8) Not Catching Up
If you are late in the saving game, it is very hard to catch up and save enough to retire comfortably. Maybe you had to pay for your child’s college or had unexpected hardships or debt to pay. Whatever the issue, you were not able to put as much into your retirement fund as you would have liked, and are now facing the possibility of working through retirement. With both 401(k)’s and IRA’s, there are caps on how much you can put away for retirement per year. However, after the age of 50, that cap is raised significantly, where you can put away a maximum of $23,000 a year in a 401(k) and a total of $6,500 per year in an IRA. Even if you are late in your journey to having enough money to retire by 65, this raised cap gives you significantly more opportunity to retire on time.