retirement

Saving for retirement in your 50s

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 59½ 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.

News alert Create a news alert for "retirement"

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jennie Phipps

How super-sized should IRAs be?

A new report by the Government Accounting Office urges Congress and the IRS to crack down on over-sized IRAs.  ... Read more

advertisement
Partner Center
advertisement

Connect with us