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50+ and Haven’t Saved for Retirement? Here’s What to Do

Retirement Savings Strategies for Those Over 50

Author

Ark
May 10, 2025

If you’re 50 or older and have saved little or nothing for retirement, you may feel overwhelmed or even hopeless. However, it’s not too late to get your retirement savings back on track. By adopting strategic approaches and making intentional changes, you can build a comfortable retirement at a reasonable age. Below are seven actionable steps to help you catch up on your retirement savings.

1. Embrace the FIRE Movement

The Financial Independence, Retire Early (FIRE) movement, popularized over the last decade, emphasizes aggressive saving—often 20-40% of income—to achieve early retirement. While retiring in your 40s may no longer be feasible, the principles of FIRE can still apply. By adopting its strategies, such as disciplined saving and intentional spending, you can accelerate your savings over 15-25 years.

Resources to Explore:

  • Mr. Money Mustache: This blog, run by Pete, offers motivational articles and practical tactics. Its forum is a great place to connect with others.

  • Reddit’s Financial Independence Community: With nearly 2 million members, this active forum provides strategies and inspiration. Ignore the 20-somethings complaining about work and focus on applicable advice.

  • Books: Consider Retire Before Mom and Dad by Rob Berger, which outlines smart money strategies that align with FIRE principles.

These resources can inspire you to stay motivated and apply FIRE tactics to your unique situation.

2. Think Big: Slash Major Expenses

To boost your savings rate, start with your largest expenses: housing and transportation. These often account for the bulk of your budget, and reducing them can yield significant savings.

Ideas to Consider:

  • Housing: Could you downsize to a smaller home or move to a lower-cost area? Even planning to downsize in retirement can save money long-term.

  • Transportation: Evaluate whether you can eliminate a car, switch to a less expensive vehicle, or reduce car insurance costs.

For example, using a tool like Networthify, you can see the impact of cutting expenses. If you earn $50,000 annually, save $6,000 (12%), and spend $44,000, it might take 36 years to retire at an 8% investment return. By eliminating one car and saving an additional $500/month (doubling savings to $12,000/year), you could reduce that timeline to 26 years. Big changes can shave years off your retirement timeline.

3. The One-and-Done Method for Small Expenses

While big expenses offer the most savings potential, small expenses add up too. The “one-and-done” method involves making a single change that saves money month after month without altering your lifestyle.

Examples:

  • Car Insurance: Shop around to save $50/month.

  • Subscriptions: Cancel unused streaming services, gym memberships, or apps.

  • Debt Refinancing: Refinance high-interest debt to a lower rate.

For instance, reducing monthly expenses by $200 (from $3,000 to $2,800) lowers the annual need from $36,000 to $33,600. Using the 4% rule (multiplying annual expenses by 25), this cuts the required retirement savings from $900,000 to $840,000—a $60,000 difference. Automate these savings into an IRA or 401(k) to ensure they contribute to your retirement.

4. Prioritize Financial Goals

With limited resources, prioritizing financial goals is critical. Focus on high-impact opportunities first.

Key Priorities:

  • Employer 401(k) Matching Contributions: Always maximize these, as they’re essentially free money. This should take precedence over paying off low-interest debt.

  • High-Interest Debt: Use balance transfer credit cards (with 0% interest for 15-21 months, despite a 3% fee) to lower interest rates, freeing up money for savings.

  • Your Retirement Over Others: Avoid funding college savings for children or grandchildren until your retirement is secure. You can’t help others if you’re financially unstable in retirement.

Balancing multiple goals is fine, but prioritize what accelerates your retirement savings the most.

5. Build a Lifestyle-Friendly Side Income

A side income, even a small one, can significantly reduce the savings needed for retirement. Start exploring options now, as building a side hustle takes time.

Ideas:

  • Start a blog, YouTube channel, or freelance writing.

  • Offer consulting in your field.

  • Pursue a passion project that generates income.

For example, if you need $5,000/month ($60,000/year) in retirement, you’d need $1.5 million (using the 4% rule). Earning $1,000/month from a side hustle reduces your monthly need to $4,000 ($48,000/year), lowering the savings goal to $1.2 million—a $300,000 difference. Plus, extra income now can accelerate debt repayment or savings.

6. Stay Positive

It’s easy to feel discouraged if you’re behind on savings, especially when comparing yourself to others. Combat negativity by surrounding yourself with supportive people and resources.

Tips:

  • Connect with friends or family in similar situations to encourage each other.

  • Engage with online communities like Mr. Money Mustache or Reddit’s FIRE forums.

  • Listen to podcasts like Catching Up to FI or Choose FI for motivation.

Retirement planning is a marathon, not a sprint. Staying positive keeps you motivated for the long haul.

7. Use Free Financial Tools

Free tools can help you track your finances and assess retirement readiness without adding costs.

  • Empower (formerly Personal Capital): Link all accounts to track budgeting, cash flow, and retirement planning. Its robust retirement planner lets you model side income or housing changes.

  • Google Sheets: Use free budget templates (like those listed on Tiller’s site) to track expenses.

  • Mint.com: A free budgeting and retirement tool, though it includes ads you can ignore.

These tools provide clarity on your financial situation, helping you make informed decisions without spending money.

Conclusion

Catching up on retirement savings in your 50s or beyond is challenging but achievable. By embracing FIRE principles, slashing major expenses, optimizing small costs, prioritizing high-impact goals, building a side income, staying positive, and using free tools, you can significantly improve your financial future. Start today, stay consistent, and keep learning through forums, podcasts, and resources. With dedication, you can achieve a comfortable retirement in 15-20 years.

For more guidance, check out the resources mentioned, and feel free to ask questions in the comments below. The best thing money can buy is financial freedom—start working toward it now.

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