How to Catch Up on Retirement Savings in Your 50s

If you’re in your 50s and feel like you’re behind on saving for retirement, you’re not alone. Many people suspect that they may not have saved enough to comfortably retire. Even if retirement is not far off, there’s still time to for you make up ground. You can catch up on your retirement savings and prepare for a more secure future by implementing sound financial strategies. Eliminating high-interest debt, maximizing your retirement contributions, and downsizing are a few of the steps you can take to bolster your savings.

A financial advisor can also help you create a personalized plan to get you back on track. 

Retirement Savings: How Much Should I Have in My 50s?

By the time you reach your 50s, financial experts often recommend having saved six to eight times your annual salary. For example, if you earn $100,000 per year, your retirement savings should ideally be between $600,000 and $800,000 by the time you’re in your early 50s. 

This amount helps ensure that you’ll have enough money to replace 70% to 80% of your pre-retirement income. This figure is what many experts suggest for maintaining a comfortable lifestyle after you stop working.

If you’re not on track to meet this goal, don’t worry. There are still steps you can take to catch up. It’s important to first assess where you are. Start by calculating how much you’ll need for retirement so you can develop a plan for increasing your savings. Using online retirement calculators or working with a financial advisor can help. Make sure you set clear, attainable goals based on your current savings and desired retirement lifestyle.

Minimize High-Interest Debt

Eliminating high-interest debt can help empower anyone nearing retirement. Debt with high interest rates, such as credit card debt, can drain your financial resources. This will make it harder to save for retirement. The longer you carry this debt, the more you’ll pay in interest, which means less money available for retirement savings.

By paying off high-interest debt, you free up additional income that can be redirected toward your retirement accounts. Reducing debt also gives you more flexibility in retirement. Once you eliminate this debt, you can focus on building your savings and investing for the future.

Maximize Retirement Contributions

One of the most effective ways to catch up on retirement savings in your 50s is to maximize your retirement account contributions. For individuals age 50 and older, the IRS allows catch-up contributions, which provide the opportunity to contribute more than the standard limits. 

In 2026, you can contribute up to $32,500 per year to a 401(k) if you’re 50 or older. This includes the standard limit of $24,500 plus an additional $8,000 in catch-up contributions. For IRAs, the catch-up contribution allows you to contribute an extra $1,100, bringing the total annual limit to $8,600. ¹

If you’ve already maximized your 401(k) or IRA contributions, consider diversifying your retirement savings with low-risk options such as:

• Certificates of deposit (CDs): CDs offer a fixed interest rate over a set term. They can be a safe way to earn interest on your savings.
• High-yield savings accounts: These accounts typically offer higher interest rates than traditional savings accounts. This allows your money to grow quickly while keeping it easily accessible.

Consider Downsizing

In your 50s, you may find that your home is bigger than you need, especially if your children have moved out. Downsizing to a smaller home can help reduce your monthly housing expenses, such as mortgage payments, utilities and maintenance costs. Selling your current home may also provide you with extra cash that can be put toward your retirement savings.

Downsizing can also simplify your lifestyle, making it easier to manage your home and reduce stress as you approach retirement. With fewer responsibilities, you can focus more on your financial future and make your remaining working years count by saving more and spending less. Before downsizing, consider your future housing needs, and ensure that the move aligns with your long-term financial and lifestyle goals.

Other Retirement Strategies to Consider in Your 50s

In addition to maximizing savings and downsizing, here are five strategies that can help you prepare for retirement:

• Set a retirement budget: Estimate your post-retirement expenses and create a realistic budget. This will help you determine how much you’ll need to cover daily living expenses, healthcare and leisure activities once you stop working.
• Plan when to claim Social Security: Waiting until your full retirement age or beyond up to age 70 can increase your monthly payments, offering more financial security throughout your retirement. However, ill health, shorter life expectancy, physically demanding work and other circumstances may suggest claiming earlier.
• Plan for healthcare needs: Healthcare costs can be significant in retirement. Consider contributing to a health savings account (HSA) if you’re eligible, or looking into long-term care insurance to cover future medical expenses that Medicare may not cover.
• Consider annuities: Annuities can provide a guaranteed income stream in retirement. Although they are costly and complex, they can help supplement Social Security benefits and ensure a stable source of income.
• Consult with a financial advisor: A financial advisor can help you assess your current savings, develop a catch-up plan, and adjust your retirement strategy based on your goals. Their expertise can be invaluable in ensuring you’re on the right track.

How Can a Financial Advisor Help You Boost Your Savings

If you are in your 50s and behind on retirement savings, advice becomes useful when tradeoffs start to overlap. You may be deciding whether to increase 401(k) deferrals, pay off remaining debt, fund an IRA, or hold cash for near-term needs. At this stage, saving more often means reallocating limited dollars rather than simply adding new ones, which raises questions about priority, tax liability, and timing.

In this situation, the decisions are technical and interdependent. You may need to choose between pre-tax versus Roth contributions, decide how aggressively to use catch-up limits, or determine whether accelerating mortgage payoff improves long-term outcomes. You may also be weighing whether downsizing frees capital for investing or whether staying put supports cash-flow stability. Each option changes taxable income, liquidity and risk exposure.

A financial advisor helps by modeling these choices together rather than in isolation. That analysis may include projecting retirement balances under different contribution schedules, estimating lifetime tax liability under pre-tax versus Roth mixes, and stress-testing withdrawal plans against market downturns early in retirement. Advisors also evaluate how savings rates interact with Social Security claiming age, pension income (if any) and required minimum distributions later on.

What to Ask Your Advisor

You could ask targeted questions such as: How much additional savings is required if you retire at 65 instead of 67? Does shifting part of your 401(k) to Roth reduce taxes once required distributions begin? How much cash should stay outside retirement accounts to cover five years of expenses? Would paying off a 6% mortgage outperform investing the same dollars after tax? These questions focus on numbers, not general goals.

Advisor value often shows up where complexity or timing creates risk. Catch-up contributions help only if cash flow supports them. Roth strategies can backfire if they push you into higher tax brackets late in your career. Downsizing can release capital but may reduce flexibility if housing costs rise later. An advisor’s role is to quantify those drawbacks before decisions become difficult to reverse.

At this stage of life, small errors compound quickly because the timeline is shorter. Coordinating savings, taxes, and withdrawals requires sequencing, not just higher contributions. An advisor adds value by structuring that sequence so each dollar you save in your 50s works within a broader retirement income plan rather than standing alone.

Bottom Line

You can successfully catch up on retirement savings in your 50s. By maximizing your contributions, paying off high-interest debt, downsizing and exploring other retirement options, you can improve your financial situation and prepare for a secure future. The key is to take action now and stay disciplined in your saving and investing.

Tips for Retirement Planning

• A financial advisor can help you create a retirement plan to maximize your savings. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. 
• A central question in retirement planning is how much your investment portfolio will grow over time. SmartAsset investment calculator can help you get an estimate.

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