If you are 55+, you still have plenty of time to increase your retirement savings. This time period between turning 55 and retirement is crucial as you now see retirement in the near future and have a better idea of when you plan to retire. You also may stand to consider living expenses such as moving into 55+ communities. Here are some retirement tips you’ll want to act on right now if you’re 55+.
Max Out Funding on Your 401(k)
Your 401(k) is an easy and automatic way to invest. One of the best parts about it is that you don’t need to pay taxes on any contributions until you withdraw while retired. Since your 50s and 60s are typically your highest-earning years, it is the perfect time to make sure you are maxing out on contributions.
Consider an IRA
Whether or not you have a 401(k) through your work, you may want to consider opening an individual retirement account or IRA. IRAs can be either a traditional IRA or a Roth IRA. These two options have different tax rules and contribution limits, so you’ll need to do your research first to determine which is best for you.
Understand What You’ll Have Coming In
To best plan for your retirement, you’ll need to understand what retirement income you can expect. For example, if you work or have worked in a job that offered a pension, request a copy of your individual benefits statement every year. This statement will show you what retirement income you will have coming in and when they become vested. Like many people, you also probably qualify for social security. As long as you have contributed to social security for 10 years or more, you’ll receive social security retirement income.
Retirement should be a peaceful and relaxing time in your life. Keep in mind that people who reach the age of 80 live another eight to 10 years on average, according to the Center for Disease Control. This means there may be more years ahead than you think and you may be moving into 55+ communities. To ensure you get to enjoy your retirement, plan ahead financially and consider these retirement tips. You’ll thank yourself in the future.