Published: October, 2019
Updated: December, 2020
Feel behind schedule when it comes to planning and saving money for retirement? Regardless of how far behind or how old you are, it's never too late to start planning for your retirement years.
Contribute to the Maximums
Once you turn the age of 50, you become eligible to start contributing more into your 401(k) and IRAs. According to the 2020 and 2021 IRS guidelines, you are able to contribute an additional $6,500 above the $19,500 limit (totaling $26,000) into your 401(k) and are able to contribute an additional $1,000 above the $6,000 limit (totaling $7,000) into your IRAs. Consider maximizing these contribution limits, as these extra savings will be beneficial during your retirement years.
As you approach retirement, try to pay off any outstanding debts, including paying off your mortgage, credit card bills, and other loans. Eliminating this debt will decrease your monthly retirement expenses.
Save As Much As Possible
Take a look at your current financial situation. Try to eliminate any unnecessary spending and expenses. Your saving efforts will be worth it during your retirement years. For more tips on saving, read our Money Management Tips.
Extend Your Date of Retirement
By extending the date of your retirement by a few years, you could save more for retirement. You could also incur Social Security benefits. If you were born between 1943 and 1954, you are eligible for retirement at age 66. If you were born in 1960 or after, you are eligible for retirement at age 67. If you extend your retirement date beyond these ages, you may receive 8% per year in added Social Security benefits, each year delayed.