5. You’re lagging behind your savings goal
If you’re way off track with your retirement savings, you’re not ready. You’ll likely have to work longer so that you can make a last-ditch effort to retire somewhat comfortably. If you find yourself in this boat, catch-up contributions may also help. For 2016, you’re allowed to contribute a maximum of $18,000 to a 401(k). If you’re age 50 or older you can make an additional catch-up contribution of $6,000.
Once you’ve gotten closer to your goal, you’ll need to monitor your savings efforts — now is not the time to set it and forget it. One way to get a better idea of how close or far you are to your goal is to use a retirement savings calculator. This can help you see whether you’re right on schedule or if you should be saying a prayer. When calculating your retirement needs, don’t forget to take into account additional expenses such as health care.
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