A quarter of working people haven’t started saving for retirement yet, and that means that many people are going to need to catch up with their retirement contributions later in life.
If you’re over 50, you are allowed to make extra contributions to your retirement plans. The amount varies on the kind of retirement plan you have. For IRAs, both Roth and traditional, the 2016 catch-up contribution is $1,000. If your retirement plan is a “SIMPLE” IRA (SIMPLE stands for Savings Incentive Match Plan for Employees) you can catch-up $3,000 in 2016, up to $15,500 total.
This is a great way to make sure that you reach your retirement goals by the time you retire.