6 Ways To 'Catch Up' on Savings as You Get Older
Saving for retirement is important, and the later you start, the more difficult it can be. If you’re in your 50s or 60s and are feeling behind, you’re not alone. But the good news is there’s still enough time left to catch up.
Half of Americans have less than $10,000 saved for retirement, and many will rely on Social Security to make up the difference. However, if you’re still in your working years, you can make a big impact on your retirement savings in the next 10 to 15 years.
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We chatted with licensed financial planners to get their best tips on preparing for a rich retirement later in life. They’ve worked with many clients in your same situation, and here’s how they would advise saving for retirement at a later age.
1. Don’t Give Up
While it may feel a bit hopeless to play “catch up” when retirement is approaching, you shouldn’t give up hope. In fact, you may be in a great financial position, even if you don’t have a lot invested.
Kevin Estes, founder and financial planner at Scaled Finance, believes there is hope for older savers.
“Someone who’s established in their career may be closer to their financial goals than they think,” Estes said. “They might have more income than ever, a low mortgage balance and 35 years of earnings for Social Security retirement benefits.
“Time is still an ally,” he continued. “A portfolio with an 8% annual return will double about every nine years. A 50-year-old with $200,000 saved for retirement might see that value quadruple to $800,000 by age 68 without additional contributions.”
2. Create a Financial Plan
It’s important to have a specific financial plan in place to make sure you are allocating your retirement efforts in the right places. Working with a licensed financial advisor can help you put this together.
"Outline your goals, income, expenses and assets. A clear roadmap will help you understand your financial position and plan for the future. Consider consulting a financial advisor for personalized guidance," said Terrie Amundson, certified financial planner (CFP) at The Heights Financial.
3. Increase Retirement Savings
There are several opportunities to save more in tax-advantaged accounts once you are older. This can help you catch up on your retirement savings while saving money at the same time.
“Experienced workers have extra savings opportunities,” Estes said.
As of 2026, anyone 50 years or older can make an additional contribution of $8,000 to their 401(k), 403(b) or 457(b) plan. That can add up to a total contribution of $32,500 and may reduce current taxes, grow without incurring taxes and be taxed at a lower rate when withdrawn in retirement. There is also a super catch-up contribution for those ages 60 to 63, which allows you to add $11,250 instead of just $8,000.
"Traditional and Roth IRA accounts have a similar ... catch-up," Estes said, bringing your total possible contribution to an IRA to $8,600.
Ryan Firth, founder of Mercer Street Personal Financial Services, explained how you can save a lot later in life.
“The key is to save as much as possible as soon as practical, FIRE-style,” Firth said. “Someone in their 50s and 60s is presumably in their prime earning years, so if they have their lifestyle spend under control, then they should have a lot of disposable income that can be socked away in tax-advantaged accounts like a 401(k), IRA and a health savings account (HSA)."
4. Open an HSA
Estes recommended a health savings account (HSA) for the tax savings. HSAs allow individuals who have access to a high-deductible health plan to contribute money to a tax-advantaged savings account.
“For those on a high-deductible healthcare plan, HSA contributions may avoid tax altogether,” Estes said.
In 2026, the limits are $4,400 for an individual and $8,750 for a family. Those ages 55 and older can contribute an additional $1,000.
Jeffrey McDermott, CFP at Create Wealth Financial Planning, LLC, is also a fan of HSA accounts. “Use your HSA as a supplemental retirement account.
“An HSA can offer great tax advantages to savers with a tax deduction on the contributions, tax deferral on growth while the money is in the HSA and tax-free use for qualified withdrawals — a triple tax advantage. Most HSA plans allow you to invest the money once you’ve reached a certain threshold of cash, so if you can keep the money invested and pay out of pocket for current medical expenses you will have an extra tax-advantaged bucket of money to use for healthcare in retirement. Note that you must be on a high deductible healthcare plan to access an HSA so make sure your healthcare plan is right for you before enrolling in the HSA.”
5. Reduce Your Debt
Having debt in retirement can hurt your monthly cash flow and make it harder to retire. Reducing high-interest debts with high monthly payments can help you keep more money in your pockets.
Amundson believes in paying off high-interest debts before retirement.
He recommended, “Prioritize paying off high-interest debts, such as credit card balances, to redirect funds toward savings. Trim discretionary spending, like dining out and unused subscriptions, to free up funds for savings. Evaluate your housing needs and consider downsizing to reduce costs or release home equity.”
6. Consider Part-Time Work
If you aren’t sure you’ll have enough, part-time work may help you bridge the gap.
Amundson believes that a part-time job can help ease you into retirement, as well.
“Consider using any available free time for part-time or freelance work to increase income, stay socially engaged, and pursue personal interests — all of which can be valuable in your upcoming retirement years.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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