Did you forget to plan for retirement? Here's how to play catch-up

Here's what seems to happen to many fiftysomethings:

One day, they're thick in the middle of child-rearing. Their careers are on the back burner; they're going on college tours and soccer team trips. They've got all the time in the world.

The very next day the kid is gone; Saturdays and Sundays present wide-open opportunities to do whatever; and they find themselves talking about exit strategies, downsizing, those places they always wanted to live and -- the word that seems so strange when referring to oneself -- retirement.

It's closer than they'd thought, and they forgot to prepare or save enough. Not to worry. Even folks who completely ignored retirement can catch up pretty fast if they know how. Some strategies:

You've probably heard the scare stories about people with inadequate savings, forced to work as Wal-Mart greeters and eat pet food, but most people muddle through retirement on less money than they needed during those peak soccer/big-house/high-tax years. You can, too.

If you're not contributing as much as possible to your 401(k) plan at work, start now. Also put the maximum in a Roth IRA if you're eligible. How much is that? You can still contribute $4,000 for 2006 and $4,000 for 2007. Starting in the year you turn 50, you can contribute an additional $1,000 a year.

Think it's not enough? Invest $5,000 a year starting at age 50, earn an average of 8 percent a year on it, and you'll have more than $100,000 extra to play with by the time you're 62.

This can be anything from reselling collectibles to building footstools. Running it like a business gives you many benefits, including some income; the experience of doing something other than your job; the ability to write off many of your supplies, tools and materials on your taxes (as well as some travel and other benefits if you follow all the rules); and a whole menu of other retirement plans, including SEP IRAs, Keogh Accounts, and solo-401(k) plans.

If you can live cheaply and make enough in your business, you can set up your own traditional pension plan and sock away all of your annual earnings in tax-favored retirement accounts.

These savings accounts pair a high-deductible health insurance plan with a tax-free savings account that allows account holders to accumulate money for their out-of-pocket costs.

These plans allow a couple to put away $5,650 tax-free in 2007 to use for healthcare whenever they want.

For retirement planning purposes, stash that money annually, but don't use it for healthcare until you retire.

If your employer doesn't offer an HSA plan, and the group coverage at your company isn't great, consider leaving the reservation and buying your own health insurance plan outside of your job, just so you can start using the HSA savings plan.

You can't open an HSA if you're covered by another plan.

Your contributions to the plan are tax-deductible, and you don't have to pay taxes on any money you withdraw for healthcare.

If you wait until you're retired and then withdraw the money for some other purpose, it's subject to income taxes.

That means it's no worse than a traditional IRA or 401(k) plan, and could be better. Start now, and in 10 years, that's another $100,000.

If you've locked in one of those under 6 percent fixed-rate mortgages, don't rush to pay it off; money won't be that cheap in the future. But get the house spiffed up the way you want it now. You'll find the repairs easier to afford while you're working, you'll enjoy living in your home, and it will fetch more money and be ready to sell faster once you're ready to move.

The big void for many retirees isn't cash, it's meaningful activity. Try different hobbies or activities, visit other places you might live, and prepare for your next phase of life just like your children are preparing for theirs.

Listen to the advice you give them: The more prep work they do now, the more options they'll have later.

Linda Stern is a freelance writer. She can be reached at lindastern@aol.com.