Seniors may need to accelerate retirement savings
Money Management International offers advice on playing retirement catch-up
HOUSTON, Sept. 10, 2013 /PRNewswire-USNewswire/ -- 2.6 million American jobs were lost in 2008, making it the worst year for jobs since World War II. Even if you remained employed, chances are good that your long-term financial plans – including your retirement savings – were deeply impacted.
If you are getting close to retirement and don't feel comfortable with the amount of money you have saved, Money Management International offers the following strategies you can use to catch-up. (www.MoneyManagement.org)
- Catch up retirement contributions - If you are 50 or over, and are currently participating in a 401(k) plan, you may be eligible to make catch-up contributions to your 401(k). Catch-up contribution provisions also exist for those who contribute to IRAs. For more information, visit www.irs.gov/retirement-plans.
- Save extra in non-retirement accounts - You can also save extra money in your other, non-retirement accounts for later use. Revisit your budget, and see where there are areas that you can cut back in order to free up extra money for savings. You could also take another job now, or find other ways to create more income.
- Change your retirement investment strategy - Another way you can work to increase your retirement investments is to revisit your investment strategy. Consider consulting with a personal finance professional to discuss your investment options. Seniors should review their investment strategies and rebalance their accounts at least once per year.
- Postpone your retirement - Working even one year longer than planned can make a big financial difference. You might also consider working in a different capacity, such as becoming a consultant. Don't rule out the possibility of embarking on an entirely different career path.
About Money Management International
Money Management International (MMI) is a nonprofit, full-service credit-counseling agency, providing confidential financial guidance, financial education, counseling and debt management assistance to consumers since 1958. MMI helps consumers trim their expenses, develop a spending plan and repay debts. Counseling is available 24/7 by phone and online, and by appointment at branch locations. Services are available in English or Spanish. To learn more, call 866.490.9477 or visit MoneyManagement.org.
SOURCE Money Management International