Save as Much as You Can

In the last decade before your retirement, you’ll likely be much more financially secure than when you started saving. Take advantage of this and remember, this is your last chance to put away as much money as possible, even if it means temporarily pausing big expenses.

If you’re over 50, then you absolutely must do anything in your power to take advantage of catch-up contributions. For your IRA, you can set aside up to $7,000 per year in 2021 as opposed to the regular $6,000. You can also squirrel away up to $26,000 of your income into a 401(k) compared to the usual $19,500 for younger people.

In fact, in terms of 401(k) plans, most experts recommend saving around 15% of your income during the final decade before you retire. Use this as your base number and adjust up or down depending on how much you’ve saved already and how much you’ll actually need (refer back to step 2).