Q:

What is the best way to plan for retirement at age 66?

A:

Quick Answer

To prepare for retirement at age 66, it is important to consider spending money, current debts and retirement accounts, according to Jane Bennett Clark for Kiplinger. Clark recommends getting catch-up contributions, enrolling in long-term care insurance and creating a new retirement budget.

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Full Answer

People born between 1943 and 1954 who decide to retire at 66 get the full amount of Social Security benefits, explains Emily Brandon for U.S. News & World Report. The amount increases for people born in 1955 and later years. Reaching full retirement age also lets older adults continue working to earn a living, while also getting Social Security benefits at the same time. This helps them add double the amount to their retirement savings.

Consolidating older 401(k) plans is also recommended by Clark. This includes money in 401(k) plans from older jobs. While it is better to keep the money in the account rather than withdraw it early, it is a good idea to withdraw the money and put it in an IRA when nearing retirement age. People who plan to retire at 66 should start putting all 401(k) savings into a single IRA. This lets them continue to earn money from the 401(k) while it sits in a savings account for future use.

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