5. Take Advantage of Catch-Up Contributions
If you’ve felt that pang of fear due to our earlier point because you haven’t started saving early, don’t worry. Catch-up contributions will surely help you make up for lost time.
Once you turn 50 you’ll have the possibility of adding an additional $6,500 to your 401(k) plan. Overall, this means you’ll be able to set $26,000 on a yearly basis, compared to the usual $19,500.
This should, of course, help you out considerably during your last working years, just make sure you move your finances around accordingly in order to be able to do this. It’s never too late to save.
