It’s Not Too Late: Catching Up on Retirement in Your 50s

If you’re in your 50s with less saved than you hoped, you still have real options. That might not be what the headlines suggest. Many articles about retirement focus on starting in your 20s and letting decades of compounding do the work. That’s great advice for a 25-year-old, but it isn’t much help if you’re 54 and just now looking hard at your accounts. The good news is that your 50s come with some distinct advantages, and a focused plan can make a meaningful difference. Here are practical moves for a late start.

There are many reasons people reach their 50s behind on retirement savings: raising children, caring for parents, a divorce, a layoff, a business that didn’t work out or simply years when there was nothing left over. None of that is a reason for shame. What matters now is what you do next.

Take an honest inventory

Before you can build a plan, you need a clear picture of where you stand. Gather statements for every retirement account, including old workplace plans from past jobs, IRAs, any pension you may be entitled to and regular savings. Add up the total.