Tactics to Boost Your Retirement Savings – If You’re Over 50

Feb 05

How much do you need for retirement? Well, investment research firm Morningstar has a handy but somewhat scary stat: $1.18 million. Using average annual returns of 6% and pegging inflation at 2.5%, Morningstar calculates that’s the amount of savings needed to achieve $40,000 per year in annual income for 30 years.¹

If your retirement assets aren’t quite on track to meet that goal, there are two financial strategies that can help – and they both have additional tax benefits. We take a close look at the IRS’s catch-up plan for those 50+ and Health Savings Accounts.

If You’re Over 50 and Underinvested, the IRS Can Help

Thanks to what the IRS calls the “catch-up” contribution, employees 50 and over are allowed to contribute an additional $6,500 per year to a 401k plan. That additional money invested over time has a significant impact on the total value of a retirement plan invested... ...