It can feel unsettling to look at your retirement account and wonder if it will stretch far enough. Many older Americans share this worry, especially when they realize they may only have a decade or so before they stop working full time. The good news is that it’s rarely too late to take meaningful steps to strengthen your savings. Planning ahead, staying informed, and using every tool available can help you feel more secure about your retirement years.
Here are five practical steps you can take to catch up on retirement savings when you’re within ten years of retiring:
Maximize Your Contributions
If you’re 50 or older, you can make what are known as “catch-up contributions” to certain retirement accounts. The IRS allows extra contributions beyond the standard limit:
- For 2025, you can contribute an additional $7,500 to a 401(k), on top of the $23,000 limit.
- For IRAs, you can add an extra $1,000 to the regular $7,000 limit.
If you have the means, try to increase your contributions gradually. For example, raise your savings rate by one percent every few months until you reach the maximum. Many employers also offer matching contributions, so if possible, contribute at least enough to get the full match if you can.
Consider Delaying Social Security
Working a few extra years or delaying when you claim Social Security can help your savings last longer. According to the Social Security Administration, for every year you wait past full retirement age (up to age 70), your benefit grows by about 8% per year.
This delay can make a big difference over time. If you’re healthy and want to continue working, this extra income and higher future benefit may ease pressure on your retirement accounts.
Tighten Up Your Spending
Taking a closer look at current spending habits can free up money to put toward savings. Start by tracking your expenses for a month or two. Once you know where your money goes, identify areas where you can cut back.
Some ideas to consider:
- Review subscription services and cancel those you rarely use.
- Downsize or refinance if your housing costs are high.
- Shop for better deals on insurance or utilities.
Redirecting even a few hundred dollars each month into your retirement account can add up over a decade.
Use Tax-Deferred Accounts Wisely
Tax-advantaged accounts can make your dollars work harder. In addition to 401(k)s and IRAs, some people may benefit from a Health Savings Account (HSA) if they have a high-deductible health plan. HSAs allow you to contribute pre-tax money, grow it tax-free, and spend it tax-free on qualified medical expenses.
Look into whether you qualify for an HSA and how much you can contribute. According to the Mayo Clinic and IRS guidelines, HSAs can be a helpful tool for covering healthcare costs later while easing the strain on your retirement savings.
Seek Out Free or Low-Cost Guidance
Many older adults assume financial advice is only for the wealthy, but free or affordable resources are available:
- AARP offers retirement planning tools and calculators.
- Local nonprofits and senior centers sometimes host free workshops.
- Some employers provide access to financial planners or advisors at no cost.
Meeting with a trusted professional can help you set realistic goals, understand your options, and avoid costly mistakes.
By making the most of catch-up contributions, delaying benefits when you can, spending wisely, using tax-advantaged accounts, and asking for help when you need it, you can take practical steps to boost your confidence and security in retirement. Your future self will thank you for the effort you put in today.
