You still have time to prepare for retirement after 60.
There is still time to improve your retirement finances in the years leading up to retirement. By reviewing how much you have saved and thinking about how much longer you want to work, you may be able to update and improve your retirement plan.
Here are some guidelines:
Conduct a Financial Inventory
Decide what you need to support your lifestyle.
Don’t forget to include what you want out of retirement. (travel, hobbies, etc)
Focus on income generation and distribution.
Take Advantage of Catch-Up Options
If you have access to a 401k, and over the age of 50, you can make a catch-up contribution of $6,500 in 2022.
If you have more than one IRA (i.e. traditional and Roth) you can contribute $7,000 total combined.
Prepare Your Living Space and Transportation
Make home repairs and updates. (fix that leaky roof, replace ac units, replace appliances, etc.)
Do major car maintenance and repairs.
These repairs can be easier to manage while you still have full income.
Factor in Health Care Costs
Compare all your options
Consider drug costs, doctor networks, ancillary benefits.
Decide When to Take Social Security
Take SS early or later?
Continuing to work? Be careful if you are under FRA (full retirement age), watch out for the “penalty”
Ask us for a Social Security Timing Report
Don’t Overlook Taxes
Certain retirement accounts will be subject to income tax.
Social Security can be taxed up to 85% depending on your income level.
Figuring out how to structure your retirement income can be overwhelming. If you have not started, or if you would like a helping hand, attend one of our Retirement Workshops or call us for a meeting! 713-955-7522