which we fixed soon after becoming aware of what they were costing us.
- How quickly we could recover because of my husband’s salary was a pleasant surprise. We had a BIG shovel once we started saving.
- That I went from being the spender to a pretty decent saver.
Becky’s Plan To Catch Up Retirement Savings
When did you realize your retirement savings were inadequate? Who or what helped you develop a plan to catch up your retirement savings? Was there a book, blog, or podcast that inspired you?
We realized our inadequacy when our situation got so bad. It was extremely painful and we realized something had to change.
The first turnaround happened when Stephen took a W2 job. We had a steady income and paid off our business and consumer debt. (We had been buying groceries with credit cards).
Second step was when we found Dave Ramsey. This helped us to get on a budget. It also changed our mindset.
Changing our mindset was probably the biggest step we took. It was like God was waiting for us to start making wise choices and as soon as we did, He started blessing the choices we were making.
Never Stop Learning: Podcasts & Blogs
Finding ChooseFI made a big impact on us also. We took what we had learned from Dave Ramsey and put in into overdrive. In addition, we learned about investing from JLCollins‘ The Simple Path to Wealth; and the retirement planning spreadsheet and advice from The Retirement Manifesto.
Becky’s Steps To Retirement Savings
What were the major steps you took that helped you successfully catch-up your retirement savings? How did you modify your life, including your social life and activities? What went well, and what was challenging?
We started saving with Dave Ramsey. Got on a budget, started living more frugally, and got on the same page with each other (this is HUGE).
It didn’t take long to realize we could buy used cars and plan ahead for large purchases like Christmas, insurance, and plane tickets to see our kids who were attending college out of state. ChooseFI taught us about investing fees, travel rewards and tax optimization.
The biggest thing that helped us was that Hubby went to work for a large achitectural firm with a great salary. So, soon after we started saving, we had a BIG shovel. We trimmed our lifestyle down to save everything we could.
At the same time, we were paying for college. It was a blessing that our kids received great scholarships.
Our social life revolved a lot around activities at church, so we were able to have a social life without spending a lot.
What went well was, we had the same goals and worked together to plan ahead, which we hadn’t done in the earlier years. Challenges included getting a handle on big expenses like college and weddings and balancing those with saving as much as possible.
Misconceptions About Saving For Retirement After A Late Start
What do you think are the most common misconceptions people have when it comes to being able to pay for college debt-free, and when saving for retirement after a late start?
Most people think it’s too late. That there’s no way they can save enough with the time they have. If they are like we were and don’t know how to invest, then they think there’s not enough ROI (if you only use traditional savings accounts or CD’s ) for their money to grow in the time they have left.
People are not willing to reduce their lifestyle after years of consumerism. Lots of people are supporting their adult children to their own harm. One of the best things parents can do is teach their kids how to be responsible with money, so they don’t have to support them as adults.
Best Strategies For Building Retirement Savings Quickly
What are the best strategies for building up retirement savings quickly, for someone who didn’t start saving for retirement until later in life?
You have to save every dollar you can which means cutting your lifestyle and/or adding side hustles. If you are starting late, you may have to make deep cuts because your investing horizon is short.
The more you can sacrifice now, the better shape you’ll be in later. You may not end up where you’d like, but you can definitely improve over where you are now.
Our “Why of FI” became being able to retire at all, because there was a time when I thought we’d never get out from under the debt.
Don’t Let Fear Or Regret Stop You
Something else to be aware of is fear and regret. Fear can paralyze you or keep you from investing and growing your money. Regret will steal your motivation and forward progress.
We ALL wish we had started earlier.
You need to forgive yourself, get educated, find a mentor, find an accountability partner and MOVE FORWARD!
Summary: Saving for Retirement Becky’s Retirement Savings Story
Thank you, Becky, for sharing how you were able to successfully catch-up your retirement savings. It was amazing to learn how you took what seemed like a hopeless situation and turned it around completely. Your story is truly inspiring, especially since you didn’t start saving for retirement until age 50!
Becky and her husband used several strategies for catching up retirement savings, such as:
- Stephan found a better paying job with a dependable paycheck.
- They got on the same page, created a budget, & lived below their means.
- Their mindset around personal finances shifted, putting their goals within reach.
- Following a plan and taking steps to get out of debt.
- They continued to learn from others to maximize their savings.
Becky’s story shows us that it’s never too late to make a change, take action, or reach for that goal to fund a better retirement.
You can learn more about Becky and her journey at her blog, Started at 50: Personal Finance Basics Through the Lens of Faith.
I have additional ideas for catching up retirement savings after a late start, which I learned when I discovered the Financial Independence Retire Early (FIRE) community.
How the FIRE Community is Going to Change Your Retirement Strategy
If you would like to continue to receive inspirational stories and creative ideas to help you catch-up retirement savings, sign up for my blog and never miss an update!
Are you behind in saving for retirement? It’s not too late – you can begin catching up your retirement savings today. Your tomorrow will be much brighter as a result.
I started late (law school…) but have since tried to fill my retirement plan up quite a bit… you never know when something will take you out of the market (like a chronic illness :-() Plan for the worst, enjoy the best.
That is so true, Lisa! My husband became disabled and unable to work at the young age of 55 – way earlier than we expected or planned for.
Most of us think these things will never happen to us, but they do. Thanks for stopping by and sharing your perspective!
I love this article! So many stories are about people who started early but no matter how late you started you can still save!
Thank you, Robyn! It’s a story that needs to be told because older people often think there’s nothing they can do if they didn’t start saving years earlier.
For those of us who put off saving for retirement, I think the message is that it’s never too late to start saving. You may not retire early (I’m way past that age, lol), but anything we save now will help us to live more comfortably later, when we are no longer working.
Nice to hear an over-50 success story — too much media focuses on doing things as quickly as possible, e.g., 30 under 30 lists. It’s also nice to hear a success story about finding a great job later in life. That isn’t always the case. More work is becoming gig economy, part-time, project-oriented, so all workers (Boomer or not) need to prepare for that new reality.
Glad you enjoyed it, Caroline!
Thanks for reading & commenting!
This is so inspiring. As a late starter myself, I love reading stories of other late starters’ journeys and confirming that it is never too late. Thank you for sharing
I agree, Latestarterfire, reading stories about people who were able to catch-up their retirement savings after a late start is so motivating! Learning how others have done it helps us realize it’s something we can do, too!
Your story is relatable and inspiring. I was just having this discussion with my 17 year old daughter. Both of my youngest children (17 and 21) have budgets and save x % of their paychecks. Trying to get them purchasing their first condo before they graduate from college. And me… Well you had me at: We bought stuff and played hard. 👏
Thanks, Grace, I’m so glad you found inspiration in Becky’s story! Financial literacy is so important, and not something we’re taught, usually. It’s great that you’re teaching your kids these important concepts.
Great article Kathy and super encouraging.
I have just started reading ‘the Barefoot Investor’ which has as nine step plan and then I will be reading Dave Ramsay. I want to compare the two approaches but I suspect there will be commonalities.
I’ve also subscribed to ChooseFI recently as well as retirement manifesto so this post makes me feel that I’m looking, listening and learning in all the right places.
Thanks for bringing all the good stuff together in the one place.
Shaun.
You’re on the right track, Shaun! It’s never too late to learn how to improve our money situation.
Becky’s story is so great as that it helps anyone realize that reaching that retirement financial goal is possible. The process may seem daunting but the opportunity is there once you open your eyes to it. Congratulations to Becky and her husband. Who’s next? 😀
When I was younger, retirement seemed so far away. I thought I’d always have time to save, so put it off. Trying to catch-up retirement savings after a late start can seem overwhelming, I agree. But it can be done, as these success stories prove!
I’m always looking for additional people to interview, Kristen! Do you know of anyone who caught up their retirement savings after a late start?
Hey Kathy–I’ll keep my ears open!
Thanks so much, Kristen!
Thank you for such an eye opening post. My husband and I are still fairly young and need to start our saving for our retirement. Like you’ve mentioned, “we all wish we had started earlier.” I need to take advantage of that now.
So glad you stopped by, Mai! You & your husband will be so far ahead of the game, and ultimately will have to save less (due to the magic of compound interest) if you start saving for retirement now.
Even if you start small, with only $5 per week, it will get you into the habit of saving. Go for it!
I love these stories of folks who started late but were able to close the gap and retire successfully. I’m honored that my blog had a small role in Becky & Stephen’s success, it’s the primary reason I write. Thanks for the mention, much appreciated!
Me too, Fritz!
Finding “late bloomers” who were able to turn their money habits around and catch-up retirement savings gives me hope & motivation on my own journey. Being able to encourage others that it’s possible is emotionally rewarding, also.
Thank you for all you do, Fritz! Your blog is one of my favorites, as well.
I love reading your articles. I’m 37 and just started my 401K and because of you, I know there is hope. I told my husband about your pizza delivery idea you mentioned on another post and he was shocked I’d even consider it, but the power of suggestion is strong! Since then, he seems to be getting more frugal every day and I LOVE it! Being frugal together makes a huge difference!
Aw, thank you so much, Rachel! Your comment made my day!
I’m excited for you & your husband, as it sounds like you two are going to be winning with your money in no time!
This was such an interesting interview to read! I don’t really know much about this topic, but you taught me so much just from this post. Thanks for sharing! 🙂
Thank you, Melissa! I hope it inspired you to start saving for retirement earlier than Becky or I did! The earlier you start, the less you have to save because of the magic of compound interest.
Oh, I missed the start of this series! More, more! Love this idea.
Thanks, Angela! I’m looking for more late-savers to interview – if you know of anyone, send them my way. I wonder how many millennials are worried about whether or not they’re going to have to help support their baby boomer parents. I think it gives hope to share these stories. It’s never too late to work on catching up savings!
It is interesting to read about saving up for retirement. I feel like I’ve been skimping out on saving for retirement. It is great that the savings helped out big time. Thanks for sharing the experience!
Nancy ♥ exquisitely.me
Yes, although it’s easier to save for retirement at a younger age (you can save less, but end up with more due to the magic of compound interest over a long time period), it’s great to know it’s never too late. Thanks for reading & commenting, Nancy!
I love this post! It is really interesting to read about this.
Amber – The Unpredicted Page – https://theunpredictedpage.com
So glad you enjoyed the post, Amber!
Thanks for sharing this post. It’s inspiring to see how not saving can affect people’s lives and nearly completely change them (nearly broke up marriage).
I’ll take these tips to work towards my early retirement.
Yes, I was also inspired by the way Becky & her husband were able to work together to catch-up their retirement savings. Another example of why it’s not too late! I’m happy you found Becky’s story useful, Mrs. D!
Becky and her husband show that retirement saving isn’t one-size-fits-all. Higher-income earners can make up ground far easier that modest or low earners, who don’t start early. I’m also glad that she was honest in revealing that money problems almost cost their marriage. People are still so naive about that.
That is so true, Miche Anni. It does help to have a bigger shovel! However, it can still be done with a lower income. I’ve been a social worker for most of my career, which is a very low-paying job! I’m working to catch-up my retirement savings. Money issues are often cited as reasons leading to divorce. It’s so much better when both parties are on the same page with money.
Such a great story and information. Thanks.
Glad you enjoyed it, Retirestyle Travel. Thanks for stopping by!
It’s never too late to live below your means is a great tip. Thanks for the inspiring post.
Yes, living below your means was one of the number one tips from people featured in The Millionaire Next Door books. It’s so easy to get caught up in day to day living (and spending!) without focusing on the future. That was true for me. However, as Becky’s story illustrates, it’s not too late to catch-up retirement savings. Even after a late start. Thanks for reading & commenting, Sue!
Very inspirational story. So many great tips and motivation to draw from her story. Thank you for sharing and providing a path for people like me to follow.
Ladies Google the story of Ronald Reed a janitor that amassed 7 million. It’s never too late