If you’re hoping to retire sometime within the next decade, 10 years may not feel so far away — but when it comes to finances, are you where you thought you’d be with your retirement savings?
Being in your 50s can come with a lot of extra baggage. Sure, you might make more money than you did in your 20s, and maybe you’ve paid off your student loan and put a major dent in your mortgage. But, as part of the sandwich generation, you may also be paying for your kids’ college tuitions while simultaneously taking care of your aging parents.
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Add in rising interest rates and inflation, and your retirement goals may have had to take a back seat for more immediate priorities in recent years.
If you’re not on track to meet your retirement savings goals, it doesn’t mean the life you’d hoped to enjoy in your golden years is completely out of reach — you still have time to shore up your finances. Granted, you might not benefit as much from compounding, but there are other ways to ramp up your savings.
Here are three smart money moves to make right now.
1. Increase your retirement savings contributions
First off, if you have a 401(k), consider upping your contributions; if possible, try to take advantage of your full employer match.
Remember, even a small amount can add up over time. For example, if you’re 55 and earn $80,000 a year, a 1% annual increase could add up to an additional $16,779 by age 67, according to calculations by Fidelity Investments.
Of course, not everyone has a 401(k). If that’s the case, you still have options. You could contribute to an individual retirement account (IRA), which allows your money to grow tax-free. The annual contribution limit for an IRA is $7,000 for 2024, while those aged 50+ can take advantage of catch-up contributions — allowing you to contribute an extra $1,000.
Read more: Jeff Bezos and Oprah Winfrey invest in this asset to keep their wealth safe — you may want to do the same in 2024
2. Diversify your investment accounts
You probably won’t want to put all of your eggs in one basket. If you’re in your 50s, it’s not too late to start diversifying your investment accounts.