Here’s what your finances should look like in your 50s
By Alessandra Malito May 12, 2022
By the time you’re in your 50s, it’s a good idea to spend some time thinking about when you want to retire and what your expenses might be.
My SSA
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You can prepare for your Social Security benefits by using a My SSA account on the Social Security Administration’s website, which provides estimates based on claiming dates, or run some scenarios of retirement income and needs with one of the many calculators available online.
Retirement accounts allow catch-up contributions for those 50 and older, so now’s the time to increase your savings.
401(k)
IRA
Max. $20,500
Max. $6,000
You can contribute up to an additional $6,500 in your 401(k) plan and $1,000 in your IRAs in 2022.
Add. $6,500
Add. $1,000
Build up funds you can tap should there be a market downturn at the start of your retirement so you won’t be forced to sell investments or withdraw during volatility.
That can save you from the sequence of returns risk, which suggests doing so could lower your future potential returns.
Talk with a financial planner or an adviser at the firm housing your retirement accounts to review your asset allocation.
Just like in the decades leading up to this one, keep analyzing your spending. And begin estimating what your budget may look like in retirement between your spending and any retirement income sources you may have, such as Social Security or a pension.
Photos by: iStock/Getty Images Story by: Alessandra Malito Google Web Story by: Amelia Langas
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