Good financial health is all about recognizing the most important issues during each stage of your life.
If you're in your 50s, now is the time to think seriously about the standard of living you want in retirement. Fortunately, you’ve still got some “runway” left to adjust your plan and meet your goals.
If you’re age 50 or older, you can make pre-tax catch-up contributions to your UC 403(b) and 457(b) Plans. As a result, in 2017 you can contribute up to $24,000 to each plan.
And that means you could be putting away $48,000 for your retirement every year.
Can you live on the resources you’ll have in retirement? Depending on your situation, you may need to replace 80% of your current annual pay when you retire. You could need even more than that if you factor in your out-of-pocket health care expenses throughout retirement. Check your Retirement Review to see what you’re on track to have at age 65.
You’ve still got time—perhaps 10 years or more—to save more or invest differently to help make up any shortfall you might see. Consider working with a Fidelity Retirement Planner to create a retirement income plan.
Protection and planning are paramount during this stage of your life. Check to be sure you’ve got enough life insurance and disability insurance—or you may even have too much insurance—and adjust accordingly.
You may also want to start thinking about long-term care insurance to pay for any nursing home care or in-home care you may need as you get older.
Finally, don’t forget to name beneficiaries and put together an estate plan.
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