Feeling behind on retirement savings is extremely common. There are still effective steps available at any age — the important thing is to start.
The Behind-on-Retirement Reality
Most Americans are not on track with retirement savings. Research consistently shows that median retirement savings for households approaching retirement are substantially below what financial guidelines suggest. If you are behind on retirement savings, you are in the company of the majority of American households — and there are still meaningful steps available to you regardless of where you are starting from.
The goal of this article is not to minimize the genuine challenge of catching up on retirement savings later in your working years. It is to be clear about what options actually exist and how to use them effectively.
Maximize Employer Matching First
If your employer offers a matching contribution to a 401(k) or similar plan, contribute enough to capture the full match before directing savings anywhere else. An employer match is an immediate 50 to 100 percent return on your contribution — no other investment option comes close to that guaranteed return.
If you are not currently capturing your full employer match, increasing your contribution to do so is the highest-priority retirement savings move available to you. This is true even if retirement feels distant or if other financial priorities feel more pressing. The compound growth of the matched amount over years makes the sacrifice worthwhile.
Catch-Up Contributions
The IRS allows workers age 50 and older to make additional “catch-up” contributions to retirement accounts above the standard annual limits. For 2025, individuals under 50 can contribute up to $23,000 to a 401(k); those 50 and older can contribute up to $30,500. For IRAs, the standard limit is $7,000, with a $1,000 catch-up for those 50 and older.
These limits increase periodically. If you are in your 50s and have available income to save, maximizing catch-up contributions during the decade before retirement can meaningfully close the gap between where you are and where you want to be.
Working Longer and Delaying Social Security
Two of the most powerful tools for catching up on retirement savings are working a few years longer than originally planned and delaying Social Security benefits. Each year of delay in Social Security after full retirement age increases the monthly benefit by approximately 8 percent. Working two additional years both adds two years of savings and subtracts two years from the period over which savings must last.
Disclosure: This site may receive compensation when you click on links or complete offers through our partners. Content is for informational purposes only and does not constitute financial advice.
