How to Save For Retirement When You Are In Your 50s
If you've hit the half-century mark, you might be closing in on retirement. In fact, the average American retires at age 62.1 With that horizon in sight, do what you can now to make the future as bright as possible.
Here are four tips to help you protect yourself in these crucial years:
Contribute more to tax-advantaged retirement plans.
One great way to catch up is to contribute more to tax-advantaged plans, including individual retirement accounts (IRA) and workplace plans like a 401(k). If you're 50 or older, you are eligible to contribute beyond the maximum annual contribution limit. Check here for IRS Contribution Limits.
Tackle debt.
One thing that can keep you from saving for retirement is lingering debt. By the time you're 50, one big debt hurdle you may have left to clear is your mortgage. Without a mortgage to pay for, you could focus on saving or investing. Paying off your home will likely take time, but in the long run, it's worth it.
Create a Health Savings Account (HSA).
Another important step to take is preparing to cover unexpected medical costs. Large medical bills can quickly deplete a lifetime of savings.
One option is long-term health insurance, which pays for extended medical care, including nursing and assisted living. If you qualify, you should also consider opening a health savings account. Learn more here.
Meet with your financial advisor.
It is important to schedule meetings regularly with your financial advisor. They will work with you on your retirement planning journey to ensure you are on the right path. Schedule an appointment with our Peak Wealth team here.