Are you one of the smartest who can retire at the 50’s and below? Yes, there are people who contributed a significant amount to their retirement plans in their early 20’s or 30’s, so they could retire at the age of 50.
However, if you aren’t one of the few and you’re turning 50 this year, then you need to capitalize on what experts say when you reach 50. What was that? Catch up. Yes, one of the most important things 50’s can do for their retirement savings is to catch up. So today, we’ll be talking about the Top Financial Tips – Catching Up for 50’s.
Notice that even the industry demonstrates this – employer-sponsored retirement accounts and individual retirement accounts have this so-called “catch-up contributions”. This will allow investors to put away more money in their accounts beginning the year that investor turns 50.
This is basically because the majority of the population, not only in the United States but also around the world, are undersaved when they reach retirement. By your 50’s, you should have saved four or five times your annual salary in order to ensure your stress-free retirement – according to the experts. Unfortunately, there are a lot of people just can’t afford to retire yet because of undersaving for retirement in their earlier years.
People are expected to live longer in the future. So in reality, future retirees need to push away anxiety over potential money problems and get to business. Take into account all expenses you’ll possibly incur in retirements, such as health-care costs and bills and save, so you’re not one of the many people who is undersaved for retirement. That being said, you need to take small steps in your 50’s to get to where you’d like to be in the future.
You may not be able to hit the number you were hoping for, but any number or amount you add now will definitely improve your lifestyle in the long run. You have to think of it incrementally.
At your 50s, you’ve probably been working hard for your money in decades by now. To have a stress-free retirement is a great goal, so you need to make the most of your finances and retirement planning. You can start with determining the appropriate age to retire, becoming familiar with health insurance, like Medicare, and understanding your pension and how it’s protected.
Midlife is indeed filled with challenges and opportunities. Your children might be financially independent and earning their own money soon or any kids related costs should be behind you – or so you hope. While losing your job maybe a bigger risk now that you’re older, you’re also likely at the peak of your career at your 50’s.
Experts say that when you’re making the most is also when you should squirrel away most. According to studies conducted by Hearts & Wallets, some 40% of successful savers – built nest eggs equivalent to 10 times pay – did so by saving 15% or more of their incomes for at least 10 years. So, Here are the Top Financial Tips – Catching Up for 50’s: