7 ways to catch up on retirement planning as you approach your 60s

If you are approaching your 60s and are overdue on retirement planning, it is easy to think that the money you save now will not be enough. Rather than giving in to feelings of discouragement, what those approaching 60 can do is start saving as much as possible and making other strategic moves right now.

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Make these changes to catch up with your retirement plans.

List your sources of advantage

When you start developing a retirement plan, start by identifying potential sources of income and benefits, said Sandra McPeak, CEO – Investments at Wells Fargo Advisors. Some of these may include the following:

  • Social Security
  • Medicare
  • Pensions
  • Military pay
  • 401 (k) and other investments, such as a traditional or Roth IRA
  • Health Savings Account (HSA)
  • Insurance, such as long-term care

Additional benefits may be available beyond those listed here. “It’s one thing to forget where you left the remote, but how is it possible you forgot an unclaimed or 401 (k) pension from a job you left 40 years ago, right?” McPeak said. “Trust me: it happens more than you think!”

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Log in to the Social Security website

The next step will be logging into the Social Security website. After you log in, you can see the benefits you’ve accrued and projections of the amount of Social Security you’ll receive monthly at various retirement ages, McPeak said.

Qualifying for Social Security and Medicare go hand in hand, and you can find out on the website if you have enough credits with Social Security. This also allows you to qualify for Medicare.

Workers can earn four credits per year, and it only takes 40 credits to qualify. McPeak said you may have accumulated enough credits working in your 20s, so don’t assume you won’t qualify. Senior couple using laptop with their financial advisor during a meeting in the office.

Max Out IRA or 401 (k) recovery contributions

Maximizing IRA or 401 (k) contributions is standard financial advice, whether you plan to retire now or in the future. The advantage that people over 60 have in their corner is the ability to pay annual recovery contributions into these accounts.

“This year, the recovery arrangement allows you to add an additional $ 6,500 to your 401 (k),” said James C. Valenzuela, RICP at Foothill Financial & Insurance Services. “Together with their maximum contribution of $ 20,500, that’s $ 27,000 they can save for retirement.”

Those with a traditional or Roth IRA can only contribute up to $ 6,000 per year plus another $ 1,000 over age 50. This adds another $ 7,000 to retirement savings.

Senior couple browsing the Internet together.

Review your spouse’s benefits from Social Security

If you are married, or even divorced, you want to review Social Security marital benefits.

McPeak said you could be eligible for a marital allowance as part of your ex-partner’s Social Security benefits if the marriage lasted 10 or more years. Those who qualify will receive the greater benefit of their own benefits or a spouse benefit once the former spouse has started the benefits. Elderly man using laptop.

Get strategic about when to apply for Social Security

Just because you can start getting Social Security benefits at the age of 62 doesn’t mean you need to apply for them immediately.

Although the vast majority of people apply for Social Security at the age of 62, they are blocking the lowest possible monthly payment for the rest of their lives, said Myriah Lipke, CFP with Stone Pine Financial Partners. Applying for social security at 62 means losing an 8% rate of return per year.

“If you’re a little behind in saving for retirement, seriously consider waiting until your full retirement age, or better yet, the age of 70, to start your social security benefits,” Lipke said. “If you’re getting $ 1,500 a month at age 62, waiting until you’re 70 will provide you with more than $ 1,200 in additional monthly income!” Elderly man talking on cell phone and using laptop on work table.

Work longer

Once you have combined your benefits and added them to your savings and investments, you will be able to calculate your daily living and health expenses. Those who feel they are still insufficient can increase their benefits by delaying retirement and continuing to work.

Your 50s and 60s, McPeak said, are typically the highest earning years in your career. You can work longer and take advantage of the “golden age” where employers want good people and are willing to train them. Or, consider a “comeback” which is an internship for adults who have been away from the traditional workforce for some time. These are gaining in popularity and can be ideal for individuals such as a military retiree or someone who has left their career to take care of children or elderly parents.

By continuing to work longer, you can continue to save and catch up on retirement planning. Thus, you will be able to end your career on a high note. an active elderly Chinese Asian woman discussing with her Chinese agent about her retirement investment plan.

Work with a financial advisor

If you are feeling too behind and are struggling to figure out what you can and cannot do in retirement, it is time to seek the assistance of a financial planner or advisor.

These people can help you create a retirement plan based on where you are now financially and set realistic expectations and keep you happy and content throughout your retirement years.

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This article originally appeared on GOBankingRates.com: 7 Ways To Catch Up On Retirement Planning As You Approach 60 Years

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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