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Dave Ramsey Recommends These 8 Steps to Catch Up on Retirement in Your 40s

It's never too late to boost your savings, and these steps can get you closer to the retirement of your dreams.

By Chris Kissell

Edited by Lisa Dammeyer

Updated Feb. 7, 2026

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Workers who enter their 40s know they cannot put off planning for retirement any longer. The destination that once seemed so far in the distance is now creeping closer with each passing year.

Unfortunately, many of us enter our 40s with a minuscule amount of retirement savings. But don't give up hope. Financial guru Dave Ramsey recommends the following eight steps to catch up on retirement savings in your 40s and beyond.

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Increase your income

If you're in your 40s, it may feel like time is running out on your career. In reality, you probably have a long way to go. Workers in their 40s who have not saved enough for retirement may need to increase their income significantly to make up for lost time, Ramsey says.

That might mean finding a new job or even switching to a more lucrative career field. You could also keep your current job and find other ways to boost your income, such as through a part-time job or side hustle.

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Get rid of debt

It is difficult to build wealth when debt is weighing you down financially. Once you eliminate debt, you can supercharge your savings and set yourself up for success.

Ramsey is a major champion of the "debt snowball" method of paying off what you owe. With this approach, you pay off your smallest debt first, even if it has the lowest interest rate.

This won't save you as much money as tackling bigger debts with higher interest rates. But Ramsey believes that paying off one debt in full gives you momentum to keep going and to continue to whittle down your other debts one by one.

Max out your retirement contributions

Using retirement accounts to save for your golden years comes with many great perks. Most of these accounts allow money to grow tax-deferred. Ramsey urges people to max out their retirement contributions whenever it is possible to do so.

With Roth IRAs and Roth 401(k)s, you pay taxes in the year of your contribution, then never pay taxes on the money again. Many employers that offer 401(k) plans and similar accounts also match a percentage of the money you contribute. This can also help you build up retirement savings faster.

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Search for more ways to save

Generating more income can be challenging, so many people find it easier to simply cut costs.

For example, Ramsey recommends looking at subscriptions to magazines and streaming services and eliminating the ones you no longer use. If you never make it to the gym, cancel your membership.

Ramsey also urges you to look for other ways to save, such as searching for a better deal on car insurance or going out to restaurants less often. Reduce these costs and redirect the money you save to retirement savings.

Use your home to generate wealth

Ramsey is a big advocate of paying off your mortgage early. Once you no longer have a home loan, you will have more money to invest elsewhere.

For example, if you pay off the rest of your mortgage during your 40s, you could enter your 50s ready to dramatically increase how much you save for retirement.

That could leave you sitting pretty by the time you finally walk away from work in your 60s.

Continue to work a little longer

Let's say you are in your 40s and hopelessly behind on your retirement savings. In addition, imagine you have several kids and are looking at years of continuing to feed them and — eventually — to put them through college.

If this is your situation, you may have no choice other than to accept that you are going to have to work a bit longer before retiring.

So, keep working hard in your 40s and 50s to save what you can. But if the math still doesn't work, Ramsey urges you to make peace with the idea of working a few extra years so you can grow your nest egg.

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Talk to an investing professional

If you are panicking over how little you have saved, Ramsey suggests that it might be time to turn to a professional for help.

A good financial advisor can look over your current situation and help you draw a roadmap for reaching your retirement savings destination. This type of pro can eliminate the guesswork and force you to focus on the reality of your situation.

You are probably good at many things, but perhaps personal finance is not among them. If that's the case, a financial advisor can be a lifesaver.

Don't give up hope

Ramsey is a firm believer that it is never too late to improve your financial situation, whatever your age. As an article on the Ramsey Solutions website puts it, "You can't change the past, but you can change your future."

So, don't give up hope. However much you have saved to date, there is still time to improve your finances before retirement.

Bottom line

Dave Ramsey has long advocated that people need to take charge of both their current finances and their financial future. If you are in your 40s, now is the time to see how your retirement savings stack up.

Are you further behind on savings than you would like? Following any or all of the steps Ramsey recommends might help you catch up in a hurry.

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