Behind on Retirement Savings: Potential Tips to Catch Up

August 5, 2025

If you’ve looked at your retirement account and felt a pit in your stomach, you’re not alone. Many Americans find themselves behind on retirement savings—sometimes significantly. Life happens: job changes, family responsibilities, health issues, or simply not knowing where to start.

The good news? It’s never too late to make meaningful progress. With focus, discipline, and the right strategies, you can still work toward a more secure financial future.

Here are several smart steps you can take if you're behind on saving for retirement.

1. Don’t Panic—Assess Where You Are

The first step is to take a clear, honest look at your current financial situation. This includes your savings, debts, monthly expenses, and possible sources of retirement income. These can be Social Security, pensions, or rental properties. Use a retirement calculator to estimate how much you’ll need based on your lifestyle goals.

You might not like what you see. However, knowing the gap between your current situation and your goals is important for making a plan.

2. Maximize Retirement Account Contributions

One of the most effective things you can do is increase your retirement savings rate—aggressively, if possible. If you’re over 50, the IRS allows you to make “catch-up” contributions. For 2025:

●     You can contribute up to $30,500 to a 401(k) if you’re 50 or older (including a $7,500 catch-up).

●     You can contribute up to $8,000 to an IRA if you’re 50 or older (including a $1,000 catch-up).

If you have both accounts, consider contributing to both if your budget allows. Remember Health Savings Accounts (HSAs). They can be used for qualified healthcare costs in retirement and provide tax benefits.

3. Delay Retirement If Possible

Working longer—even by a few years—can significantly improve your retirement outlook. It gives you more time to save, allows your investments to grow, and reduces the number of years your savings will need to cover.

Delaying Social Security can also help. For every year you delay past full retirement age (up to age 70), your benefit increases by about 8%. That could mean a substantial increase in your monthly income for life.

4. Cut Expenses and Live Below Your Means

This may be the hardest part emotionally, but it’s often the most impactful. Downsizing your home, driving a used car, or limiting vacations can free up money to put toward retirement. Even small changes—like canceling unused subscriptions or eating out less—can add up over time.

Building a leaner lifestyle now can also help you adjust to a more modest income in retirement.

5. Consider Additional Income Streams

If you're able, consider taking on part-time work, freelancing, or turning a hobby into a side hustle. Even a few hundred extra dollars a month can make a difference when consistently directed toward savings or used to reduce debt.

Rental income, consulting, or seasonal work can supplement savings and reduce the pressure on your investment accounts in retirement.

6. Make Smart Investment Choices

Being behind doesn't mean you should take reckless risks, but it does mean your investments need to work efficiently. Review your asset allocation to ensure it’s appropriate for your age and risk tolerance. A well-diversified portfolio can help you grow your nest egg without swinging for the fences.

If you’re unsure about where to invest, speaking with a financial advisor may be worth the time and cost.

7. Focus on Paying Off Debt

High-interest debt—like credit card balances—can be a major drain on your finances. Create a strategy to eliminate these debts as quickly as possible. The money you free up can then be redirected toward savings.

Paying off your mortgage before retirement can also reduce your monthly expenses significantly.

Final Thoughts

Catching up on retirement savings can feel overwhelming, but it’s entirely possible with the right mindset and plan. The key is to take action—today. Small improvements made consistently over time can have a powerful compounding effect.

Remember: it’s not about perfection. It’s about progress. Even if you’re behind, you still have tools and time to build a retirement you can feel good about.

Sources:

https://www.thepennyhoarder.com/retirement/catch-up-on-retirement-gallery/

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.