What to do if you're low on retirement savings in your 50s
Reaching your 50s means retirement is right around the corner. Okay, maybe not immediately around the corner, but it’s closer than ever. If your retirement savings aren’t up to par, it’s time to make some moves; there’s not a moment to waste. Here are some things to do.
With retirement coming closer and closer, it’s time to really cut back on expenses. Comb through your budget and see where you can trim the fat. Make your monthly budget as lean as possible without being miserable. Use that extra money to contribute to your savings.
One of the places you can funnel that extra cash from your budget is your retirement funds. And the good part about reaching 50 is that you can now make “catch up” contributions. You can now deposit more money into your IRA and 401(k) than younger people. With an IRA, you can make catch-up contributions of up to $1,000 per year. With a 401(k), you can make extra contributions of up to $6,500 per year.
If you weren’t planning on working during retirement, but your savings aren’t where they need to be, it’s time to rethink that strategy. You could get a part-time job as a way to keep money coming in and give your investments more time to grow. As USA Today reports, a part-time job is also a good way to transition to eventually not working at all.
- Chris O'Shea/SavvyMoney