Retirement Planning for Boomers: 5 Moves You Need to Make Now

5:49 pm Retirement Planning

retirement sign e1367526898975 Retirement Planning for Boomers: 5 Moves You Need to Make NowFor many baby boomers, retirement planning has been a bit of a roller coaster ride in the last few years.  First the recession slammed your nest egg, and then the bull market hopefully helped you fatten it up again.

But if you are nearing retirement, don’t rely on the vagaries of the stock market and the economy to determine your retirement lifestyle.  To get back on track with your retirement planning, you need to make these five moves now:

Make catch-up contributions.  If you are over 50, you are allowed to add an extra $5,500 to your 401(k) in 2014, in addition to the $17,500 limit.  For IRAs, you can add another $1,000 to the $5,500 annual limit.

Educate yourself on Social Security benefits.  You can check what your anticipated Social Security benefits will be online now using the Social Security Administration’s Retirement Estimator.  If you are married, you can optimize your benefits by having the highest wage earner delay taking benefits until full retirement age (66+) or, even better, at age 70.

Plan for retirement income.  Once you retire, you go from building your savings to managing it so it lasts through the rest of your life.  You may want to consider financial instruments like a fixed annuity to pay you income for life.

Spend less, save more.  Cut back as much as possible now and funnel those savings into your retirement savings.  You may also need to work longer than planned if you are still catching up.  If you are still working, increase your retirement plan contributions by one percent every year.

Get help.  Consult with an estate planning attorney and a financial advisor to review your investments and savings strategies to be sure you can meet your retirement goals.

If you need retirement planning expertise, contact our Orange County law firm.

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