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This is an educational estimate, not financial advice.
What this means for you
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Retirement Planning at Age 50
At age 50, you're in the home stretch with about 15 years until traditional retirement age. This is when catch-up contributions become available, allowing you to save significantly more each year.
Key Advantages at 50:
- Catch-Up Contributions: Extra $7,500 in 401(k) and $1,000 in IRA for 2024
- Higher Earnings: Likely at peak earning potential
- Clearer Picture: Better understanding of retirement needs
- Reduced Expenses: Children may be independent
2024 Catch-Up Contribution Limits:
- 401(k): Additional $7,500 (total of $30,500 for those 50+)
- IRA: Additional $1,000 (total of $8,000 for those 50+)
Recommended Actions:
- Maximize all catch-up contributions
- Consider working a few extra years if behind
- Review and adjust your asset allocation
- Plan for healthcare costs in retirement
Compare IRA & 401(k) Providers
| Provider | Account Types | Typical Fees | |
|---|---|---|---|
| Provider A | IRA, Roth IRA | 0.25%–0.40% | Open account |
| Provider B | IRA, 401(k) rollovers | $0 trading, ETFs | Open account |
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Delaware Retirement Tips
- Check Delaware-specific tax treatment for retirement account withdrawals.
- Look into any state-sponsored retirement plans or special rules for Delaware residents.
- Benchmark your savings rate vs. Delaware median income if available.
- Consider Delaware cost of living when planning your retirement budget.
FAQ
How much should I have saved by age 50?
By age 50, aim to have saved 6 times your annual salary. If you're behind, maximize catch-up contributions and consider working a few extra years.
What are catch-up contributions?
Catch-up contributions are additional amounts you can contribute to retirement accounts starting at age 50. For 2024, it's $7,500 extra for 401(k)s and $1,000 extra for IRAs.
Is it too late to save for retirement at 50?
It's never too late! While challenging, you can still build meaningful retirement savings at 50 by maximizing contributions, taking advantage of catch-ups, and potentially working a few extra years.