Retirement Planning For 50-Somethings (and over)

When your in your 50′s, retirement planning is more important than ever, especially considering many retirees can expect to live well into their 90′s (some, into their 100′s). So, if you retire at age 65, you’re potentially looking at 30 or more years of retirement to pay for. That means you’d better have enough savings to cover it.

If you’re already 50, but aren’t prepared for your retirement… get help NOW! You might want to check out a few online calculators to start (here’s a retirement planner from Bankrate.com), then go speak with a professional (maybe an accountant). Ask someone you trust to recommend one.

You may find that you have some catch up to do, but its not all bad news. Tax laws do allow some “catch-up” contributions for those over age 50. For example, in 2008, individuals over the age of 50 are allowed to save up to $20,500 in a 401(k) and up to $6,000 in an IRA. (To find out how much you can put in your 401(k), try this 401(k) Savings Calculator from Bankrate.com).

Having trouble coming up with the extra money? If you have credit card debt, pay that off immediately (or, at least, as fast as you can). Then, use the money you were sending to your credit card company every month to supplement your savings. If you’re having to make a choice between long term care insurance and retirement saving, experts recommend that 50-somethings save for retirement… then shift their money into long term care insurance in the 60′s.

Sign up for our free newsletter

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash. It doesn't cost a dime, so why wait? Click here to sign up now.

Investing made simple

Betterment is the easiest way to get started investing.

Click here to learn more (and get $25 free!)

You don't need to be a Wall Street Wizard to build a quality stock portfolio. Money Talks News has teamed with Betterment to make it simple. And there are no fees or minimums to get started.

Simply drag a slider to decide how much risk you're willing to tolerate, and Betterment will build a portfolio for you. Why not try it now?

Comments & discussion

We welcome your opinions, but let’s keep it civil. Like many businesses, we reserve the right to refuse service to anyone. In our case, that means those who communicate by name-calling, racism, using words designed to hurt others or generally acting like an uninformed bully. Also, comments that include links to email addresses or commercial websites typically aren't posted. This isn't a place to advertise your business.