Retirement is a time for relaxing, spending time with family and friends, and enjoying the fruits of your labor. But if you feel like you haven’t saved enough, those golden years can quickly lose their luster. That’s why it’s essential to start planning and saving as early as possible. However, if you’re a late-stage retiree and still haven’t saved enough, don’t fret.
In this post, we’ll explore six catch-up tactics to help give your retirement savings a boost.
1. Fully fund your 401k
Your employer-sponsored 401(k) plan is one of the most useful tools in your retirement arsenal. You can’t afford to let this opportunity pass by. If you’re over 50 years old, you can contribute an additional $6,500, which can make a significant difference. So, if your company matches your contributions, try to contribute as much as you can.
2. Contribute to a Roth IRA
A Roth IRA is another excellent way to supplement your retirement savings. With a Roth IRA, you can invest your after-tax dollars, and the earnings can be withdrawn tax-free in retirement. If you’re over 50, you can contribute an additional $1,000 to your IRA account.
3. Consider home equity
If you own a home, you have a valuable asset that you can tap into to supplement your retirement income. There are several ways you can use your home equity, such as reverse mortgages, home equity loans, or home equity lines of credit.
4. Take advantage of your deductions
Make sure you’re taking advantage of all the deductions you’re entitled to. For example, if you’re over 65, you can claim additional standard deductions, and you may be able to deduct medical expenses.
5. Tap into cash-value policies
If you have a cash-value life insurance policy, you can use the savings component to supplement your retirement income. Depending on the policy, you may be able to withdraw money tax-free, borrow against the cash value, or even roll it into a different account.
6. Get disability coverage
Disability coverage is essential, particularly in your senior years when you may be more vulnerable to injuries and illnesses. Disability insurance can help provide a steady stream of income if you’re unable to work due to a disability.
Retirement planning is essential at any age, but it’s never too late to start. Implementing these six catch-up tactics can help give your retirement savings a boost, so you can enjoy your golden years with peace of mind. Remember, it’s never too late to take control of your financial future.
Source: Investopedia
The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. Please consult your certified financial advisor.