From Yahoo Finance · · 2m
5 moves to make 5 years before retirement
Nearly half of older Americans have no retirement savings, but there's still time to prepare if you act now.
In brief
Nearly half of older Americans have no retirement savings, but there's still time to prepare if you act now. Maximize catch-up contributions to tax-advantaged accounts and create a detailed withdrawal strategy before you retire. Originally reported by Yahoo Finance.
The retirement readiness gap
43% of Americans aged 55 to 64 have zero retirement assets. Less than 10% have saved more than $1 million.
You still have time
At this age, you're likely at peak earnings, your kids are grown, and your mortgage may be nearly paid off.
Max out your 401k contributions
If you're 50 to 59, you can contribute $32,500 total to your 401(k) in 2026. Ages 60 to 63 can contribute $35,750.
The super catch-up provision
Thanks to the SECURE 2.0 Act, people aged 60 to 63 can add an extra $11,250 in catch-up contributions.
New Roth requirement for high earners
If you made over $150,000 in 2025, all catch-up contributions must now go into a Roth 401(k), not traditional.
Don't forget about IRAs
For 2026, people 50 and over can contribute $8,600 total to a Roth or traditional IRA.
Plan your withdrawal strategy now
Delaying Social Security increases monthly benefits. You can also sell taxable assets or convert 401(k) funds to Roth for tax advantages.
Prepare for market downturns
If the market drops 10% your first year and you withdraw 4%, your portfolio shrinks 14%, hurting long-term withdrawals.
Balance your account types
Spread savings across taxable, tax-deferred, and Roth accounts. Consider Roth conversions now for tax-free withdrawals later.
Plan for required withdrawals
Required minimum distributions from traditional 401(k)s kick in at 73, or 75 if you were born in or after 1960.
Test your retirement lifestyle
Take a short break to see how you spend leisure time. Build travel, side gigs, or hobbies into your annual budget.
The bottom line
Maximize catch-up contributions to tax-advantaged accounts and create a detailed withdrawal strategy before you retire.
