Behind on retirement? Smart ways to catch up fast before it’s too late

Retirement planning tips: More than half of Americans age 50 and older worry they won’t have enough money in retirement, and nearly as many say they wish they had started saving earlier, as per a report. While no one can turn back the clock, there are still ways to catch up.

2025 Changes to Catch-Up Contribution Limits

Those 50 and older can make extra contributions to retirement accounts. That means an additional $1,000 each year to an IRA and $7,500 to a 401(k) or workplace plan. Starting in 2025, people between 60 and 63 can contribute $11,250 in catch-up funds, for a total of $34,750, as per a Yahoo Finance report.

Cash provides important liquidity, but experts note it shouldn’t sit idle. High-yield savings accounts currently offer up to 4.5% APY, compared with 0.01% at major banks and a national average of 0.4%, as per the report. For example, $10,000 left for five years in a high-yield account at 4% could grow to $12,518, versus just $10,005 at 0.1%, as per the Yahoo Finance report.


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Simple Ways to Boost Your Retirement Income

Three simple ways to boost retirement savings include asking for a raise, starting a side hustle, or switching to a higher-paying job, as per the report. Data from ADP shows job switchers often see bigger salary increases.

High-interest debt can quickly eat into a budget. Paying down balances, especially the highest-interest ones first, frees up money to put toward retirement, reported Yahoo Finance.

Budgeting helps identify extra dollars to save. One option, zero-based budgeting, assigns every dollar a purpose, making it easier to prioritize retirement savings, as per the report.

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Automation makes it easier to “pay yourself first.” Setting up automatic transfers ensures contributions happen regularly, either through personal accounts or payroll deductions, as per Yahoo Finance.

Employer matching contributions can double savings in some cases. For example, if an employer matches 5% of salary contributions, employees can effectively save 10% while only contributing 5%, as per the report.

Working beyond retirement age allows more time to save and invest. Delaying Social Security benefits between ages 62 and 70 also increases monthly payments, as per the Yahoo Finance report.

For those who feel behind, the next best time to start saving is now.

FAQs

What are easy ways to free up more money for retirement?
Asking for a raise, starting a side hustle, or switching to a higher-paying job can all help, as per the Yahoo Finance report.

Should I delay retirement to catch up on savings?
If possible, yes. Working longer gives your savings more time to grow and increases your Social Security payments.