13 Retirement Mistakes to Avoid
Baby boomers are fleeing the workforce in droves, with nearly a million older Americans retiring in the last quarter of 2016 alone. As the end of their earning years draws closer, seniors and soon-to-be retirees should take care to avoid the most dangerous retirement pitfalls. A financially stable life in retirement depends on knowing what not to do with your money and assets as your career winds down.
The Internal Revenue Service allows larger contributions to tax-privileged retirement accounts for taxpayers 50 and older. When taxpayers hit the big 5-0, they can try to make up for lost investing time by stuffing as much into their retirement accounts as possible. In 2017, the maximum allowable contribution to an Individual Retirement Arrangement, or IRA, jumps to $6,500 a year from $5,500 for older Americans.
Americans are eligible to apply for Social Security benefits when they turn 62, but they get 25 percent more if they wait until 66. If they wait until they turn 70 to apply, they get 32 percent more. For Americans who have the means, it pays to wait.