Retirement is something we look forward to as we start getting older after so many years of work. Experts recommend starting a savings plan in the early years of our career, but for some people that might not have been possible. Financial expert Rachel Langlois from Cyprus Credit Union shares four different ways you can catch up on saving for retirement if you haven't yet started.
Ramp Up Savings
You may be at a point in your life where you have more disposable income, which means you should also be putting more in savings. If you are over the age of 50, you can contribute an additional $1,000 into your Roth IRA totaling $6,500 every year. You can also invest an extra $5,500 in an employer 401k resulting in a total of $23,000 each year.
Take a look at your taxes and take advantage of your available deductions. You can then put these savings towards your retirement. This may not be for everyone, so it`s a great idea to sit down with a professional so they can help you through the process. Our investment services team can help you customize strategies to fit your vision when it comes to retirement.
Although it`s not ideal, it`s better to put in the extra time and retire better prepared. During this time, you can also receive a higher social security benefit. Full retirement age isn`t until 66 or 67, but if you wait until 70 to claim benefits, they can increase by about 8% per year. After turning 70, there are no more increases.
Pay Off Other Debt
Getting rid of things like a car payment or a mortgage will help save you money in retirement life. Keep paying off those credit card bills monthly. Leaving a balance may cost more in interest over the years. If you have a lot of equity in your home, consider downsizing or refinancing all together.
For ideas on how you can start saving for retirement at any age, check out our by the decade planning for your 20`s, 30`s, 40`s, 50`s, and 60`s.
For more financial tips, visit cypruscu.com.