How to catch up on your retirement savings

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Even if it feels like time is running short, you can still take steps to help stay on track for the retirement you want.
As you approach retirement, you may be concerned that your retirement nest egg is not as large as you'd planned. But no matter where you are in the retirement planning process or how much you've socked away, you may be able to do more to help prepare for a comfortable retirement. "Even if you got a late start, you still have ways to make up for lost time," says Christopher Vale, senior vice president, Preferred Client Experience at Bank of America. Here are five steps to consider that can help get you closer to the retirement you envision.
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1. Put away a little more

Beginning in the calendar year in which you turn 50, you can make annual catch-up contributions to an individual retirement account (IRA) and a 401(k) plan, provided you are eligible under the terms of the plan. That's in addition to the regular contribution limits for that year. If you’re age 60 to 63, you can make even larger catch-up contributions to your 401(k) or other workplace retirement plan accounts, plan rules permitting, thanks to a provision of the SECURE 2.0 Act that took effect in 2025. If you’ve reached these ages and haven't yet taken advantage of these catch-up opportunities, you can start now. See the current annual contribution limits.
Contributing a little extra to your retirement investments each month could yield rewards later. For example, putting an additional $50 a week toward retirement could, after 10 years, yield an additional $37,126 in your retirement pot. After 20 years, that sum could potentially grow to more than $115,000 as the hypothetical illustration below shows.Footnote 1 If you can't find the extra cash now, consider pledging to increase the amount of your contribution if you receive a salary increase, bonus or tax refund.

If you invested an extra $50 a week

Imagine taking the money you spend on little splurges — a few takeout lunches or a couple cups of coffee — and investing it in your retirement account. As shown below, a bit of sacrifice and reinvestment could potentially really add up over time *
Finding an extra $50 a week to invest could yield $37,126 in 10 years, $69,164 in 15 years, $115,805 in 20 years and $183,703 in 25 years. You can find an extra $50 per week by using the money saved on three lunches out, three bottles of water and two cups of coffee.
*Assumes four weekly contributions per month at an annual rate of return of 7.8%, compounded monthly for the stated number of years. Prices for goods assume $4.00/cup of brewed coffee, $12.50/lunch eaten out and $1.50/bottle of water.

2. Work a little longer

Postponing retirement can make a lot of sense. "Many of us are healthier at age 65 than the average retiree of our parents' generation," Vale says. Working a year or two longer can not only boost your savings considerably but also give your investments more time to potentially grow before you begin drawing on them for income. What's more, you won't have to stretch your retirement assets over as many years.
Staying in your current job may not be the only option. Consider whether you'd like to work closer to home, for example, or in a field you're more passionate about. Working part time to provide additional income is another option and, for some, a social outlet. But keep in mind that it could be risky to rely on working as your sole way of making up a shortfall. Indeed, according to the 2025 Retirement Confidence Survey by the Employee Benefit Research Institute and Greenwald Research, 75% of workers say they expect to work for pay in retirement, but only 29% of current retirees report actually doing so.Footnote 2 That suggests that outside factors may get in the way.

3. Defer taking Social Security

You can opt to start taking reduced benefits as early as age 62. But if you defer Social Security payments until full retirement age (ages 66-67 based on date of birth), you will receive 100% of your retirement benefit. And each year you delay beyond full retirement age, your monthly benefit grows until age 70, when you earn the maximum amount. The additional income you gain by deferring payments can add up quickly as the graphic below illustrates.

The financial rewards of delaying Social Security

To understand the benefits of deferring Social Security, consider this example of a person who reached age 62 in 2025.
If the person claimed Social Security at age 62, they would receive a monthly benefit of $700. If the person claimed Social Security at their full retirement age of 67, they would receive a monthly benefit of $1,000. If the person claimed Social Security at age 70, they would receive a monthly benefit of $1,240.
*Source: Social Security Administration, “Social Security Benefits: Early or Late Retirement?” accessed April 2025.Footnote 3
Vale recommends that you consider tapping into other assets to cover expenses or find ways to reduce spending rather than drawing Social Security too early.

4. Rethink your housing situation

If you no longer need the space you once did, consider downsizing. Reduced living costs — including lower utility and maintenance expenses — could free up cash to put into savings, and you could invest any profits from the sale of your home. Even if you don’t want to downsize, you might have more money to put toward retirement if you move to a neighboring town with lower property tax rates or to a state with no personal income tax. Talk to your tax advisor to determine whether relocating might present an opportunity for you.
If you plan to stay in the same house through your retirement years, consider factors such as your future ability to climb stairs and whether you'll need to use savings to retrofit your home so you can age in place.

5. Realign your portfolio

Your asset allocationFootnote 4 should typically become more conservative as you approach retirement, and if your nest egg is smaller than you’d hoped for, you may be especially risk averse. But continuing to hold some stocks or stock funds for potential asset growth may help you accumulate more savings in the long run, which can be particularly valuable if you got a late start. Though stocks carry greater short-term risk than cash and bonds, they tend to produce higher returns over the long term. Since you could spend 20 to 30 years in retirement, it's important to balance protecting your assets with giving yourself the potential for growth.

Next steps

Footnote 1 This hypothetical illustration assumes a 7.8% annual effective rate of return and was not adjusted for inflation. Had a different rate been applied, the results would have been different. Hypothetical results are for illustrative purposes only and are not meant to represent the past or future performance of any specific investment vehicle. Investment return and principal value will fluctuate, and when redeemed the investments may be worth more or less than their original cost. Taxes may be due upon withdrawal. If you take a withdrawal prior to age 59½, you may also be subject to a 10% additional tax, unless an exception applies.

Footnote 2 Employee Benefit Research Institute and Greenwald Research, "2025 Retirement Confidence Survey," April 24, 2025.

Footnote 3 This example is based on an individual who reached age 62 in 2025 (correlating to a full retirement age of 67) and whose full retirement age benefit is $1,000. Social Security Administration, "Social Security Benefits: Early or Late Retirement?” accessed April 2025.

Footnote 
Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets.
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