5 Ways to Optimize Your Retirement Savings In Your 50s

glamour.com:

Finance ’n Stilettos points out that once you turn 50, the IRS lets you put more pre-tax dollars into your retirement account with “.” The exact dollar amounts will change annually, but here’s the breakdown for 2022: Those under 50 can put $20,500, pre-tax, into a  401(k), 403(b), 457, or TSP plan.

Anyone 50 or older can make a catch-up contribution on top of that, up to $6,500, pre-tax.Having $1 million in savings is one broad-strokes retirement rule, but you may want more (or less) depending on where you want to live, whether you plan to travel, etc.

To ensure you don’t hit age with too little in the bank, you’ll want calculate an estimate now if you haven’t already. For specific guidance, Stefanie O’Connell-Rodriguez, author of The Broke and Beautiful Life and founder of .

suggests “meeting with a [certifed] or using an online retirement calculator to estimate how much you’ll need to save based on your projected expenses in retirement.”It’s safe to assume that your health will decline as you age—and you don’t want to get stuck draining your retirement savings (penalties be damned) to pay medical bills.If your home is paid off, consider how to costs of ownership (maintenance, taxes, etc.) and renting stack up. “Selling your home sooner and becoming a renter might [free] up funds that you can invest in a more flexible and liquid retirement portfolio,” O’Connell-Rodriguez says.