Retirement is something many Americans plan decades for in hopes of achieving. Sadly, only 40% of Americans aged 61 to 65 are ready for retirement, according to a recent report from Vanguard. The rest of the people in their 60s will largely depend on Social Security to make ends meet in retirement.
Falling short of financial security in your 60s is concerning, but there’s often still time to recover. Here are four ways to get on track for retirement if you’re in your 60s.
Also see 50 habits that will prepare you for a comfortable retirement.
Reassess Your Goals and Timeline
It’s challenging to plan effectively if you don’t know where you stand. Now is the time to take stock. Calculate your savings, income sources and expenses, and pair that with determining what you need to maintain a comfortable lifestyle in retirement.
Part of this process may include downsizing or relocating to reduce costs. It may also be necessary to delay claiming Social Security benefits as long as possible.
Delaying benefits can increase your monthly benefits by 8% for each full year you wait past your full retirement age, up to 70 years of age, according to the Social Security Administration. That could lead to a substantial amount. Consider speaking with a trusted financial advisor to formulate your plan.
Read More: Here’s What Retirees Wasted the Most Money On in 2025 — and How To Avoid It in 2026
Check Out: 5 Clever Ways Retirees Are Earning Up To $1K per Month From Home
Max Out Catch-Up Contributions
The IRS allows Americans over age 50 to make catch-up contributions to retirement accounts. If you have earned income and can afford it, this can be a good way to save more for retirement if you qualify.
If you’re contributing to a 401(k) plan, people over 50 can add an extra $7,500 in 2025, for a total of $31,000. For those with traditional or Roth IRAs, the IRS allows people over 50 to contribute an additional $1,000, bringing the possible total contribution to $8,000.
Even a couple of years of maximum contributions can add up, especially when you consider tax advantages and compound growth.
Eliminate Debt and Unnecessary Expenses
High-interest debt can strain any budget, particularly for those nearing retirement and preparing to live on a fixed income. Nearly half of Americans over 50 carry credit card debt, according to AARP. Paying off that debt before entering retirement is essential and can reduce the amount of savings you may need.
Similarly, unnecessary spending can drain a retirement budget. Review your budget to identify possible budget leaks, such as unused subscriptions or excessive dining out. Cut where you can and apply the savings toward repaying debt or growing your wealth.
Consider Alternative Income Streams
Just because you may be near retirement doesn’t mean you have to stop working. If you want to stay active in retirement, part-time work or consulting can be a legitimate way to earn income, even if you receive Social Security.
The Social Security Administration allows retirees to earn income, without impacting benefits, up to a certain amount. At the year you reach full retirement age, the amount is $62,160 in 2025, according to the Social Security Administration. After that, it deducts $1 in benefits for every $3 you earn.
There’s no need to return to full-time work, but monetizing a hobby, generating rental income and freelancing are all good options to establish an income stream.
It’s never too late to improve your financial outlook. Making minor changes and reducing unnecessary spending can create solid progress to create momentum as you head toward retirement.
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This article originally appeared on GOBankingRates.com: 4 Ways To Get on Track for Retirement If You’re in Your 60s
