Take Advantage of the Extra Benefits in Your Retirement Plan
Catch up contributions are all the rage when you turn 50! The IRS will allow you to add more money to your savings accounts, so now’s the time to push some of your funds towards them in order to ensure a better financial future for yourself.
Most types of 401(k) will accept an additional $6,000 annually, while you can add an extra $1,000 to an IRA. If you’ve fallen behind, make sure to add these extra dollars to your accounts, as, in theory, your 50s are your highest earning years of your career.
Finding the motivation to save, however, is the biggest challenge many seniors have to face. A good place to start is to think of all the things you want to do during retirement, then research how much they would cost. Now, compare those costs with your monthly spending- can the things you want fit into your budget? If not, then that’s your sign to add more to your savings!
