Did you know the median 401(k) account balance for Americans in their 50s is about $61,000?
Saving for retirement is a daunting task. How much money will I need? How much longer should I work? When should I start collecting Social Security?
With very few jobs offering a traditional pension these days, the burden of financial management is now on you, as an employee.
If you're in your 50s and feel your savings are not where they need to be, here are some steps you can take to boost your retirement account:
Make "catch-up" contributions. If you are 50 or older, you can make "catch-up" contributions to your 401(k). This year, you can contribute an additional $7,500 to your 401(k) and an additional $1,000 to a traditional or Roth IRA. That means the limit for your 401(k) contribution is now $30,500 annually.
Delay your retirement. There's no rule that states when you have to stop working. You can work until you're 62, 65, 70, or older. Consider a part-time job doing something you enjoy after you stop working full-time. If you work longer, you can save more and dip into your savings less, as you'll have a shorter retirement.
Wait a few years before you take your Social Security benefits. You can start to claim your benefits when you are 62, but if you wait a few years, you will receive more money on a monthly basis. Your benefit increases by 8% for every year you delay Social Security past your full retirement age until age 70.
Reduce your spending. Once you determine how much money you'll have after you stop working, you can determine if you need to reduce your expenditures to live within your means.
As you approach retirement, assess your current savings and your desired lifestyle, and then determine your best course of action to live that way.