There is a special provision for those over 50 called the “Catch-Up” contribution. This allows those over the age of 50 to save an additional $6,000 in their 401(k) plan annually. You may think to yourself – will this $6,000 per year in savings really make a difference during my retirement? Take a look.
By saving the additional “catch-up” contribution in a 401(k) someone who is age 50 could have almost $182,000 more saved up for retirement at age 65 than someone who doesn’t make the additional contribution. Continuing the “catch-up” contributions until age 70, the same individual would have over $300,000 more than if he did not make the additional “catch-up” contributions.
It’s never too late to start saving for retirement. If you would like help saving or investing for retirement please contact a member of our wealth management team.