Originally published July 2015. Last updated March 2026.
If your retirement savings aren’t where they should be, you’re not alone. But knowing others are in the same situation doesn’t fix yours. Here’s what actually helps.
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1. Downsize or Relocate
Housing is most people’s biggest expense. Downsizing or moving to a lower cost-of-living area frees up cash for savings. The math is straightforward: if downsizing saves you $1,500/month and you invest that for 10 years at 8%, you’d have roughly $275,000.
2. Max Out Catch-Up Contributions
Starting at 50, the IRS gives you higher limits:
- 401(k): $31,000/year ($23,500 + $7,500 catch-up). Ages 60-63 get a super catch-up: $34,750 total.
- IRA: $8,000/year ($7,000 + $1,000 catch-up)
- HSA: $4,300/$8,550 (+ $1,000 catch-up at 55+)
These limits exist specifically for late starters. Use them.
3. Work Longer (Even Part-Time)
Each year you work is a year you’re saving instead of spending, and your investments have one more year to grow. Part-time or freelance work in retirement reduces portfolio withdrawals. Earning $25,000/year means $25,000 less from savings.
If you claim Social Security before full retirement age (67) and earn above $23,400 in 2025, some benefits are temporarily withheld. After full retirement age, there’s no limit.
4. Delay Social Security
Every year you delay between 62 and 70, your benefit increases by 6-8%. At 62 you get 70% of your full benefit. At 70 you get 124%. For a $2,500 monthly benefit at 67, that’s $1,750 at 62 vs. $3,100 at 70.
5. Cut Expenses and Redirect
Track spending for 30 days. Most people find $500-$1,000/month they can reduce. Set up automatic transfers so the money moves to retirement accounts before you can spend it.
FAQ
How much should I have saved by 50?
A common benchmark is 6x your annual salary. But don’t fixate on benchmarks. Focus on the gap between what you have and what you need, then close it.
Is it too late to start saving at 55?
No. Ten years of maxing a 401(k) at $31,000/year at 8% returns gets you roughly $450,000. Add Social Security, expense reduction, and part-time income, and a comfortable retirement is still achievable.
Schedule a free 20-minute consultation to build a catch-up plan for your situation.
R.L. Brown Wealth Management
106 W Vine St, Suite 300, Lexington, KY 40507
859.317.5889
