If retirement planning hasn’t been a priority for you, now’s the time to change that, especially as you enter your 50s. Delaying further could limit your retirement options to just continuing to work. Here are steps to avoid that scenario:
- Maximize Catch-Up Contributions: As you hit 50, you can boost your retirement savings significantly. Contributions to an IRA can increase by $1,000 to $6,500 annually, and workplace retirement plans allow an extra $6,000, totaling $24,500 for 2018.
- Utilize an HSA: With a high-deductible health plan, open a Health Savings Account (HSA) for tax-free contributions and withdrawals for qualified medical expenses. Individuals can contribute up to $3,450 and families up to $6,900 for 2018, with an additional $1,000 for those aged 55 or older.
- Review Social Security Benefits: Explore your Social Security benefits to understand how they’ll contribute to your retirement income. Creating a ‘my Social Security’ account online can provide insights into your expected benefits.
- Consult a Financial Planner: Engage with a financial planner to map out your retirement strategy. Assess expenses, project necessary income, and ensure your investment portfolio aligns with your retirement goals.
- Plan for Long-Term Care: Start planning for potential long-term care needs by reviewing insurance options and evaluating your ability to self-insure. This proactive approach safeguards your assets and ensures comprehensive retirement planning.
Your 50s are pivotal for securing your financial future. By taking these steps now, you’ll build a solid foundation for a comfortable retirement.
