The 5 Best Ways To Catch Up On Your Retirement Savings

According to a 2024 survey by AARP, one out of five Americans aged 50 and older does not have any retirement savings, while a hefty 61% are worried about their ability to build savings substantial enough to support their retirement. Regardless of your age, the earlier you start investing in your nest egg, the more time your returns will have to compound. If you're worried you've started saving too late in life, you can still make up for lost time.

Maxing out on your current retirement accounts, cutting down on extra expenses, and trying to build additional sources of income are all great avenues for bolstering your retirement assets. If you think you need some extra time to catch up, you can even postpone retirement by a few years. You may also want to consider leveraging your current assets, such as home equity, to further fund your savings.

This may also be a good time to make a budget for the long term. Take stock of where your finances are at present, then set a realistic goal for how much you should save for your retirement every year. These decisions don't always have to constrain your lifestyle — you can still take vacations and spend on things you care about — but tracking your spending now could have a ripple effect on your lifetime's finances and give you a better sense of how long it would take to replenish your savings.

If your employer offers you the benefit of a 401k, making sure you're funding the account to its absolute maximum can be a great way to offset your savings deficit. As of 2026, employees can contribute up to $24,500 per year to their 401k. Even if you start saving at 40, assuming a 5% rate of return, your account could grow to well over $800,000 if you retire at 67 and max out your contributions every year. If you live for another 30 years, that might not sustain you indefinitely, but it's certainly a substantial amount to have saved up. Additionally, if your employer offers 401k matching, that figure could wind up significantly larger at no additional cost to you.

If you're above the age of 50, you also have the option to add additional funds to your 401k and IRA accounts in the form of catch-up contributions. You can make these catch-up contributions every year, though the exact amount you can add to your savings on top of the standard limits varies annually based on inflation. For a 401k, you can add up to $8,000 on top of the $24,500 maximum as of 2026. If you have a IRA, you can fund an extra $1,100 per year.

Once you conduct an audit of your expenses, you may be surprised by the number of areas where your cash might be trickling off in unexpected ways. This can be anything from gym memberships you don't use to the fullest to streaming subscriptions that you can do without. You can also cut down on a few restaurant meals or impulse buys and redirect all that unspent money toward your savings. These may seem like minute changes, but cutting these costs can leave you more cash to invest, and even small amounts can compound into something substantial over time.

You can also do a little more research on your current expenses to see areas where you can cut costs. For instance, you can opt out of your current car insurance plan in favor of one with lower premiums. You may also want to look into any outstanding debts you're carrying. Loan interest often accrues faster than invested money grows, and eliminating a high-interest credit card bill or debt could ultimately leave you with even more funds to put toward retirement.  

Similarly, you can also redirect any unexpected windfalls straight to your investment accounts. When bonuses hit your account, your first instinct might be to spend the money on something fun. However, you can use this money, as well as other substantial tax returns or inheritance, to further boost your retirement savings.

If you're a little late with your retirement plans, allowing them more time to grow is one of the benefits of delaying your retirement altogether. Working for a few extra years gives you more time to contribute to tax-advantaged accounts and avail catch-up contributions for longer. You can also keep enjoying any health benefits provided by your employer, which could further reduce your expenses. Delaying the year you retire will also reduce the number of years you have to rely on your savings down the line.

This decision can also get you extra Social Security benefits. The full retirement age (FRA) for people born after 1960 is 67, but working beyond that age can make you eligible for delayed retirement credits. These add roughly 8% to your Social Security checks per year that you work, and can accrue until you turn 70. A survey by Schroders found that only 10% of retirees plan on delaying their Social Security benefits until they are 70, and if maxing out your benefits doesn't sound like the path for you, even delaying by just a year or two after turning 67 can still increase your monthly payments while giving you a little extra time to add to your savings.

Fidelity recommends having six times your current income saved for retirement if you're in your 50s and plan to retire by 67. However, that figure comes with the assumption you have been saving and investing consistently since 25. If you're behind on your individual savings goals, you can consider alternative options to maximize your current assets, such as home equity.

Advisory Group wealth manager Kirk Chisholm explained to Investopedia, "A large portion of the population has most of their wealth tied up in real estate properties. This can be used in many ways to fund retirement. You can use a home equity line of credit (HELOC) to draw from when needed, or you could sell, downsize, and live off the equity." Downsizing is an especially viable option for those who have bigger homes than they need. You can free up cash locked up in home equity, which you can then use to fund other investment options.

Moreover, you can also reduce expenses like utility bills by shifting to a smaller living space. Of course, selling a home can be a drastic move with major tax implications. Depending on where you relocate, the costs of expenses like groceries and transportation could also increase and offset some of your earnings. So, unless you actively want to sell your home already, be sure the funds you'd access by downsizing will actually be valuable for your savings goals.

If you're eligible, you can also treat your Health Savings Account (HSA) similarly to a 401k or Roth IRA. HSAs offer the triple tax advantage of depositing, growing, and withdrawing your money completely tax-free, as long as the withdrawal is for medical purposes. As of 2026, you can contribute a maximum of $4,400 to this account for yourself, and $8,750 if you have an HSA established for your family. If you wind up only incurring minor healthcare expenses, you can even pay for those out of pocket and let the fund in the HSA compound over time. This can come in handy in the future should your medical bills become more significant, while also acting as something of a safety net for other unexpected expenses as well. You can use your HSA to pay for costs unrelated to healthcare, though you'll have to pay income taxes on whatever you withdraw. Those under 65 will also be subject to an additional 20% tax if they take money out of their HSA for non-medical reasons.

You can also try to open up new income streams. Whether it is an extra side hustle during your working years or a part-time job during early retirement, some extra cash always helps in building up your retirement funds. Alternatively, if you have extra space around your house and downsizing doesn't appeal to you, renting rooms out can also be another viable income source.