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In Your 60s? Here’s Your Checklist

You are likely to be in your 60s when you enter retirement. It is very important to review how your current retirement finances align with your long-term goals before making any decisions. Here are some tips to consider.

1. Review and update your retirement plan

Make sure you are on track and determine how much you need for the lifestyle you want in retirement.
  • Check to see if you have enough to retire when you want to, or whether you should be saving more with our Retirement Quick View Calculator
  • Make sure you have an appropriate investment and asset allocation strategy to reach your goals
  • Be sure you have an established and updated income plan that details how you’ll pay yourself in retirement and that protects you from outliving your savings

2. Develop your income plan

  • The goal of a retirement income plan is to create a sustainable, predictable stream of income.
    • Create or review a withdrawal strategy designed to provide the income you need in retirement
      • Even if you are a few years from retirement, this can be a critical piece to help you determine if you are ready to retire. Following an effective income plan for retirement is as important as saving for it.
      • Ask yourself questions such as: How will you pay for essential expenses like food or housing? How much will you need for discretionary spending like travel or entertainment? How will you address inflation?
  • Understand the role guaranteed income with annuities can play in your retirement income plan
  • Simplify your finances to better track your assets and manage your spending by consolidating multiple savings accounts into one retirement plan account

3. Keep saving

  • “Catch up” by contributing more to your retirement savings. You are now allowed extra “catch-up” contributions to your retirement plan account and IRAs.
    • For 401(k)s (not including SIMPLE plans), the catch-up amount for 2014 is $5,500 above the contribution limits and adjusted for inflation in subsequent years. This brings the 2014 maximum 401(k) contribution limit to $23,000 if you’re over 501. If made each year until retirement, these additional deposits can help your retirement savings grow significantly.
    • For Traditional and Roth IRAs, the catch-up amount is $1,000 above the standard limits, which are now annually adjusted for inflation.
  • Don’t make the mistake of assuming that your current contributions are enough.
    • Depending on your retirement goals and current savings, you might need to be saving more than 20% of your income while in your 60s.
    • Retirement plan and IRA contribution limits could mean you need to save extra in taxable accounts like a brokerage account.
  • Consider adding bonuses, tax refunds, or other lump-sum payments to your retirement savings.
  • Maintain your emergency fund so it covers three to six months worth of your living expenses.

4. Protect yourself from the unexpected

  • Consider additional life insurance protection to provide for your loved ones.
  • Learn about long-term care insurance.
  • Protect what might be your most important retirement asset — your home. Make sure your home is sufficiently covered with homeowners insurance.
  • Estimate and add the cost of insurance to what you’ll spend in retirement.
 
1 The $17,000 contribution limit may be subject to plan imposed contribution limits and catch-up contributions may not be allowed under the terms of your plan.
Recordkeeping, trustee and/or custody services are provided by Wells Fargo Institutional Retirement and Trust, a business unit of Wells Fargo Bank, N.A. This information is for educational purposes only and does not constitute investment, financial, tax or legal advice. Please contact your investment, financial, tax or legal advisor regarding your specific needs and situation.