How to Retire In 10 Years with No Savings

Despite having nothing saved for retirement, it’s possible to retire in as few as 10 years. Cutting living costs and saving aggressively can help many people build enough investment income to retire within a decade. TThis approach demands discipline, consistency, and a willingness to give up life’s extras — both now and in retirement. And it’s likely not for everyone.

Talk to a financial advisor about your retirement savings plans to help you create the right plan for you.

Is It Possible to Retire In 10 Years with No Savings?

Retiring in 10 years with no savings may seem unrealistic, but it isn’t necessarily impossible. Achieving this goal typically requires a combination of aggressive saving, higher income and disciplined financial planning. While the timeline is tight, making significant financial changes can help improve your chances of building enough resources to support retirement.

One of the most important steps is dramatically increasing your savings rate. With only a decade to prepare, a large portion of your income may need to be directed toward retirement accounts and investments. Cutting unnecessary expenses and avoiding lifestyle inflation can help free up additional funds for saving.

Increasing your income can also accelerate progress. This may involve pursuing career advancement, switching to higher-paying roles or developing additional income streams through side businesses or freelance work. The more income you generate, the more you can potentially allocate toward retirement savings.

Another key strategy is maximizing tax-advantaged retirement accounts. Contributing to accounts such as 401(k)s or IRAs may allow your investments to grow more efficiently over time. If you are over age 50, catch-up contributions may also allow you to save more each year.

It’s also important to manage expectations about retirement lifestyle and timing. Retiring with limited savings may require reducing expenses, relocating to a lower-cost area or continuing part-time work. Adjusting your plans can help make the goal more achievable within a shorter timeframe.

While retiring in 10 years with no savings is challenging, focused planning and disciplined financial habits can significantly improve your financial position.

Retiring in 10 Years: Step by Step

How to Retire in 10 Years With No Savings

You can retire in 10 years even if you only earn an average annual salary, have nothing saved and won’t be eligible for Social Security or a pension. Here are the basic steps to follow:

1. Make the Commitment

The first step in preparing to retire in 10 years is simply deciding that you want to do it. The level of commitment and compromise this financial plan requires means it is not for everyone. Only someone fully dedicated to saving enough so they can retire in 10 years is likely to start the process and see it through.

2. Cut Your Costs

Assuming you want to go ahead, you will have to drastically slash your living expenses. This isn’t about skipping a latte or keeping your car a few extra years. It means making large, sustained cuts to spending. The idea is to live on just 25% or so of your income.

A 40-year-old American earning the average annual salary for people in that age group would need to cut their expenses to about 25% of $62,244 or $15,556 per year. That means making major changes like relocating to a low-cost area and downsizing your home, riding a bicycle or taking public transit instead of owning a car, shopping at thrift stores and maybe even growing some of your own food.

3. Save 75% of Your Income

This is perhaps the most difficult step. Saving 75% of your income will be extremely challenging, especially for people with families, but you’ll want to start by maxing out your 401(k), IRA and/or other retirement accounts.

In 2026, you can contribute up to $24,500 to a 401(k) and $7,500 to a traditional or Roth IRA. If you’re 50 or older, contribute the maximum catch-up amounts allowed by the IRS, which can supercharge your retirement savings. The IRS allows people 50 and older to save an extra $8,000 in their 401(k) and $1,100 in their IRA. Meanwhile, 401(k) account holders between ages 60 and 63 can save up to $11,250 in “super catch-up contributions” for a total of $35,750 in 2026.

After maxing out your retirement accounts, consider saving any extra cash in a brokerage account or even a health savings account (HSA) if you’re enrolled in a high-deductible health plan.

4. Invest Your Savings Wisely

An investment in a basket of large-cap stocks has returned approximately 10% annually over the long term. With a relatively short 10-year time frame, a more risk-appropriate option may be to invest in a diversified portfolio of stocks, bonds, cash and other assets and aim for an 8% annual return.

Of course, Returns will vary depending on market conditions. For example, 2022 was a particularly rough year for investors, as the S&P 500 lost nearly 20% and Nasdaq fell by 33%. Assuming an 8% annual return is achieved, after 10 years of investing approximately $45,000 per year, you will have a retirement nest egg of about $700,000.

5. Invest for Income

Now it’s time to stop working and live off the proceeds. There are many ways to generate income, many retirees use dividend-paying stocks to fund retirement. A typical portfolio of blue-chip dividend stocks pays about 3%.

A 3% yield on $700,000 generates $21,000 annually, the amount you’d live on in retirement (in addition to Social Security). It’s not a lot, but it’s more than you’ll have been living on while you were working, so it should be adequate even after accounting for fluctuations in dividend yield over time.

The Downside of Retiring In 10 Years

Trying to retire in 10 years with little or no savings can come with several challenges and trade-offs. A short timeline limits the amount of time your investments have to grow through compounding, which can make it harder to build a large enough nest egg. As a result, you may need to save aggressively or take on additional financial risks.

One potential downside is the pressure on your budget. In order to accumulate meaningful retirement savings within a decade, you may need to dramatically reduce spending or maintain a very high savings rate. This can require significant lifestyle adjustments that may be difficult to sustain over time.

Investment risk can also increase when you’re working with a shorter time horizon. Some individuals may feel tempted to pursue higher-risk investments in hopes of accelerating portfolio growth. While this strategy could lead to higher returns, it can also increase the chance of losses that set back retirement plans.

Another concern is limited flexibility if unexpected events occur. Job loss, medical expenses or market downturns could disrupt your progress toward retirement. Without a longer savings window, recovering from financial setbacks may be more challenging.

Finally, retiring with a smaller nest egg could mean adjusting your expectations for retirement. You may need to rely more heavily on Social Security, continue working part-time or adopt a more modest lifestyle. Understanding these trade-offs can help you build a more realistic plan for the years ahead.

Bottom Line

Retiring in 10 years is possible even if you haven’t saved anything so far. However, it requires foregoing ease and luxury now and in the future in exchange for amassing enough assets to sustain a secure but minimally comfortable lifestyle. Still, extreme saving and cost-cutting can build a retirement-sized portfolio in 10 years, or possibly less, depending on your commitment.

Retirement Planning Tips

A financial advisor can help you invest to achieve your financial objectives. 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.
SmartAsset’s Retirement Calculator can supply more nuanced answers to questions including how much you may want to spend in retirement, when you can retire, how much you’ll need to contribute and how to account for Social Security and other factors.