Retirement Planning After 50: Smart Income & Saving Tips

When people talk about retirement planning, the first thought is often “save more.” And while saving is crucial, a solid retirement strategy especially if you're starting after 50 needs to go beyond just putting money away. From managing income to understanding healthcare costs and choosing the right investment vehicles, this stage of life calls for a more intentional approach.

Starting Your Retirement Planning Late? You’re Not Alone

If you're in your 50s and just beginning to focus on retirement, you're in good company. According to the Federal Reserve, nearly 25% of Americans over 50 have little to no retirement savings. The good news? You still have time to make meaningful progress with the right retirement savings strategies.

Understand Your Retirement Income

One of the most overlooked parts of retirement planning is income. It’s not just about what you save it’s about how that money will pay you back once you stop working.

Think of retirement income planning as creating your own paycheck. This could include a combination of Social Security, 401(k) Retirement Plan withdrawals, IRA Accounts, annuities, or even part-time work. The goal is to balance predictable income with growth potential while minimizing taxes and penalties.

401(k), IRAs, and Catch-Up Contributions

If you're over 50, you qualify for “catch-up” contributions on both 401(k)s and IRAs. In 2024, the IRS allows people over 50 to contribute up to $30,000 to their 401(k) Retirement Plan (including catch-up), and $7,500 to an IRA.

Not sure which retirement plan fits your situation? A financial adviser can walk you through the pros and cons of each based on your timeline, goals, and risk tolerance. Traditional and Roth IRA Accounts both offer unique tax advantages, and the plan often depends on your current and expected tax bracket.

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Risk Management Is Part of the Plan

As you get closer to retirement, protecting what you've saved becomes just as important as growing it. That’s where risk management comes in.

Market volatility can hit hard if your portfolio isn’t balanced properly. Too much risk, and you may lose money you don’t have time to recover. Too little, and your money might not grow enough to outpace inflation.

Diversifying your assets and rebalancing your portfolio regularly are smart ways to keep your risk in check. And remember, financial planning is not a one-size-fits-all process—it should adjust as your life does.

Worried about how inflation might impact your retirement? In our latest post, we break down simple ways to adjust your plan so your savings stay on track—no matter how the economy shifts.

Healthcare Costs: The Hidden Retirement Expense

Many people underestimate healthcare costs in retirement. According to Fidelity, the average couple retiring at 65 will need about $315,000 for out-of-pocket healthcare expenses over their lifetime not including long-term care.

Considering long-term care insurance or incorporating healthcare savings into your plan is something worth exploring. It’s not just about managing illness it’s about maintaining your lifestyle and independence.

Legacy Planning: It’s Not Just for the Wealthy

Estate planning is another part of retirement that often gets overlooked. Having a will, power of attorney, and clear directives in place ensures your wishes are honored and makes things easier for your loved ones.

It’s not just for people with large estates. It’s for anyone who wants to protect their family and avoid unnecessary stress during difficult times.

Not Sure Where to Start?

Retirement planning for beginners doesn’t have to be overwhelming. If you're asking yourself what financial advisor can help me figure this out?, the good news is you don’t have to do it alone.

Working with a financial adviser especially one experienced in retirement-focused financial planning and analysis can provide clarity and peace of mind. Whether you’re in Tacoma or simply searching for “financial planning near me,” having someone who understands your goals can make all the difference.

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