2. Play Catch-Up
Being behind on retirement planning can be discouraging. But rather than focus on what you didn’t do when younger, focus on what you can do today. If you’re younger and anticipate working another 10 or 15 years before retiring, use this time to catch up and beef up your retirement savings.
“Starting at age 50, investors can contribute an extra $6,000 to their 401k for an annual contribution of $24,000, and an extra $1,000 to their IRA for an annual contribution of $6,500, per current IRS rules,” Williams said.
Boosting your retirement contributions might seem impossible if you don’t have a lot of disposable income. Just know that any sacrifices you make now to save more can have a tremendous impact on your nest egg. Hitting your goal can be as simple as taking one or two fewer vacations a year, or saving windfalls you receive. These include tax returns, an inheritance or a year-end bonus.
