5 Ways to Increase Your Retirement Fund During Your 40s and 50s
Once you hit your 40s and 50s, you’re earning the highest amount of your lifetime. If your retirement fund needs an extra boost, now is a perfect time. But, you’ll need a smart strategy otherwise you could end up making certain financial mistakes. It pays to know the best course of action you can take to grow your retirement fund, as you’re future likely depends on it. Here are 5 ways that you can grow your retirement fund during your 40s and 50s.
1. Saving and Investing: Capture Big Ticket Savings
When you reach the age of 50-years old you can start making catch-up contributions to your retirement accounts. You can add an extra $6,000 to a 401(k), and $1,000 to an IRA. By making these catch-up contributions you can increase your retirement plan savings which will set you up better for the future.
According to a recent study, after children leave home, retirement saving hardly increase. While it’s good to enjoy some of your hard-earned cash, it’s equally as important to save it. If you won’t remember to make additional payments to your 401(k) or IRA you can automate your payments through your bank so you don’t even need to think about it.
2. Work: Master an In-Demand Skill
On average, earnings for women peak at the age of 39 and 48 for men. To stay relevant and in the running for a pay rise, you’ll need to keep moving up the ladder. Make sure you are building your career instead of staying the same. You’ve already got years of experience under your belt, but that won’t stop business from continuing to change and develop.
To refresh your skills and learn new ones you can search for job listings in your field and see what kind of skills they require. For example, at Coursera, you can earn a certificate in Social Media Marketing for $79 from Northwestern University. Or a business analytics certificate from the University of Pennsylvania for $95. This is money well spent, as new skills and qualifications will keep your salary rising.
