Welcome back to Money Burst. I'm Chris with your quick retirement readiness guide that I've been breaking down for you decade by decade. Today we're talking about your 50s, which really is a crucial time for solidifying your retirement plans. So, let's just jump right into it.
As we discussed in the last video, turning 50 opens up the door for something called catch-up contributions, and now that you're actually in your 50s, it's time to take advantage of this opportunity. The IRS allows you to contribute an extra $6,500 into your 401k and an extra $1,000 into your IRA on top of your standard limits. So that's a total of $26,000 and $7,000, respectively, in 2023. You can make up for any lost time by sending any salary increases, bonuses, or just extra cash that comes your way into your retirement account.
Your 50s are when you really want to add some clarity into your retirement plans. This is the perfect decade to sit down with a financial planner and fine-tune your retirement strategy. With their expertise, you can set a tentative retirement date, understand what that means for your savings, and align your investment choices with your retirement goals. It's also about shaping the retirement you envision, ensuring that you're actually on the right track.
And, lastly, if you haven't already done so, it's time to start learning more about your Social Security benefits. You can visit the official Social Security website at ssa.gov and create an account to view your entire social security contribution history, and also get a handle on how much you can expect to receive. You can even use one of their calculators to estimate your monthly Social Security benefit.
Your 50s are a crucial period of time for making some concrete plans and actually taking proactive steps towards achieving your retirement goals. Remember that if you need guidance, a certified financial planner can be your best partner throughout this entire planning process.