In this last installment of our special series on retirement planning by age, we'll discuss last minute saving tips for those in their 50s. It may be difficult for those in their 20s, 30s and even for some in their 40s to think realistically about retirement. But for those in their 50s, the deadline for saving is looming. It may shock you as to how close you really are to the end of your current career. Let MOSERS give you some tips for saving in your 50s for that last push before applying for retirement.
Increase Your Overall Savings Goals
The homestretch of your career is your last opportunity to put money away before you retire. Not that you should stop saving altogether once you've retired, but you have a larger pool of money from which to draw while you are still earning a salary. Some of your major financial responsibilities, such as child-rearing, may be nearing an end as well. You may have inherited money from family members. This may afford you extra money to invest for your later years. Given these variables, it may be reasonable to try to bump savings up to at least 20% of your earnings.
Evaluate Income vs. Expenses
Determine what your expenses at retirement will be and what sources you have for income. You may want to check out the financial calculators on our website. Login at http://www.mosers.org/. Then click on the following links as prompted:
- Active Members
- Calculators
- Financial Calculators
Start a New Career
Even though you will be eligible to retire soon, you may not feel like a “retiree.” Still feel too young to hang up your work clothes for good? You may decide to work past your retirement date. Or you may have an interest in starting a second career once you retire from the state. This may be your opportunity to engage yourself in something new, or take a chance at the private or corporate world. You may be able to turn a hobby or interest into a paying job. There are many benefits to continuing your working years, from financial to your mental and physical health. Working longer, or in a new position, can give your retirement savings a huge boost. By living off of a new or continued salary, you allow your savings to accrue additional interest by remaining untouched. Staying active for extended years has also proven to have a dramatically positive health impact on retirees.
Review Estate Plans
In addition to adding to your nest-egg in your 50s, it's also a good idea to review how those assets will be protected or distributed in the event of your death or incapacitation. You may want to consult with an attorney for advice. Review your MOSERS life insurance beneficiary designations. You can do so on our website under your personal information. Click on the Member Login section, enter your username and password, and you can view and update your beneficiary information on the secure portion of our site.
You may also consider completing a Designation of Agent form, which allows you to designate someone to act on your behalf should you become incapacitated. You can find MOSERS' Designation of Agent form online, or by contacting a benefit counselor at (800) 827-1063.
Contact the Social Security Administration
As you enter your late 50s, you may consider contacting the Social Security Administration for an estimate of your social security benefits based on your expected retirement date. Remember that these benefits will be reduced if you elect early retirement.
Attend a Pre-Retirement Planning Seminar
Once you are within 5 years of retirement, consider attending a MOSERS Pre-Retirement Planning seminar. It covers details of your retirement, including your MOSERS benefits, MCHCP, your deferred compensation account, and social security through the state of Missouri. For more information, login to our website, click on Active Members, then on Seminars. Find available seminar dates and locations near you.
It's Never Too Early, or Too Late, to Start Saving
As this series on saving for retirement comes to an end, remember that it's never too early or too late to save for retirement. Plan for your future by making preparations now, regardless of your age!
Source: MOSERS - PensionsPlus On-Line Newsletter - Spring 2006