On December 20, 2019, the SECURE Act (Setting Every Community Up for Retirement Enhancement) became law. The RMD requirements were significantly altered by the Secure Act. If you turned 701/2 in 2019, the previous rule applies, and your first RMD must be taken by April 1, 2020. If you turn 70 1/2 in 2020 or later, you must begin taking your RMD by April 1 of the year after your 72nd birthday.
The SECURE Act requires that all defined contribution plan participants and Individual Retirement Account (IRA) owners who die after December 31, 2019 (with a delayed implementation date for certain collectively bargained plans) get their entire account amount within ten years. A surviving spouse, a kid under the age of majority, a crippled or chronically ill individual, or a person not more than 10 years younger than the employee or IRA account owner qualify for an exception. The new 10-year regulation applies whether the person dies before, on, or after the requisite start date, which is now 72 years old.
The minimal amount you must withdraw from your account each year is known as your mandated minimum distribution. When you reach the age of 72 (70 1/2 if you reach that age before January 1, 2020), you must begin taking distributions from your IRA, SEP IRA, SIMPLE IRA, or retirement plan account. Withdrawals from a Roth IRA are not required until the owner passes away.
- Except for any portion that was previously taxed (your basis) or that can be received tax-free, your withdrawals will be included in your taxable income (such as qualified distributions from designated Roth accounts).
- Retirement Plans for Small Businesses, Publication 560 (SEP, SIMPLE and Qualified Plans)
- Distributions from Individual Retirement Arrangements, Publication 590-B (IRAs)
These commonly asked questions and answers are for informational purposes only and should not be used as legal advice.
- Is it possible for an account owner to take an RMD from one account rather than from each one separately?
- Is it possible to apply a payout in excess of the RMD for one year to the RMD for a subsequent year?
- Is an employer obligated to contribute to a retirement plan for an employee who has reached the age of 70 1/2 and is receiving required minimum distributions?
- What are the minimum payout requirements for contributions made before 1987 to a 403(b) plan?
What age do you have to start taking money out of your Roth IRA?
You can withdraw funds from your Roth IRA at any time. However, you must be cautious about how much money you remove, or you risk incurring a penalty. To take “qualified distributions” in retirement, you must be at least 591/2 years old and have contributed for at least five years.
What is the 5 year rule for Roth IRA?
The Roth IRA is a special form of investment account that allows future retirees to earn tax-free income after they reach retirement age.
There are rules that govern who can contribute, how much money can be sheltered, and when those tax-free payouts can begin, just like there are laws that govern any retirement account — and really, everything that has to do with the Internal Revenue Service (IRS). To simplify it, consider the following:
- The Roth IRA five-year rule states that you cannot withdraw earnings tax-free until you have contributed to a Roth IRA account for at least five years.
- Everyone who contributes to a Roth IRA, whether they’re 59 1/2 or 105 years old, is subject to this restriction.
What is the downside of a Roth IRA?
- Roth IRAs provide a number of advantages, such as tax-free growth, tax-free withdrawals in retirement, and no required minimum distributions, but they also have disadvantages.
- One significant disadvantage is that Roth IRA contributions are made after-tax dollars, so there is no tax deduction in the year of the contribution.
- Another disadvantage is that account earnings cannot be withdrawn until at least five years have passed since the initial contribution.
- If you’re in your late forties or fifties, this five-year rule may make Roths less appealing.
- Tax-free distributions from Roth IRAs may not be beneficial if you are in a lower income tax bracket when you retire.
What is the minimum distribution for an IRA in 2021?
- If you were born before July 1, 1949, you must wait until April 1 of the year after the calendar year in which you turn 701/2.
- If you were born after June 30, 1949, you will turn 72 on April 1 of the year after the calendar year in which you turn 72.
Date that you turn 701/2 (72 if you reach the age of 70 1/2 after December 31, 2019)
On the 6th calendar month after your 70th birthday, you achieve the age of 701/2.
For example, you are 70 years old and celebrated your 70th birthday on June 30, 2018. On December 30, 2018, you became 70 1/2 years old. By April 1, 2019, you must have taken your first RMD (for 2018). Following that, you’ll take RMDs on December 31st of each year, as explained below.
For example, you are 70 years old and celebrated your 70th birthday on July 1, 2019. You are not obligated to take a minimum distribution until you reach the age of 72 if you turn 701/2 after December 31, 2019. On July 1, 2021, you turned 72 years old. Your first RMD (for 2021) must be taken by April 1, 2022, with additional RMDs due on December 31st each year following.
Terms of the plan govern
Even if you haven’t retired, a plan may mandate you to start collecting distributions by April 1 of the year following you become 701/2 (72 if born after June 30, 1949).
% owners
Even if you haven’t retired, if you hold more than 5% of the company that sponsors the plan, you must start collecting payments by April 1 of the year following the calendar year in which you reach age 701/2 (age 72 if born after June 30, 1949), even if you haven’t.
Can I withdraw my Roth IRA after 5 years?
Basics of Roth IRA Withdrawal At any age, you can withdraw contributions from a Roth IRA without penalty. If your Roth IRA has been open for at least five tax years, you can withdraw both contributions and gains without penalty at age 591/2. 3
Can I cash out my Roth IRA?
You can withdraw your Roth IRA contributions tax-free and penalty-free at any time. However, earnings in a Roth IRA may be subject to taxes and penalties.
If you take a distribution from a Roth IRA before reaching the age of 591/2 and the account has been open for five years, the earnings may be subject to taxes and penalties. In the following circumstances, you may be able to escape penalties (but not taxes):
- You utilize the withdrawal to pay for a first-time home purchase (up to a $10,000 lifetime maximum).
- If you’re unemployed, you can utilize the withdrawal to pay for unreimbursed medical bills or health insurance.
If you’re under the age of 591/2 and your Roth IRA has been open for at least five years1, your profits will be tax-free if you meet one of the following criteria:
What is a backdoor Roth?
- Backdoor Roth IRAs are not a unique account type. They are Roth IRAs that hold assets that were originally donated to a standard IRA and then transferred or converted to a Roth IRA.
- A Backdoor Roth IRA is a legal approach to circumvent the income restrictions that preclude high-income individuals from owning Roths.
- A Backdoor Roth IRA is not a tax shelter—in fact, it may be subject to greater taxes at the outset—but the investor will benefit from the tax advantages of a Roth account in the future.
- If you’re considering opening a Backdoor Roth IRA, keep in mind that the United States Congress is considering legislation that will diminish the benefits after 2021.
Should I convert my IRA to a Roth?
Who wouldn’t want a Roth IRA? A Roth IRA, like a standard IRA, permits your investments to grow tax-free. However, unlike traditional IRA distributions, Roth IRA distributions are tax-free. Furthermore, if you don’t want to, you don’t have to take distributions from a Roth. In other words, a Roth IRA can grow indefinitely without being harmed by taxes or distributions throughout your lifetime.
Does that make sense? There is, however, a snag. When you convert a regular IRA to a Roth, the assets are taxed at your current rate. If you had a $1 million IRA, for example, the cost of converting it to a Roth IRA will be the taxes on $1 million in ordinary income. This might result in a significant tax burden, especially if you live in a high-tax state or have extra income this year.
However, the advantages can still be significant, especially when you consider the taxes that would otherwise be owing on your traditional IRA when you begin taking distributions in retirement.
Start by answering these two questions when considering whether or not to convert to a Roth:
Depending on how you respond to these questions, deciding whether or not to convert could be simple or a little more difficult.
There’s no point in converting if you’ll have to take money out of your IRA to pay the tax on the conversion, and you expect your tax rate on IRA distributions will be the same or lower in the future. Assume that the cost of converting your $1 million IRA is now $300,000, and you pay it out of your IRA. This equates to a 30% effective tax rate. So, unless you expect your future distributions to be taxed at a rate higher than 30%, there’s no reason to convert.
Assume, on the other hand, that you pay the tax with money from other accounts, such as your savings or investment accounts, and that you expect your tax rate on future distributions to be the same as or higher than it is now. In that situation, performing the conversion is usually a good idea. For example, if your current tax bill is $300,000 and would be the same or more in the future, converting has clear advantages. In your new Roth IRA, you’d still have $1 million growing tax-free. You’d also lock in the present tax rate, which is lower than the one you expect in the future.
In this case, your balance sheet would show a $300,000 loss. But that’s because you’re probably not factoring in the tax implications of converting your IRA. That tax bill is actually a liability on your financial sheet. It’s also growing at the same rate as your IRA—and even faster if your tax rates rise. By converting, you eliminate that liability before it may grow.
It’s possible that your position isn’t so straightforward. You may believe, like many others, that your tax rates would be lower when you begin taking retirement funds, but you still want to convert. If you saw the possibility for long-term savings, you might even find non-IRA assets to pay the tax. On the other hand, while you may not be certain that your tax rates will be reduced in the future, you are certainly able to pay your taxes using cash outside your IRA.
The answer in these and other cases when several factors are at play is to run the statistics.
Naturally, the lower your tax band, the less income tax you’ll have to pay when you convert your IRA. If your income fluctuates, consider converting to a Roth during a year or years when your income is lower. If you’re approaching retirement, you might see a dip in income between the end of your employment and the start of IRA Required Minimum Distributions and Social Security payments. Consider the possibility of higher tax rates in the future under the next government, as well as the fact that many individual tax cuts are set to expire in 2025.
The more time your IRA has to grow, the more value a conversion will provide. This refers to the period before you begin taking distributions. It also applies to the length of time you’ll take distributions once you’ve begun. It makes the most sense to convert when you’re young. However, converting when you’re older can be beneficial if you want to defer distributions or if other circumstances support your decision.
When the value of your traditional IRA drops, it may be a good idea to convert it to a Roth. You’ll pay a lower tax rate, and any future growth in your Roth IRA won’t be subject to income tax when it’s dispersed. Long-term tax savings can be compounded with a well-timed conversion.
If your beneficiaries inherited a regular IRA, they would be subject to income tax, but if they inherited a Roth, they would not be. With the exception of your spouse, minor children, special needs trusts, and chronically ill individuals, your beneficiaries must normally withdraw cash from your IRA within 10 years of your death under the SECURE Act. The Roth’s advantages are limited by this time frame. However, it relieves your successors of a huge tax burden.
If your IRA is set up to benefit a charity, converting it may be less tempting. This may also be true if you want to make qualifying charity withdrawals from your IRA throughout your lifetime. However, for individuals with a charitable bent, there are times when a Roth conversion makes sense. In 2021, you can deduct 100 percent of your income for financial gifts to a public charity (other than a donor-advised fund) or a private running foundation under special tax laws. As a result, you may be able to contribute a larger donation to charity this year to help offset the income tax impact of the conversion.
Paying the tax on a Roth conversion now can provide another benefit if your estate will be liable to estate taxes when you die. While paying income taxes depletes your bank account, they also reduce the size of your estate. Your estate will effectively be taxed at a reduced rate if it is substantial enough. While the federal estate tax exemption will be $11.7 million per individual (or $23.4 million for couples) in 2021, it will be slashed in half in 2026 and may be reduced much sooner and to a greater extent under the Trump administration.
Keep in mind that converting your assets to cash boosts your income for the current year, which can have unintended consequences. If you go beyond the applicable levels, your Medicare premiums may go up. Other sources of income, such as Social Security or capital gains, may be taxed differently. If the Roth conversion isn’t your only important tax event that year, make sure to account for the combined implications of all of them.
A Roth conversion isn’t a one-size-fits-all solution. You could convert simply a portion of your traditional IRA or spread the conversion out over several years. A Roth conversion cannot be reversed, as it could in past years. You may, however, take it one step at a time. Converting as much as possible each year without being pushed into a higher tax band is a wise plan.
Many people find converting a regular IRA to a Roth appealing, especially when they review their finances each year. Please contact us if you’d like to discuss the benefits and drawbacks of converting to see if it’s right for you. Experienced wealth advisors at Fiduciary Trust can help you sort through the data and make a decision that gets you closer to your financial goals.
Can you retire early with a Roth IRA?
You’re not even 50 years old, but your dream of early retirement is becoming a reality. At this time, just a few people can think about it. You, on the other hand, have worked hard, saved and invested wisely, and have avoided or overcome severe financial setbacks. If all of your money is in retirement accounts, though, you may have trouble getting the funds you need to retire without incurring penalties.
The IRS expects you to keep the money in your retirement account until you reach the age of 60 in exchange for the tax benefits that come with them. To deter you from taking it out early and abusing the tax benefits, the IRS charges a penalty of 10% of the taxable component of the distribution if you take it out before the age of 59 1/2.
However, there are exceptions to these laws, and if you want to retire early, you should be aware of them as well as other options for penalty-free cash. Decisions can be challenging depending on your situation, and many people in such instances seek the advice of a financial specialist to assist them comprehend their options.
Anyone planning to retire early should have some money in a “non-qualified” account, which does not receive the preferential tax treatment that certain retirement accounts do. According to financial planner Kevin Feldman of Feldman Capital, an asset management advisory firm in San Francisco, they may be able to withdraw these funds at the lower qualified dividend and capital gains tax rates before taking a retirement plan distribution, which will be taxed as ordinary income.
The majority of income from brokerage account investments like mutual funds and exchange-traded funds is treated as qualified dividends, which are taxed at a lower rate for most people than regular income, according to Feldman. Long-term capital gains taxes on appreciated investments that you sell are generally the same.
In fact, if you earn up to $40,400 for single filers and up to $80,800 for married couples filing jointly in 2021, you will pay no federal tax on your qualifying dividends and long-term capital gains.
Cash withdrawals from savings accounts, as well as the sale of your property, are alternative options. (Related: Is it better to rent or buy a home in retirement?)
The 10% tax on early 401(k) payouts does not apply if you leave your employment during or after the year in which you turn 55. Employees of public schools and charities who participate in a 403(b) plan, which is identical to a 401(k), are subject to the same rules.
A 457(b) plan is also available to state and local government employees. Workers with these plans can take early withdrawals without penalty at any age after leaving the service, but the withdrawals will be subject to normal income tax because the contributions were made with pretax monies.
Certain public safety employees with a governmental defined benefit plan who work for a state or a political subdivision of a state may take penalty-free distributions after leaving service at or after the age of 50.
While some employees who retire at 55 may prefer to roll their 401(k) balance into an IRA in order to have more investment options and control, doing so right immediately if you retire at 55 may not be in your best interests because you can avoid tax penalties by collecting distributions from your 401(k) (k). To put it another way, if you roll 401(k) funds into an IRA, you will lose the option to take cash penalty-free when you reach the age of 55.
You could choose to roll the amount into your IRA after you reach age 59 1/2 and no longer have to worry about early withdrawal penalties, according to financial counselor Byron Ellis of United Capital Financial Advisers in The Woodlands, Texas. Another alternative is to leave enough money in your 401(k) to support your costs until you reach age 59 1/2, then roll the balance over when you turn 60.
Any qualifying distribution of funds from a Roth IRA is not a taxable distribution, so you don’t have to include it in your gross income when filing your tax return. A qualifying distribution is one that is made after the five-year period that begins with the taxable year in which you initially made a Roth IRA contribution and meets one of the following criteria:
- On or after the taxpayer’s death, made to a beneficiary or the taxpayer’s estate.
- It’s a “qualified first-time homebuyer distribution” with a $10,000 lifetime cap.
Non-qualified distributions of Roth earnings, on the other hand, are treated as income, and if taken before the age of 59 1/2, you must pay a 10% penalty on the taxable portion of the distribution. If you meet a different exception, the penalty may not apply.
Any funds in your Roth IRA that come via a traditional IRA or 401(k) rollover may be subject to additional tax requirements. If the funds are included in a non-qualified distribution, the 10% penalty will apply, regardless of whether the distribution is otherwise taxable. Five years must have gone since the conversion or rollover to avoid this. Of course, if after-tax IRA contributions were rolled over, the monies would not have been taxable at the time of the rollover (since they were already after-tax) and so would not be subject to this regulation.
Any payments from a Roth account that includes both regular contributions and conversion amounts are classified as follows…
The money you remove is applied first to your regular contributions, which is a good thing because there is no penalty. Then comes any conversion or rollover contributions. Finally, distributions in excess of any sort of contribution are deemed distributions of earnings, and are subject to both the 10% penalty and tax. As previously stated, conversions or rollovers may be subject to the penalty. The IRS adds all Roth IRAs together for calculating taxes and penalties. The complicated rules for Roth IRA distributions are explained in IRS publication 590-B.
While it’s convenient to be able to withdraw money from a Roth without penalty, you’ll miss out on another important benefit of the Roth if you do so. Roth balances grow tax-free and do not demand distributions during your lifetime at any age, allowing you to grow your money eternally, unlike a 401(k) or regular IRA, which both require you to begin collecting minimum distributions each year once you reach the age of 72. If you don’t drain the account yourself, you can even leave it to your heirs (although required minimum distributions apply to Roth beneficiaries).
The IRS’s section 72(t)(2) rule, which allows retirement account holders to avoid paying the 10% penalty by taking a series of substantially equal periodic payments (SEPPs) for five years or until they reach age 59 1/2, whichever comes first, is one option for taking early distributions from a traditional IRA or non-qualified Roth IRA.
After you leave your job, you can take SEPPs from a qualified plan such a 401(k) or 403(b).
According to Edward Dressel, president of Trust Builders, a company in Dallas, Oregon that provides retirement planning tools for financial advisors, the IRS gives three techniques for calculating SEPPs.
The life expectancy method, for example, is solely based on the account owner’s age. The annuitization and amortization approaches, on the other hand, take into account both age (the first method’s life expectancy component) and an acceptable interest rate. The rate is calculated using mid-term interest rates, which have been hovering around 2% for the past few years.
The amortization and annuitization methods require the account holder to take the same distribution amount each year, whereas the RMD method requires the account holder to recalculate the distribution amount each year based on the account balance as of December 31 of the previous year and the new life expectancy based on the account holder’s current age. Every year, the same life expectancy table must be utilized.
Dressel gave an illustration of how SEPPs might function for a 50-year-old with a $1 million account balance using each of the three methods of calculation:
To figure out: Using an IRS-approved life expectancy formula, divide the $1 million account balance by the account holder’s life expectancy. A 50-year-life old’s expectancy is 34.2 years, according to one of the recognized tables (single life expectancy). The result of multiplying $1 million by 34.2 is $29,239.77. Following that, there would be a range of amounts.
To calculate: The annuitization approach uses an IRS-provided table to generate a factor based on the current interest rate and the age of the client. This calculation, according to Dressel, is better left to a computer. The account balance is divided by the annuity rate that has been determined.
To figure out: Your account amount, an interest rate that is not more than 120 percent of the federal mid-term rate, and your life expectancy factor from one of the IRS-approved tables are the inputs you’ll need. To figure out how much you’ll need to withdraw each year, use an online 72(t) calculator to create an amortization schedule. As of January 2021, the maximum interest rate that can be applied is 0.62 percent, which is 120 percent of the federal mid-term rate. According to the single life table, the account balance is $1 million, and the life expectancy is 34.2. Annually, at January 2021 rates, the estimate generates 32,539 dollars.
Using an online 72(t) calculator to project the revenue that could be earned from a certain account balance is the simplest approach to examine your possibilities.
You pay ordinary income tax on the taxable component of SEPPs from a 401(k), 403(b), or traditional IRA, just as you would if you were taking a required minimum distribution or any other sort of distribution from these accounts.
“A penalty of 10% is levied retroactively to all distributions if payments do not occur for the required amount of time,” Dressel explained.
To put it another way, if you start withdrawing $1,000 a month in SEPPs at age 50 and stop at age 54, you’ll owe a 10% penalty plus interest on the $48,000 you’ve withdrawn over the years.
You will be charged a retroactive penalty if the SEPP is changed. You’d face penalties if you started working part-time and wanted to contribute more to your IRA. If you did a rollover, for example. If you remove a large sum from your account in addition to the anticipated annual installments because you are short on funds, you will be penalized. You’ll have to pay penalties on both the SEPPs you’ve previously withdrawn and the lump sum.
SEPPs, according to Dressel, may be burdensome for someone who only requires a one-time distribution or who need more flexibility in the amount provided each year.
And, based on the usual retirement balance and typical income demand, SEPPs will not generate enough income to live off of, according to Dressel. For example, a 59-year-old retiree who wants to earn $75,000 a year from SEPPs would need an account balance of more than $1.5 million. Section 72(t)(2) payouts are more effective when they are used in conjunction with other sources of income, such as part-time employment.
According to financial adviser Richard E. Reyes of Wealth & Business Planning Group in Maitland, Florida, if your taxable income after deductions and exemptions is zero, the only tax you’ll pay on an early withdrawal is the 10% penalty.
Because actual events in real life are likely to be significantly more complex, Reyes presented a simplified and idealized scenario to explain for discussion purposes: In 2021, the standard deduction for a single 55-year-old who took a $10,000 conventional IRA payout would be $12,550. (assuming no other income sources). As a result, the distribution’s taxable income is zero, and the penalty is $1,000. A single 55-year-old who took a $50,000 regular IRA payout and had $50,000 in itemized deductions would be in the same boat. The distribution penalty is $5,000. (again, assuming no other income sources).
If you retire before the age of 59 1/2 and have been saving, you will most likely have numerous alternatives for supporting your retirement without having to pay the IRS’s dreaded 10% penalty on early retirement plan distributions. However, because the implications of making a mistake can be costly, you may want to get advice from a financial professional while developing an early retirement income strategy.
How much does the average 62 year old have saved for retirement?
Making the decision to retire is a significant life event. It’s the start of a new financial chapter for you, one in which you’ll move from producing income to drawing from your savings.
If you’re approaching 60, you’re probably thinking about retiring. Have you put aside enough money? How much money does the average 60-year-old have set aside for retirement? According to Federal Reserve data, the median household income for 55- to 64-year-olds is just over $408,000.
This benchmark, however, is only an average. The amount of money you’ll need to retire comfortably is determined by your costs, lifestyle, and personal financial objectives. Let’s look at how having a big-picture view to your retirement might help you set a realistic savings goal.
WHAT WILL YOUR LIFE LOOK LIKE AT 60?
As you approach your 60s, you’ll want to start thinking about how you’ll spend your retirement years. Let’s imagine you plan to work till you’re 65 years old. In this case, you’ll be eligible for Medicare, which might help you save a lot of money on health care in retirement. However, if you plan to retire before turning 65, you’ll be on the hook until you qualify for Medicare, which will raise your costs.
There are a few other aspects to consider: If you want to downsize to a smaller home or relocate to a town with a cheaper cost of living, for example, you won’t need as much money as if you plan to stay put. Alternatively, if you plan to retire early, you’ll need a greater nest account to fund your remaining years.
Finally, you’ll need to figure out how much money you’ll need on a monthly basis to support your lifestyle. In addition, you’ll need to determine how long your savings account will survive.
CONSIDER YOUR RETIREMENT ACCOUNTS AND CASH SAVINGS
Retirement income can come from a variety of sources, but retirement accounts like 401(k)s and IRAs are likely to come to mind first. These accounts enable you to stash money aside exclusively for retirement. Contributions to standard 401(k)s and IRAs are frequently made before taxes. You can begin pulling money out of these accounts with no penalty after you reach the age of 59 1/2 (though you will still have to pay tax on any distributions). Roth 401(k)s and Roth IRAs, on the other hand, are funded with after-tax monies, so you’ll be able to draw tax-free payouts in most cases. To help diversify your portfolio, you may wish to have some money outside of your dedicated retirement accounts, such as nonqualified investments or brokerage accounts.
Retirement accounts are great for building wealth over time, but they’re also vulnerable to market fluctuations. As a result, it’s a smart idea to save a portion of your money in more secure accounts. You could fund a cash reserve using accumulated value in life insurance, cash or cash equivalents, money market accounts, or CDs as you work toward building a cash reserve (two years’ worth is often recommended).
FACTOR IN OTHER FORMS OF RETIREMENT INCOME
Other types of retirement income, in addition to liquid savings, can protect your nest egg by shielding you from market ups and downs. Pensions are less widespread today than they were in previous generations, but they do provide a steady income. An income annuity can be an excellent alternative if you’re worried about outliving your savings because you’ll get a monthly payment for the rest of your life. Another approach to supplement your income is to get a whole life insurance policy, which has a cumulative value that is guaranteed to rise and is not market-linked.
You should also consider when you intend to begin receiving Social Security benefits. While you can start collecting at the age of 62, delaying can result in a greater monthly benefit. However, doing so will necessitate having enough money to support oneself till then. A financial expert can assist you in determining when it is best to take Social Security.
WAYS TO CATCH UP ON YOUR RETIREMENT SAVINGS
At 60, you may discover that you’ve fallen short of your retirement savings goal. The good news is that there are options for getting caught up. If you’re 50 or older, you can make up to $6,500 in additional 401(k) contributions and $1,000 in additional IRA contributions in 2021. You could also choose to work a little longer until you reach your objective goal, depending on your financial condition.
What is the average retirement savings of a 60-year-old? Perhaps a better question is: how much do you need to save to fund your particular retirement vision? An competent financial advisor can assist you in developing both short- and long-term strategies for accomplishing your objective.