Key Points
Retirement savings may have taken a back seat while you handled monthly expenses, saved for a home, or focused on other near-term goals. Now that you’re further along in your career and earning more, you may be wondering whether you can still retire on your original timeline.
If you’re starting later than you hoped, you still have options. A focused savings plan can help you close the gap and make your retirement goals more achievable. These four steps can put you on stronger footing.
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1. Create more room in your budget for retirement savings
Start by reviewing your monthly budget to identify spending that may be higher than necessary. A budgeting app can make this easier if you prefer not to track everything manually. Look for categories where you can reduce expenses and redirect the difference toward retirement savings.
If cutting costs isn’t realistic, consider ways to increase your income. That could mean asking for a raise, taking on freelance work, or starting a side business. Even if you use some of the extra money for personal needs, prioritize raising your retirement account contributions first.
2. Contribute consistently and aim for the annual limits
Regular contributions can help your retirement savings grow faster, especially when they happen automatically. If you already contribute to a 401(k) through payroll deductions, consider setting up recurring transfers to an IRA as well. Most retirement accounts allow automatic contributions from a linked bank account.
Make sure you understand the annual contribution limits for the accounts you use and try to contribute as much as you can. In 2026, adults under 50 can contribute up to $24,500 to a 401(k) and $7,500 to an IRA.
Workers age 50 and older can also make catch-up contributions. In 2026, those who will be at least 50 by year-end can contribute an additional $1,100 to an IRA. For 401(k) plans, adults aged 50 to 59 and those 64 or older can contribute up to $32,500, while workers aged 60 to 63 by year-end can contribute up to $35,750.
3. Think carefully about when to claim Social Security
The age at which you claim Social Security can have a major impact on your monthly benefit and your total retirement income. Most people today reach full retirement age at 67, which is when they can receive the full benefit based on their work history.
Claiming before full retirement age can reduce your benefit by as much as 30%, while waiting beyond that age can increase your monthly payment by as much as 24%. The maximum benefit is available at age 70.
Claiming early may be appropriate if you have health concerns, a shorter life expectancy, or no other way to cover essential expenses. But if you can afford to wait, delaying Social Security may help stretch your personal savings and provide a larger guaranteed income stream later in retirement.
4. Consider easing into retirement instead of stopping all at once
If you’re still concerned about having enough money, a phased retirement may be a practical alternative to leaving the workforce completely. This approach lets you reduce your hours gradually rather than quitting all at once.
A phased retirement can give you more flexibility while still providing income to supplement your savings. It can also shorten the number of years your retirement accounts need to support you, giving your investments more time to grow.
Choose the strategies that fit your financial situation and begin implementing them as soon as possible. Review your progress at least once a year, adjust your plan when needed, and be willing to revise your retirement timeline if your savings still appear to be falling short.
