Turning fifty is no picnic, but if you’re surrounded by people who make you laugh, the process will be easier.
Making a career change at 50
Often, older individuals have clearer ideas about their future careers and what they want to do. Changing careers is a great way to extend one’s life or even find a new passion. While it can be stressful to leave a job you love, changing industries can offer new challenges and rewards that are more satisfying than a salary.
Changing careers can be a daunting task, especially at an advanced age. However, you can benefit from your established professional network, valuable industry experience, and sense of purpose and self-confidence. A well-designed plan can help you overcome these obstacles.
Retire early
You can retire early when you’re 50 if you follow a few simple rules. The first step is to start saving religiously and invest wisely. Ideally, you should have enough money saved to live comfortably in retirement. A general rule is that you’ll need about 75 percent of your pre-retirement income to live comfortably in retirement. To calculate how much you need, multiply that number by the number of years you expect to live in retirement. You should also take into account the life expectancy of your family.
You can also try to find a part-time job or other less demanding work after you retire. Retiring early can help you make the most of your remaining energy for other rewarding pursuits. Some people want to start a second career, start a business, or fulfill a dream they’ve had since they were children. Depending on your personal preferences and financial situation, you may be able to use a portion of your savings to pursue this goal.
Catch-up provisions for 401(k)
There are a few key rules for making catch-up contributions to a 401(k) plan after you turn 50. First of all, you must be at least 50 years old by December 31 of the current year to participate. However, if your 50th birthday falls in the middle of the year, you will qualify for catch-up contributions as of March 31. Despite these requirements, the majority of eligible employees don’t take advantage of catch-up contributions. As of 2020, catch-up contributions were permitted for 97% of defined-contribution plans, but only 15% of plan participants took advantage of them.
Catch-up contributions can help you increase your retirement savings. If you are 50 and still working, you can make an additional $1,000 to your retirement account. However, you should calculate how many paychecks you have left before you reach the catch-up contribution limit and how much you’ll need to make per paycheck. You don’t want to be shortchanged because you didn’t contribute enough per paycheck.
Flexibility
According to a survey, flexible schedules are among the top priorities for many people. In fact, 69% of respondents said that a flexible schedule would benefit them in a new role. But this perk does not come without downsides. More than half of respondents said that it would be difficult to keep track of their hours, and 38% said it was difficult to coordinate team communications.
Those in their 50s are likely to have many commitments, including family responsibilities and work deadlines. It can be difficult to juggle these obligations with volunteer work. But a flexible schedule can make it easier to work on a cause that inspires you and keeps your outlook fresh.
