Late to the retirement savings party? Feeling bad because you set aside only a little cash last year? Don’t despair. Whether you have a good salary or only a few pennies to spare, there are ways to tweak your retirement plan to beef up your nest egg.
“No one should feel bad about not saving; everyone has different financial goals at different stages of life,” says Emily Irwin, head of Wells Fargo’s advice center. “Maybe you had a career trajectory that didn’t enable you to contribute to your retirement in your 20s or 30s, or maybe you prioritized paying off student debt or making a down payment on a home, and the home appreciated in value. Those are still good dollars spent.”
Regardless of your situation, now is the time to focus on saving for retirement. After all, it can last thirty years. At last check, Americans think they need $1.26 million, according to The 2025 Planning & Progress Study by Northwestern Mutual. That’s a hefty amount, especially if you are late for the savings party.
The good news is that whether you’ve struggled to save or had other priorities that took precedence, there are ways to get started saving for retirement. Here’s how.
1. Build retirement savings with catch-up contributions
If you have a company-sponsored retirement savings plan, such as a 401(k), and haven’t contributed or saved a paltry sum, now is the time to change that.
For 2026, workers under 50 can contribute up to $24,500 to their 401(k). If you can't save that much, try to contribute as much as your company's match if it's offered. If you don’t, you're leaving free money on the table.
If you are 50 or older, catch-up 401(k) provisions can give your nest egg an additional boost. For 2026, savers can contribute an extra $8,000 to their 401(k). If you are between the ages of 60 and 63, you can contribute $11,250 in "super catch-up" contributions, for a total allowable contribution of $35,750.
“It’s the best way to start saving,” says Bill Van Sant, managing director at Girard, a Univest Wealth Division. “It's easier to stick to because it's coming out of your paycheck. Your budget gets used to it.”
Beyond maxing out your 401(k), a quick way to increase your retirement savings is to invest in other tax-advantaged or potentially low-fee vehicles such as an IRA, ETF or index mutual fund.
Van Sant advises considering investments in stocks and bonds to balance risk and tax implications. He pointed to an annuity as an option for individuals wanting to shelter a sizable income.
To understand how your savings compare to those of others in your generation, check out the average 401(k) balance by age and the average IRA balance by age. You may not be as far behind the pack as you think.
2. Commit to working longer
You may have an ideal age in your head when you plan to retire, but adding a few years to that can give you more time to save. If you think it doesn't matter, consider what working five more years can do for you:
1. Your nest egg continues to grow. As you work and contribute to your retirement savings, your account balances grow. Savings remain invested, which amplifies the growth even further.
2. Higher Social Security benefits. The longer you delay claiming Social Security benefits, the bigger your monthly payment will be. Payments increase 8% each year you delay up to age 70.
3. Greater income potential. If you work longer, you might continue to get raises or promotions. More money means a larger nest egg.
4. Save on health care costs. Medicare, which covers approximately 80% of healthcare expenses, doesn’t kick in until age 65. Before that, you're on the hook for health care costs if you don’t have employer-provided insurance.
“If retirement is coming in the next ten to 15 years, commit to staying in the workplace for fifteen years,” says Christopher R. Manske, a certified financial planner and president of Manske Wealth Management. “That’s a big difference from ten to fifteen years and by continuing to save for those last five years, you’ve made a big step in the right direction.”
3. Make your savings automatic
Whether you are saving more in the bank or in an investment account, take yourself out of the equation by making the savings automatic.
If the money going into your savings accounts is automatically deducted from your paycheck or your bank account, you are less likely to miss it. It’s easy to live on less if you don’t see it first.
“The first rule of saving is to save automatically,” says Rob Conzo, CEO and managing director of The Wealth Alliance. “You should be saving until you feel it a little bit.”
4. Cut your expenses
The start of the new year is the perfect time to reset your budget and overhaul your spending to save money, such as with the 50-30-20 budget rule.
To do that, write down all your expenses and find areas to cut back. “I cannot stress the power and importance of spending less money enough. Look at what you spend and make different choices,” says Manske.
Ask yourself why you are tight on cash and adjust your lifestyle. An adjustment could be as small as giving up the pricey coffee or as big as downsizing to a cheaper apartment. “You can save, but you can’t do it living the same way you’ve been living. It’s time to change, and it starts with the budget,” says Manske.
Speaking of expenses, investment fees could put your retirement at risk. Paying the median management fee of 1.9% would delay retirement by four years.
When identifying areas to cut costs, include fund expense ratios, investment management fees, and similar service charges in your list of potential savings.
5. Find hidden savings
If you’ve slashed your budget and overhauled your lifestyle but still can’t save, it’s time to find hidden areas you may have missed.
Your insurance is a good place to start. If you haven't shopped for auto insurance or homeowners insurance recently, do so. You may be able to save on your monthly premiums. At the very least, review your coverage. You may be paying for something you don’t need.
The same goes for your phone bill, cable, internet or streaming service. There may be cheaper options available.
Also, make sure you aren’t paying for subscriptions you no longer use or paying double for the same streaming service. By finding hidden pockets of savings, you can “generate extra chunks of money without making money,” says Van Sant.
6. Throw extra money to your savings
Whether it's a tax refund or a year-end bonus, spending it on a vacation or a new wardrobe may be tempting, but resist those urges. The better option is to allocate that money to your retirement savings account.
If you have an IRA and haven’t met the contribution limit, you can allocate the refund there. For 2026, you can contribute $7,500 to an IRA. If you are 50 or older, you can contribute an extra $1,100. The more money you have in accounts like an IRA, the greater you’ll benefit from compounding.
You can also use the money to increase your contribution percentage to your 401(k) or save it in your emergency fund. Some 401(k) plans will even let you contribute after-tax dollars that are not deducted automatically from your paycheck. Check with your plan administrator to see what's allowable.
7. Tap your house ... carefully
For some people, their home is their only savings; once they retire, they plan to sell the home and live off the proceeds. That scenario could work out if the house has appreciated or the mortgage is paid off and they move to a cheaper location for retirees.
It is a strategy fraught with risks. For starters, you are beholden to the real estate market. In a down market, selling your home may be difficult, or you may not get the price you want.
Plus, if you do sell, you may have to give up on a dream location if it's just as expensive as your current location.
“If that’s your plan, you have to remember you can't control the real estate market,” says Irwin. “You have to be careful, plan and be open to holding on to it longer.”
Irwin says to research your desired location early and often, at least five years before you want to retire, to ensure you can truly afford to downsize.
Don't procrastinate
The worst thing you can do is put off saving for another year.
Even if you set aside $50 a month for your retirement, that's better than nothing.
“Procrastinating on saving usually means that you’re spending everything. It’s rare that if someone is putting off saving, their checking account just keeps getting bigger and bigger,” says Manske. “Make saving be like a bill that you automatically pay once or twice a month.”
