Catch Up on Retirement Savings

Quick Answer: Discover effective ways to catch up on retirement savings with safe money alternatives. Start planning for a secure future today!

In the past, we’ve looked at retirement planning strategies for specific populations, like self-employed Americans or women. But what if someone is part of the segment of Americans who aren’t that well-prepared for retirement?

According to a survey conducted by BankRate.com, 36% of surveyed adults say they didn’t have a penny saved for retirement. Around 25% of the people aged 50-64 in the survey reported they had yet to start their retirement savings. These findings are consistent with data found in previous surveys. In fact, previous data shows there’s a wide gap between Americans’ retirement expectations and what they’re actually prepared for.

A big part of it is because many American households live paycheck to paycheck. So what steps can you implement to catch up on retirement savings? Read on for some helpful tips.

Effective Strategies for Catching Up on Retirement Savings

Here are some strategies that you can use to close the retirement savings gap.

Take advantage of tax-deferred accounts

One simple way is capitalizing on the benefits of a 401(k) and an IRA. Current annual contribution limits are set at $18,000 for a 401(k) and at $5,500 for an IRA.

If you’re over 50 years old, you can contribute up to an extra $6,000 into a 401(k) and an extra $1,000 into your IRA. Taking the money directly out of your paycheck will help you keep on track with your goal.

Consider alternative vehicles for stashing retirement savings

What about high-income earners or people with just a few years left over to catch up? Traditional retirement accounts have set contribution limits that make it more difficult to accelerate savings and keep it safe from taxation.

For people in this situation, other vehicles, such as annuities, can be used for tax-advantaged savings. They also offer the ability to help you meet retirement financial and income goals later on.

An annuity allows for additional, pre-tax savings to be put away. However, that doesn’t mean it is for everyone. Be sure to receive guidance from a qualified financial professional if considering this option.

Wipe out the debt

Saving is an optimal goal. But it’s also important to remember debt will continue to be a burden in retirement. If you work toward paying off long-term debts now, they will pose fewer constraints to your finances in the future. Experts recommend your home mortgage or vehicle loans as long-term debts on which to focus.

Lengthen the time you’re working

People who are currently retired or approaching retirement are opting to work longer. Part-time employment is a solid choice for income supplementation. It’s also another means of staying active and engaged in retirement.

If you’re still working, it may be worth it to consider a longer period of employment so you have greater earnings to contribute. On the flip side – if you’re considering employment in retirement, it’s important to recognize the opportunities for employment may not always be available.

Factors such as decline in health or unexpected life events can change a person’s employment capacity quickly.

Don’t take shortcuts

When catching up on retirement savings, shortcuts may be enticing. But it’s critical to employ strategies that align with your current life situation. As you get closer to your retirement date, be mindful of how much of your money is in market-based investments.

If the market takes a downturn, you’re not only losing money – you also have a shorter timespan for recovery and build-up toward retirement savings once again.

Portfolio diversification is key. Be sure your portfolio is suited to your age, needs, future goals, and other individual factors.

Need Help?

At SafeMoney.com, we recognize education is the first step toward any retirement planning. Use the articles we have on here for your educational betterment. And when you’re ready for personal guidance, meeting with a financial professional can help bring retirement peace of mind.

Use our Find a Licensed Advisor section to connect directly with an independent financial professional, and to request a personal strategy session to discuss your needs and goals. And should you have any questions or concerns, call 877.476.9723.

Frequently Asked Questions About ways to catch up on retirement

What are some effective ways to catch up on retirement savings?

To catch up on retirement savings, consider increasing your contributions to retirement accounts like IRAs or 401(k)s, especially if you are eligible for catch-up contributions. Additionally, explore safe money alternatives such as fixed annuities that can provide guaranteed income and help grow your savings without market risk.

How can I safely invest my retirement savings?

Investing your retirement savings safely can be achieved through options like fixed annuities and other safe money alternatives that offer stability and predictable returns. These investments can help protect your principal while still allowing for growth, making them ideal for retirees looking to preserve their wealth.

What are the benefits of using safe money alternatives in retirement planning?

Safe money alternatives, such as fixed annuities, provide a reliable way to generate income during retirement without the volatility associated with traditional investments. They can help ensure that you have a steady cash flow while protecting your savings from market downturns, which is crucial for maintaining financial security in your later years.

At what age should I start catching up on retirement savings?

It's never too late to start catching up on retirement savings, but many experts recommend focusing on this as you approach your 50s and 60s. At this stage, you can take advantage of catch-up contributions and consider reallocating your portfolio to include more safe money alternatives, ensuring you have a solid foundation as you transition into retirement.

Take the next step, run the numbers with our free retirement calculators.

Updated May 2026: The SECURE 2.0 Act introduced a 'super catch-up' contribution for workers aged 60–63 starting in 2025: this group can contribute up to $34,750 to their 401(k) annually, providing a significant accelerated savings window in the final years before retirement.