Being ready for a financially secure retirement takes planning that begins early and never really ends. Children grow up. Incomes rise or fall. The time left between work and retirement narrows. But let's focus on best practices during the ages of 55 to 69.
Ages 55-59
- Now is the time to save aggressively for retirement. You're probably in your peak earning years, so put away as much as possible as often as you can. And be sure to take advantage of so-called "catch-up" clauses that allow you to increase contributions to retirement plans.
- Look at your current spending and estimate whether your retirement needs will be met by income from Social Security, savings and withdrawals from your retirement plan.
- Shift to a more conservative investment strategy as retirement nears.
Ages 60-69
- Consult with a financial planner at least five years before you retire to make sure you are on a sound financial track.
- Consider long-term care insurance.
- Consider establishing a charitable gift annuity or a deferred charitable gift annuity and receive fixed payments for life.
- Make sure your will and estate planning documents reflect your current wishes.
The U.S. Social Security Administration's website can help you estimate the amount of monthly benefits you'll receive from Social Security.
- Go to www.socialsecurity.gov/estimator.
- Click on "Estimate Your Retirement Benefits" (button in the middle of the page).
- Be ready to provide your name, Social Security number, date and place of birth, and mother's maiden name.
- With a few more clicks, you get an estimate of your future benefits.
General Retirement Resources on the Web
Smart Money magazineThe U.S. Financial Literacy and Education Commission
CNNMoney.com
MSN.com
The information and content contained herein are intended for educational purposes only and are not intended to provide legal, tax or other professional advice or to be relied upon. We encourage you to consult with an attorney, tax advisor or accountant.