Money Management

Saving by the decade – Catch-up if needed

DATE | 08/07/23
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This article is the fourth in a series that will cover savings strategies you can follow in each decade of your life.

Building that nest egg for your daily needs can be a challenge. And for many, the idea of saving for retirement is often a ‘tomorrow’ idea—until it becomes ‘soon.’ But the longer you wait to save, the more it can cost you. We share some general guidelines to make saving a bit easier by the decade.

Your 50s: Catch-up if needed

For many people, this tends to be a good earnings decade, so take advantage of it. Now is the time to figure out what you may be missing and catch up if you’re behind. Both the 403(b) and the IRA allow an age 50 and over catch-up option (learn about contribution limits). Some districts may also offer a 15 years of service catch-up provision in their 403(b) plan. Contact your district office to learn more.

If you can accomplish it, your debt should be paid off except for a mortgage and potentially your cars. Keep up your emergency savings to equal three to six months of salary.

It may be hard to hear, but you also qualify for some senior discounts in this decade—why not embrace them?

If you don’t have a life insurance policy yet, now is a good time. You may also want to consider long-term care insurance. Most costs for extended care needed during recuperation from strokes, accidents, illnesses, and operations are not covered by health insurance or Medicare. And it may be less expensive to start a policy while you are relatively young. Associates of Clifton Park is our long-term care partner and can tailor a policy to cover many circumstances.

Now is also a good time to start learning about your benefits with the Wisconsin Retirement System (WRS), Social Security, and Medicare. Download our free 20 WRS FAQs eBook to get started.

As you get closer to retirement, you may want to start considering where you might live and what you will do for work, personal insurance, and health insurance. Our financial planning advice options can help you evaluate your current investment portfolio or explore whether you’re on track for retirement. And if you are close to retirement, our financial planners can help you define your retirement goals, evaluate your financial position, and create a plan to turn your retirement savings into income during retirement.

<<Read Part 3 of our series on saving in your 40s.

>>Read Part 5 of our series on saving in your 60s.

Sources: Citizens First Bank, Forbes, Vanguard.
Your actual situation may be different depending on future rates. No guarantees are expressed or implied. If you choose to invest in the 403(b) or IRA programs, fees will apply. Consider all expenses before investing. Mutual fund management and redemption fees may apply.