Behind on Your Retirement Savings?

If life has not allowed you to build substantial retirement savings, what possible steps could you take in an effort to improve your retirement prospects?

 

You could play catch-up. If you are 50 or older, see if you can make the catch-up contributions the Internal Revenue Service allows for IRAs and other retirement accounts. For example, this year, a worker age 50 or older can direct up to $25,000 into a 401(k) account compared with $19,000 for someone younger.

 

You could contribute enough to “get the match.” If your employer matches your workplace retirement account contributions to some degree, you should make every effort to put in enough dollars to prompt that matching contribution, which amounts to additional money coming your way.

 

You could try to retire later. More years contributing to retirement accounts means additional inflows into those accounts as well as the possibility of additional growth and compounding for those invested assets. Working longer also implies that you claim Social Security later, and claiming later results in a larger monthly benefit. Working one or two more years also leaves you with a year or two less of retirement to fund.

 

Or, you might try to work a little during your retirement. It is true, your Social Security benefits could be docked as a result – but the tradeoff might be worthwhile.

 

If you are a Social Security recipient and younger than Social Security’s Full Retirement Age (FRA) in 2019, Social Security will withhold $1 in benefits for every $2 you earn over $17,640. This is called the Social Security earnings test. (If you were born during 1943-59, your FRA is between 66-67; if you were born in 1960 or later, it is 67.)

 

Social Security attempts to balance this penalty out, however, by boosting your benefit as you reach your FRA. For that matter, you can work and earn as much as you want at your FRA and beyond, with no reduction to your benefits.

 

If you retire at 62 and make $25,000 a year through a part-time job you hold during the first five years of your retirement, you are putting a dent in any Social Security income you receive until you reach your FRA, but that $25,000 yearly income can represent $25,000 you do not have to withdraw annually from your retirement savings. You could also invest some of that income.3

 

Growth investing may still be important when you retire. One of the biggest fears that retirees face is the erosion of purchasing power. To help manage this fear, your investment portfolio should reflect your risk tolerance, time horizon, and goals.

 

Speak with your adult children about your financial situation. If you desperately need to boost your retirement savings, the last thing you want to do is get corralled into providing your kids with a financial lifeline. You may have 15 years or less until retirement; they may have 40 or 45.

 

Take one crucial step before you make any of these choices. Schedule a consultation well before you retire to try and determine the level of income you may need to live comfortably. Any such consultation should include a Social Security analysis. When you retire, having adequate income becomes just as important as having adequate savings.

 

 

Office Locations

Louisville

2201 High Wickham Place
Louisville, KY 40245
502.753.0609

Cincinnati

100 E-Business Way
Suite 110
Cincinnati, OH 45241
513.842.1700

Bowling Green

1048 Ashley Street
Suite 301
Bowling Green, KY 42103
270.843.4115

Indianapolis

5750 Castle Creek Parkway North Drive
Suite 170
Indianapolis, IN 46250
877.634.9757

Grand Rapids

607 Cascade West Parkway
Grand Rapids, MI 49546
844.476.2744

Elizabethtown

2901 Ring Rd

Elizabethtown, KY 42701
270.990.9000

Lexington

176 Pasadena Drive
Suite 3B
Lexington, KY 40503
859.286.5085

Paducah

4730 Village Square Drive
Suite 100
Paducah, KY 42001
270.443.8711

Bardstown

713 McDowell Blvd
Bardstown, KY 40004
502.348.1433

Atlanta

3625 Cumberland Blvd., Suite 1485
Atlanta, GA 30339
678.681.9518

All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. Portions of the content on this website were prepared by Marketing Library Inc.

Please note: When you link to any of the websites provided herewith, you are leaving this site. We make no representations as to the completeness or accuracy of the information provided at these sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or use of third party technology, sites, information and programs made available through this site. By clicking on links above you will leave our website and assume total responsibility and risk for your use of the site you are linking to.

Respective services provided by ARGI Investment Services, LLC, a Registered Investment Adviser, ARGI CPAs and Advisors, PLLC, ARGI Business Services, LLC, and Advisor Insurance Solutions. All are affiliates of ARGI Financial Group. View our privacy policy here.

Argi Gateway Login

Forgot your password?

Call 866-568-9719