Will you hit your magic number?
It’s the financial question that worries just about everyone—whether you’ll have enough money to support yourself comfortably after you stop working. By the time you’re a few years away from retirement, this concern grows into a primary stressor. And numbers of all kinds, from surveys of savers’ attitudes to reviews of their actual account balances, suggest that the majority of Americans are right to be worried.
The good news is that people can make up for a lack of savings, and put their minds at ease, in those last years before retirement—as long as they don’t stumble into some of the biggest pitfalls that lie along the home stretch. Here are four important moves you can make to avoid common mistakes.
Take advantage of catch-up contributions
Starting at age 50, you can use catch-up contributions in many tax-deferred retirement plans. Under current law, this allows you to set aside an additional $6,000 in a 401k, on top of the $18,500 maximum for people under 50. (And, at least for now, it looks like any looming tax reform in Congress won’t change the tax status of these savings accounts.)