Most people find that they are not, so here are some ways that people over 50 are choosing to stretch their resources and find more economic security.
Utilize Retirement Catch-Up Programs: The IRS offers an opportunity for individuals who are 50 years or older to increase their yearly retirement contributions through catch-up contributions. This provision allows people who may be underprepared for retirement or those who want to further bolster their already-healthy retirement savings to invest more each year as they approach retirement age. The specific catch-up contribution limits vary depending on the retirement plan and the year, but you can get more information about these contributions by consulting with a financial planner or reaching out to the IRS. More information can be found on the IRS website’s “Retirement Topics” section titled Catch-Up Contributions: bit.ly/retirement-topic
Wait on Social Security: Signing up for social security benefits as soon as you are eligible seems appealing, but there are pros to delaying. Those who opt to receive benefits starting at 62 receive a reduced amount, while those who hold off receive approximately 8% more year after year. Those who choose to delay until they are 70 to claim their benefit end up with about 132% of the regular benefit amount, meaning they will experience less financial pressure as they age.
Stay in the Workforce: As people approach retirement age, some are opting to stay in the workforce longer. To make savings stretch, continue in your current career, transition to a different company or explore a new industry. Depending on ability, staying in the workforce can alleviate financial strains and many times enhance well-being. Working part-time or in a less stressful position can make work more appealing and enjoyable. In addition to financial benefits, staying employed can also provide social and emotional advantages.
With more baby boomers entering retirement every year and the uncertainty of social security benefits or other financial means for the future, it is wise to develop a plan early to make sure retirement savings can last as long as you do!
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