If you're 50 or older and you don't have a good amount saved for retirement, you need to take action quickly. This piece from USA Today gives some thoughts on how you can catch up on your retirement saving. Here are the highlights:
For millions of boomers who hit 50 this year, or did so recently, the prospect of retirement looms closer than ever. Many aren't financially ready. The median amount saved in a 401(k) plan by people 50 to 59 years old — meaning half have saved more, half less — is just $53,400, says Hewitt Associates, which studies retirement issues. Even the average saved — which is overweighted by people who've saved a lot — is just $115,260 for that age group.
Can you say "working in retirement"? That is if these people can afford to retire at all.
Fortunately, USA Today offers some ways to help you catch up:
- Take advantage of catch-up contributions.
- Look at your budget -- if you have one. If you don't, consider starting one.
- Check out your pension.
- Consider your home and home equity.
- Consider professional advice.
- Rethink when you're going to retire.
- Get more active.
Good advice overall. I'm doing well in this area for the time being as I'm just over 40 and have a sizeable nest egg saved already. Plus, I plan to fully contribute to my 401k for as long as I'm working.
Sound advice. Glad I surfed by and read this!
Posted by: John | January 21, 2006 at 09:59 AM