Late Starter? Retirement Savings Strategies
Over 50 and just starting to save for retirement? It's not too late. Remember that you aren't just saving to get to your retirement date but for the rest of your life. The National Endowment for Financial Education (NEFE) has produced a handy Guidebook to Help Late Savers Prepare for Retirement (large 5.9 MB file).
Here are several strategies experts recommend that can increase your retirement income:
- Increase your contributions to tax-deferred retirement plans. Check if your plan allows individuals over age 50 to make larger “catch up” contributions.
- Pay off debt — such as credit cards and other loans — more quickly so that those monthly payments can then go to retirement savings.
- Take advantage of tax-exempt and tax-deferred investments to possibly lower your tax burden.
- Diversify your investments to reduce your risk of loss from the decline of any one investment.
- Have multiple savings plans.
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