You’ve reached your 50s, and retirement is weighing more heavily on your mind than it did 10 years ago. Perhaps your savings isn’t as robust as you want them to be or your investments have taken a hit over the past couple of years.
Don’t worry. You can still move closer to reaching your retirement goals even as you get past middle age. Our experts will help you find out how to catch up on retirement savings in your 50s with a great plan.
Our financial advisors will discuss how to plan for retirement in your 50s, giving you the tools needed to move forward with a plan.
How to Prepare for Retirement in Your 50s
We’ll go through several concrete steps to help guide you through how to plan for retirement in your 50s.
Assess Where You Are Now
Perhaps the most important step in this process, assess where you are now in terms of your savings, investments, and financial standing. When learning how to catch up on retirement savings in your 50s, you need to write down everything you have now based on any retirement goals you set previously. Are you ahead? Behind? Right where you're expected?
Set Realistic Goals
Next, set realistic goals based on your current situation. Do you need to reduce your expenses? Can you put more money towards retirement or work towards preserving your wealth? Do you want the same lifestyle you want now?
Pay Down as Much Debt as Possible
As you figure out how to catch up on retirement savings in your 50s, start paying down as much debt as possible. Pay off credit cards, make an extra house or auto payment when you can, and lower your debt load so you can put more towards your savings every month.
Take Advantage of Tax Savings
You’ve got a few ways to take advantage of tax savings. You can start making catch-up contributions starting at age 50 when adding money to a 401(k) or IRA. Ordinary Americans can contribute $22,500 to a 401(k) per year. When you reach age 50, that number goes up to $30,000 annually.
Start putting money in a health savings account. Contributions to an HSA from your income are not subject to federal income taxes. As you age, your healthcare costs are likely to go up. You’ll need to set aside more money for your healthcare costs not covered by insurance. An HSA is a great way to do this.
Generate Income Beyond Your Investments
Are you passionate about something? Consider turning your hobby into a career as a side hustle to earn extra income. You can continue with this income-generating activity for as long as you need it. You can freelance, consult, or lend your expertise and experience to whatever you can.
Tap Into Social Security
When you’re ready, you can tap into your Social Security benefits. This extra income will help you manage retirement easier to manage, even if you didn’t contribute as much to Social Security as you would have liked. Every bit of income helps for retirement when you need to know how to plan for retirement in your 50s.
Learn How to Plan for Retirement in Your 50s With Our Team!
Ready to get more information on how to prepare for retirement in your 50s? Contact us for more information. We’ll help you navigate the financial aspects of your retirement plan and financial goals. Everyone’s situation is unique, so you should have a unique plan. We’ll assess your current financial status and help you realize your retirement goals.