Kevin O'Leary Has a Blunt Message for Late Savers Who Will Depend on Social Security

Reaching your 50s with little retirement savings could make the years ahead feel a lot tighter, and Kevin O'Leary says that's the time to get serious about catching up. He has called approaching retirement without enough saved an "emergency situation" and urged late savers to be "ruthless" about cutting expenses.

If you're in your mid-50s and may end up living on just Social Security, that message could be tough to hear. But those final working years could still give you time to save more and create a little breathing room before retirement. Here's where O'Leary says to start.

Cut everything that isn't keeping the lights on

"Radically cut down on all your expenses," O'Leary has said. "Lose the car. Lose the cable. Maybe even lose the cat. You're in an emergency situation."

His examples are extreme, but the point is to free up more cash while you still have time to save. At 55, even one recurring expense you cut could create extra room in your monthly budget that could go straight toward retirement.

That might mean trading down to a cheaper car or canceling subscriptions you barely use. The less money tied up in expenses now, the more you could put to work before retirement gets any closer.

Put more of your paycheck into your 401(k)

O'Leary calls 15% of your income the "magic number" for retirement savings. If you're 55, you also get extra 401(k) contribution room that younger workers don't have.

In 2026, the regular 401(k) limit is $24,500, and workers age 50 and older could contribute an extra $8,000, bringing the total to $32,500 for the year.

You may not be able to max that out, and you don't have to. If you're currently contributing 6% of your pay, for example, bumping that up to 10% could put considerably more into retirement over the next several years. Money you free up by cutting expenses could help cover the difference in your take-home pay.

For a late saver, the goal is to use as much of that extra catch-up room as your budget comfortably allows.

Treat side income as money for your future

O'Leary has encouraged people who are behind on retirement to consider side work, and he recommends investing 15% of income from side hustles just as he does with regular paychecks.

If you're catching up in your 50s, freelance or part-time income could give your retirement savings an extra boost without requiring another cut to your regular budget.

That income could also help if working a little longer allows you to delay Social Security. As O'Leary said, "Don't retire until you could afford it. Throw out your plan for freedom at fifty-five or even sixty-five."

Even part-time work could mean fewer years of relying on your savings while giving your investments more time to grow. If it helps you wait longer to claim Social Security, you could head into retirement with a larger monthly benefit too.

How far $1,000 a month could get you by age 67

If you're 55 with $50,000 saved and could put away another $1,000 a month, the next 12 years could still add up. At a 5% annual return:

• Your monthly contributions could grow to about $197,000 by age 67.
• Your existing $50,000 could grow to roughly $91,000 over the same period.

That would put you near $288,000 by retirement, which is a big improvement from where you started, even with only 12 years to work with.

Much of the growth comes from the money you're putting in yourself, so those monthly contributions do a lot of the work. Starting late makes catching up harder, but $1,000 a month could still give you a much stronger cushion by retirement.

Why claiming Social Security too early can hurt late savers

If you retire with a smaller portfolio, Social Security may need to cover much of your monthly budget. That makes the age you claim especially important.

Say your essentials run about $2,200 a month and your benefit at 67 would be $2,000:

• Claim at 62: Your benefit could be roughly $1,400, leaving about $800 a month for your savings to cover.
• Wait until 70: Your benefit could rise to about $2,480, enough to cover those expenses with some room left over.

Waiting could give you a larger monthly check for the rest of retirement, with the savings you've already built helping cover your bills until you reach 70.

How your savings can help you wait until 70

If you retire at 67 and delay Social Security until 70, replacing the $2,000 monthly benefit you're choosing to postpone would require about $72,000 over those three years. With the roughly $288,000 portfolio from the earlier example, that's about a quarter of your savings.

You may not need to cover the entire gap from your portfolio if part-time work or consulting brings in enough income to reduce how much you withdraw.

Using savings this way would leave you with less invested at 70, but it could help you lock in a Social Security check about $480 higher each month than at 67. For a late saver who expects Social Security to cover much of the monthly budget, that extra income could reduce how much you need to pull from savings.

Bottom line

Catching up at 55 is tough, but the years before retirement could still work in your favor if you make the most of them. Saving more now and choosing your Social Security claiming age carefully could give you more room to work toward your retirement goals.

A bridge strategy may also help you wait for a larger monthly benefit without putting all the strain on your savings at once. You may be starting later than you hoped, but there's still time to put yourself in a better position for retirement.

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