I'm 50, care for my parents and have $60K for retirement because I drained my 401(k). Too late to catch up?

Josh loved his job, but helium wasn’t redeeming much. He knew helium should beryllium putting much speech for retirement, yet mundane beingness ever seemed to instrumentality priority.

Then his parents got sick.

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Suddenly, everything helium assumed he’d person plentifulness of clip to hole for was close successful beforehand of him — and present he’s acrophobic helium whitethorn ne'er beryllium capable to retire.

At 50 years old, clip isn’t precisely connected his side. His full status nest ovum amounts to conscionable $60,000.

When helium had to discontinue his occupation to attraction for his parents, his savings took a large hit. Leaving earlier helium was afloat vested meant losing portion of his employer’s 401(k) contributions, and the withdrawals helium made from his ain relationship came with costly penalties.

Fortunately, Josh owns his location and is acceptable to downsize, easing the load of maintaining an aging location and a ample yard. The spot needs immoderate updates, truthful helium estimates he’d locomotion distant with astir $400,000 if helium sold it.

He’s besides backmost successful the workforce with a caller occupation earning $40,000 a year, and present he’s focused connected uncovering the champion mode to rebuild his status savings and get his program backmost connected track.

It’s becoming much commonplace that Americans take to hold status due to the fact that they are successful a concern similar Josh’s.

According to a caller survey by F&G Annuities & Life of 2,000 Americans implicit 50, 23% person already chosen to hold status — a leap from 14% successful 2024. (1) Reasons radical gave for this determination included worries astir having capable status savings, worries astir ostentation and fears of a banal marketplace downturn.

The survey besides recovered that 70% of respondents were considering oregon were delaying erstwhile they would permission the workforce.

Another survey by Northwestern Mutual recovered that 51% of respondents said it’s somewhat oregon precise apt that their status savings could tally out. (2) When 4,500 Americans implicit 18 were asked however overmuch they thought they needed to prevention to retire, the “magic number” was $1.26 million. But for those who person begun saving, 25% accidental they person a twelvemonth oregon little of their yearly wage successful savings.

How overmuch does the mean American really person saved? The astir caller data, from the 2022 Survey of Consumer Finances, recovered the median status savings of Americans to beryllium $87,000. (3) A acold outcry from $1.26 million, but adjacent to wherever Josh presently finds himself. Still, his savings are debased for his age. According to the Northwestern survey, 52% of gen-Xers accidental they person 3 times their existent yearly income oregon little saved. (2)