How to Save for Retirement in Your 50s
So you're in your fifties and you either haven't started saving for retirement or you're well behind your peers ... is all hope lost? Not at all! Read further to learn how you can effectively save for retirement in your fifties.
Saving for retirement late in the game
While it's ideal to start saving for retirement as early as possible, you can still catch up if you've waited until late in the game. It's never too late to start saving for retirement, so get on track while the paychecks are still coming in.As soon as you turn 50, you can make IRS-approved catch-up contributions to your IRA or 401(k) plan. Put in the maximum contribution possible to make up for any lost savings. Bankrate offers a selection of retirement calculators to help you with smart saving.
Wait to withdraw
Retirement planners often recommend waiting as long as possible before you start making withdrawals from your IRA. While it's possible to make penalty-free withdrawals at age 59 from your IRA, it's better to let the money sit. After all, saving for retirement is about saving as much as possible.This also goes for Social Security benefits. Though you can start drawing Social Security at age 62, it's better to wait at least until your full retirement age. Social Security benefits are reduced if drawn early. If possible wait to withdraw until after your full retirement age to receive a "delayed retirement credit."
Getting some professional advice about saving for retirement never hurts. Seek out a Certified Financial Planner and ask for help setting and achieving your retirement goals. In the meantime, build your retirement knowledge by reading Bankrate's retirement section.