Congratulations! You’ve reached your 60s.
Now you have a great retirement to look forward to — wait, you say you weren’t able to adequately plan for retirement?
No worries, the goal is still not out of reach!
Here are some thing you should consider if you hope to retire before you hit your 70th birthday.
Pick up your full employer match
If you have an employer match on your 401(k), now is the time to make sure you’re putting in as much as necessary to pick up the full match.
If you’re not, you’re leaving money on the table that could be yours. Employer matches can vary by a lot, but for many companies, the way it works is the employer will match maybe 50% of the worker’s contribution up to 6% — so if you contribute 6% of your annual salary to your 401(k), your employer will contribute 3%.
Play catch-up with your retirement contributions
The minute you become 50, you can start making an additional catch-up contributions to your 401(k), 403(b) plan or the federal government’s Thrift Savings Plan.
For 2017, you can make an extra $6,000 contribution. (That’s on top of the existing $18,000 contribution limit for these plans.)
If you have an IRA, the catch-up contribution is $1,000 above the usual limit for younger contributors. That means you can save $6,500 in an IRA in total this year.
Consider your personal disability quotient
Nobody wants their retirement plan fouled up by the inability to work in the latter years of their career!
Visit WhatsMyPDQ.org to assess your “personal disability quotient” (PDQ). This a free service of the Council of Disability Insurance. Your PDQ will predict the likelihood of you needing to use disability insurance during your working lifetime.
Once you have that info, you can make an informed decision about buying a short-term disability insurance plan.