Consider waiting to retire. Just because you hit the ‘magical’ age of 65 does not mean that you have to retire. If you can continue to work in your present job, then it might be worthwhile to consider doing that. Even three more years can make a significant difference in income. If you save 15% of your income to your retirement plan, you will raise your income from investments by over 20%.
Contribute to your retirement funds. Continue to add to your 401k or IRA accounts at 65 and over. Even if you have to reduce the amount that you are investing, it will still be better over the long run. Make sure that you are putting in enough money to receive your employer matching contribution. That is free money with which you will retire on and it is worth pursuing.
Hold off on SS Payments to you. Looking at the income offered by Social Security, you will realize a one-third increase in benefits if you wait until you are 66 instead of drawing out money at age 62.
Pay off what you can. Look at your financial picture and see if there are any debts that you can pay off with cash right now without raiding your 401k, IRA or other retirement funds. If so, then go ahead and do that to help your overall financial picture.
Avoid additional loans. Do not take a loan out against your 401k as this will leave you with the prospect of having to repay it completely when you leave employment loom large. The alternative is that the outstanding loan amount becomes fully taxable as a distribution from your account.
Be wary of reverse mortgages. While they are all the rage right now, they are dangerous and can leave you back at the beginning with your house except your home’s equity will be much less.
It is not going to be easy to get through, but you need to press on, and find a good financial consultant in whom you can place your trust to help you get out of debt as much as possible right before you retire. Carrying a heaving financial burden is not something that you want to have to shoulder when you are ready to enter the best years of your life.
