Turning 50 can feel like a significant milestone. You may be emerging from financially challenging years when you were paying for kids, cars, and a large mortgage. Now, as retirement looms ahead, your retirement savings are probably on your mind.
If you’re feeling behind in your retirement contributions, there’s no need to panic yet. There’s still plenty of time to reach your goals. With the right moves, you can boost your savings to have a comfortable, well-funded retirement by age 65. Keep reading for four ways you can quickly catch up on your retirement contributions.
How Much Should You Have Saved By 50?
Personal finance experts recommend saving 10 times your income by the age of 67 to retire comfortably. To get there, you should have six times your income saved by age 50.
According to the US Bureau of Labor Statistics, a 2022 survey showed that the average salary for people in the 45-55 age range was $64,428. By age 50, the average American should have saved $386,568.
Not quite there?
Don’t worry, you’re not the only one. A 2025 survey revealed that among Gen Xers aged 45 to 60, only 26% have saved six times their annual income for retirement. For those aged 60-67, only 28% have saved 10 times their income.
The majority of Americans are behind on retirement savings.
And if you’re part of that majority, it’s time to implement some changes today so you can get back on track.
4 Methods to Catch Up on Retirement Savings When You’re 50+
Here are four ways you can catch up on retirement savings in an efficient and impactful way:
1. Take Advantage of Catch-Up Room In a Traditional or Roth IRA
The government recognizes that people approaching retirement age may begin to shift their focus more towards their savings and wish to catch up if they’re not on track. That’s why certain tax-advantaged savings accounts offer catch-up provisions for individuals aged 50 and older. Utilizing this tax-free room can significantly help you make progress toward your retirement savings goals.
With a traditional or Roth IRA, individuals can contribute up to $7,000 annually. However, when you’re 50 and older, you get a little extra room with a catch-up provision. For 2025, the amount is $1,000, bringing your annual contribution room to $8,000.
If you have a retirement savings plan through your work, such as a 401(k), Roth 401(k), or 403(b), you gain an even greater advantage. The catch-up opportunity totals up to $7,500 annually. Which means you can contribute a total of $31,000 in 2025.
However, those aged 60 to 63 have an even higher catch-up limit increase of $11,250 for 2025, making their potential total $34,750.
Maxing out this tax-free contribution room for even 10 years can make a massive impact on your retirement savings.
Let’s look at the math.
Suppose two individuals had saved $100,000 by the time they were 50. Individual A decided to continue saving at $7,000 a year. By age 60, accounting for compound interest and a 5% average return, Individual A has $215,053.
Now, in comparison, Individual B chooses to save $31,000 annually from the ages of 50 to 60. At age 60, they’ll have $491,606 saved.
The difference is truly staggering!
2. Consider Other Tax-Advantaged Accounts
If you manage to max out your traditional or Roth IRA, consider opening up other tax-advantaged accounts. A tax-advantaged account can be:
- Exempt from taxation
- Tax-deferred
- Offers other types of tax benefits
Consider talking to a financial advisor to determine which accounts are most suitable for you. Your advisor will consider factors such as your age, income level, existing financial commitments, and your intended retirement age. The account options include a 401(k), Roth IRA, traditional IRA, Health Savings Account (HSA), and more.
Taking advantage of any tax benefits on your investments can help them grow faster.
3. Continue Investing With Brokerage Accounts
Once you’ve maxed out all your applicable tax-advantaged accounts, move on to investing in a regular brokerage account.
In a brokerage account, you’ll have to pay taxes on the money the same year it’s earned (not when the money is withdrawn from the account). This means every year you have realized capital gains, interest, or dividends, you’ll owe taxes on that amount.
Even with the extra taxes, a well-diversified brokerage investment portfolio can grow rapidly and increase your overall savings.
4. Consider Reducing Expenses
If you’re having trouble making significant contributions to your retirement accounts, consider whether you can reduce your expenses. Where can you cut costs to funnel the money towards savings instead? Perhaps if your children have moved out, you can consider downsizing. Alternatively, your household can downsize to one vehicle.
Plan Now, Retire Happy
Retirement will come sooner than you think. If you make smart changes, your retirement savings can still grow and leave you with a big nest egg in your golden years.
You might also be interested in: Planning for Phased Retirement: Your Guide to a Flexible Exit from Work
