8 Ways to Catch Up on Retirement Savings

In a perfect world, you might have started saving for retirement when you were much younger. But if you’ve waited—or are just recently getting serious about saving—you may worry that you’ll never catch up.

After all, everything you hear is about the power of saving early. And while it’s true that saving earlier can have a big impact, it’s also never too late to start prioritizing saving for retirement.

With that in mind, let’s look at some simple ways to maximize your savings so that you can feel better about your retirement.

1. Maximize your company match

Saving for retirement on your own can feel like a long process. But you can accelerate what you’re putting away with help from a second contributor—your employer.

Many businesses offer their workers a 401(k) matching program. When you save for retirement through your company’s 401(k) plan, it will match your contributions up to a certain amount. For instance, let’s say you make $100,000, and your employer matches dollar for dollar up to 6 percent of your salary. If you contribute $6,000 a year, your employer will put in another $6,000, netting you $12,000 in savings. It’s essentially free money! If you can, contribute enough from each paycheck to grab the full match from your employer.

2. Let Uncle Sam help you out

If your company does offer to match a percentage of your contributions, make sure you sign up for it. Doing so means you’ll also be getting help with your savings from the IRS, as 401(k) plans and IRAs get favorable tax treatment. With the traditional version of these accounts, you don’t pay any federal tax on contributions today; in fact, you won’t pay any tax on the money you contribute until you withdraw it in retirement. Since these accounts are meant to encourage retirement saving, you will be subject to a 10 percent penalty in addition to ordinary income tax if funds are withdrawn before age 59½. On the plus side, money you leave in the account will grow tax-deferred until you withdraw it in retirement.

You could alternatively opt for the Roth version of these accounts. With a Roth, you contribute money that has already been taxed, but in general, you will never owe tax again so long as you take qualified distributions. Roth accounts also compound interest tax-free. Many investors have a mix of these types of accounts.

When you’re ready to contribute even more money, you’ll be able to contribute up to limits set by the IRS. For 2025, you can contribute up to $23,500 to your 401(k) plan if you’re under 50 and up to $31,000 if you’re 50 or older. If you’re aged 60, 61, 62 or 63, you’re able to contribute up to a higher limit: $11,250. If you have an IRA (or Roth IRA), you’re allowed a $7,000 contribution up to age 50 and an $8,000 contribution annually if you’re older.

3. Try the 1 percent trick

If you’re not saving at all or saving only a small percentage of your salary, upping your contribution to 10 or 15 percent of your salary tomorrow can seem daunting. But more gradually upping your contribution to that level can help you adjust to a habit of saving.

After contributing enough to get your full company match, try increasing your contribution a little bit every quarter. Pretty soon, you’ll be saving a lot more. But because the amount you save each month is going up slowly, you may barely notice.

4. Take advantage of a health savings account

IRAs and 401(k) plans both have one thing in common: At some point—either when you earn it or when you withdraw it—you have to pay taxes on your contributions and sometimes on your gains. And that can eat away at your savings. But a Health Savings Account (HSA) offers a triple tax benefit seen nowhere else.

With an HSA, you’re free to max out contributions that are deductible from federal income (state deductibility will vary by state), invest that money with no tax on your earnings, and withdraw funds tax-free for qualified medical expenses. And that pot of money is sure to be of use, since the average retiree’s medical costs are estimated to be $165,000.

Check to see whether your employer offers a high-deductible health plan with an HSA to which you can contribute. If you’re already using one, consider bumping up your contributions and ensuring that the funds you’re not using now are being invested automatically for the future. In 2025, the annual HSA contribution limit for individuals with self-only coverage is $4,300; the limit for those with family coverage is $8,550.

5. Make your money work for you

Compound interest is the reason you always hear people talk about saving early. That’s because it magnifies over time. But that doesn’t mean you can’t take advantage of it over shorter periods as well. Make sure you’re letting your money continue to grow.

If you’re closer to retirement, you might feel like you need to be more conservative with your investments. This is usually true. But don’t shun the stock market entirely, even if it means you have to ride out a downturn or two. The value of remaining invested, even over a decade or so, is that you’ll likely see your money grow faster than you would with a more conservative approach.

You could also supplement your financial plan with products like whole life insurance, which grows cash (or accumulated) value on a tax-favored basis and could be considered a stable asset not correlated directly to the market.

6. Know the benefits of delaying retirement

The more years you spend in the workforce, the more you’re saving each month. And the more you save each month, the more that money is compounding interest and giving you more to work with in retirement. And that’s just your savings.

Depending on when you claim your Social Security, your monthly benefit will grow or be reduced. You can claim Social Security as early as 62. But if you can wait until your full retirement age (sometime between ages 66 and 67), you will get your full benefit. Then your benefit increases 8 percent for every year you wait after your full retirement age up to age 70.

7. Prepare for common risks to your retirement

It’s one thing to save for retirement. But planning for retirement means preparing for common retirement risks—and that can impact how you save. These include things like market volatility, taxes, inflation, how long you live, health care and more. Typically, a financial plan that uses a range of options that reinforce each other can help position you to handle these risks should they arise.

8. Work with a pro

Saving for retirement can be a confusing process. How much do you really need? Are you on target? Does your portfolio match your goals and risk tolerance?

Your financial advisor can help you see your financial big picture. They’ll get to know you and what’s important to you. From there, they’ll help you build a financial plan that balances what you want today with your plans for the future. They can help you uncover blind spots (like taxes) and uncover opportunities. And, if you’re playing catch-up, that expertise may be just what you need to sidestep obstacles and make your retirement dreams a reality.

Past performance is no guarantee of future performance. No investment strategy can guarantee a profit or protect against loss (including loss of principal). Although stocks have historically outperformed bonds, they also have historically been more volatile. Investors should carefully consider their ability to invest during volatile periods in the market.