Financial goals for your 50s and 60s

You’ve been managing your finances for decades. Maybe you’ve done well. Maybe you’ve made some mistakes. By now, you’ve learned a lot. And retirement is looking more realistic. It’s a good time to look closely at your retirement strategy, and make any adjustments necessary to your plans. Here are some financial goals to think about in your 50s and 60s.

Key takeaways: Financial goals for your 50s and 60s

• Costs generally go up over time, not down. Review your retirement strategy to be sure you will have enough income after you stop working.
• Some 401(k) and IRA plans allow you to make catch-up contributions after age 50 to increase your retirement savings.
• You are eligible for Medicare at age 65, but it may not be enough to cover all your healthcare needs.

Catch up on retirement contributions

Look over your retirement assets to see if you’re on track to meet your goals. Remember that costs generally go up over time, not down. The amount you had planned to save for retirement may no longer be enough to last the rest of your life.

Fortunately, some IRA and 401(k) accounts let you make catch-up contributions after age 50. This allows you to defer or reduce taxes while generating more savings for retirement. The more money you can put away now, the easier your life will be later.

Develop your retirement income strategy

Making your assets last as long as possible calls for careful retirement income planning. Do you have a traditional or Roth IRA? A 401(k) matching plan? An investment portfolio? Any of these may need to be adjusted to protect your wealth as you get closer to leaving the workforce.

Consult with a financial advisor to develop a retirement plan that fits your needs and goals. Ideally, you want to minimize taxes while getting the most out of your savings when you retire.

Plan for healthcare

You qualify for Medicare at age 65, but it may not meet all your healthcare needs. Consider your health history and look into what Medicare will cover. You may want to enroll in a supplemental health plan or switch to HMO coverage. A Medicare broker who offers free consultations could help you learn about your options.

Write a will

If you haven’t yet written a will, be sure you do so now. People often delay dealing with this because they don’t want to think about death. But it’s important to put your wishes in writing so that your family doesn’t have to guess at what you would want.

Have a frank discussion with your partner and children to identify any special needs or wishes they may have, then meet with an attorney to help you draw up a will that is legal in your state.

Consider downsizing

When the children move out, you may find that your house feels empty. Should you downsize to a smaller living space? You could end up paying less on your mortgage or rent, utilities, maintenance, and insurance.

If your mortgage is paid off, however, or if you’re happy with your current situation, it may be a better financial choice to stay where you are. Having your own home can give you a sense of stability and security that becomes more important as you age, and you don’t have to deal with the cost and hassle of relocating. Only you can decide what will work best for your circumstances.

Oportun: Affordable lending options designed with you in mind

By knowing what to expect at each stage of life, you can set your goals and adjust your strategy as needed to meet them. Financial stability makes for less stress and more enjoyment as you go through life.

Wherever you are on your journey, Oportun is here to help. Visit our homepage to learn about:

• Personal loans
• Secured personal loans
• Set & Save™

Sources:
Investopedia. Catch-up contribution: What it is, how it works, rules, and limits
National Council on Aging. What is a Medicare broker and why should you consider talking to one?
Experian. Financial pros and cons of downsizing your home
FINRA. 5 things to do to boost retirement savings
Investopedia. Top retirement savings tips for 55-to-64-year-olds