Behind At 50? Don't Despair Over Retirement—5 Ways To Fix Things
Although Americans often begin saving for retirement in the earlier stages of their life, retirement becomes much more real around the time they reach 50. If you're hitting this milestone without the level of savings you want, here are a few tips to get better prepared on any income.
Meet With a Planner
A retirement planner is one of the best investments that you can make in the last decade or two of your working career. They have tools to better help you estimate your retirement needs,
Get Your Numbers Together
You can't make a plan if you don't know what you're working with. So, spend some time gathering all your financial data in one place. Locate old, forgotten 401(k) or IRA accounts. Consolidate these into current accounts. Accurately value your major assets. Add up all your debts. This isn't always the most pleasant of tasks, but it's the best way to start improving on what you have.
Look at Benefits
What benefits are you getting from your employer? Does it include a good retirement plan, matching contributions, or even a public pension? If not, this may be a good time to negotiate for better retirement benefits. If that's not possible, consider moving to another employer who offers more that can help you. You may even find that boosts your income too.
Build Secondary Income
If retirement savings may not cover your full retirement needs, secondary income is a big help. What skills do you have that you can use to create a long-lasting income stream? Can you use your education, industry-specific skills, or work experience to make a side hustle? What about passive income through investments? Can you do consultation work? Turn a hobby into a small business? These can last well into retirement.
Make Catch-Up Contributions
At age 50, you can make higher contributions to many retirement and tax-advantaged plans. Use these to their fullest. Learn about options for doubling up on contributions, such as contributing to an IRA while being covered by a 401(k) or a public 457 plan and a 401(k) at the same time. With diligence, you can make up for some lost time.
Where to Start
No matter where you stand—or think you stand—when it comes to retirement planning later in your career, start by meeting with a qualified financial planner. They will work with you to take advantage of all your choices and get back on track for a healthy and happy retirement.
Contact a local retirement planning advisor to learn more.