Age 50 is around the time you should be maximizing your earnings potential and getting serious about retirement, if you haven’t been already. Decisions you make at this point are even more important than ones from 10 or 20 years ago because you can start to see retirement as more of a realistic part of your future instead of something that seemed very far away.
In order to keep you on track to meet your goals, Wichita Center for Rehabilitation and Nursing has a look at five mistakes people make in their retirement planning at the age of 50.
- Planning to Work Past Your Target Retirement Age
You may feel great now and enjoy working, but even for those who plan to work past their retirement age and even into their seventies have a 50-50 chance of falling short of that goal. Studies show that 48% of people retire sooner than planned, whether its due to a job layoff, health concern, or family situation.
- Making Panic Moves
Don’t suddenly veer from your retirement course and become too risky or too conservative on your investments. If you’ve been following a plan for many years, continue to do so. If you’re worried about your portfolio, consult with a financial planner before making any drastic moves.
- Not Taking Advantage of Age-Related Benefits
Contribution limits to employee-sponsored 401(k) plans, individual IRA, and Roth IRA accounts all go up when you reach age 50 to allow those who may be behind in their savings to catch up a bit. Even if you’re on track, continue to max your contributions if you can afford to do so.
- Taking on New Debt
Whether you’re still carrying credit card debt or considering taking on new debt (for a child’s college education, for example), it’s not a wise move when it comes to your retirement. If you’re willing to help out your children as they embark for college, have the loan put in their name and then just make monthly contributions if you want to help out.
- Not Carrying Life Insurance
Life insurance premiums often skyrocket from 50 to 60, as health conditions may worsen in that span. If you don’t have a life insurance plan, now is the time to get one while premiums will still be on the low side. Also consider disability insurance in case you were to lose or suffer a reduction in income.
To learn more about Wichita Center for Rehabilitation and Nursing and all of the services they offer, visit http://wichita-center.facilities.centershealthcare.org/.
