Saving for retirement can feel like pushing a boulder up a steep hill, and this struggle becomes more evident as retirement years loom closer.
Now, a new story from USA Today highlights just how real that struggle is. Many Americans (particularly Gen-Xers) are working well past the traditional retirement age due to inadequate savings and high costs of living.
With the decline of pensions and the uncertainty of Social Security, retirement is becoming an unattainable luxury for many. Research shows that only 10% of Americans between 62 and 70 are financially stable in retirement.
Despite the country's challenges, there are a few steps you can take if you have nothing saved for retirement. Whether you've been out of work, lacked access to a retirement plan, or just need to catch up, here are 12 steps to help you boost your savings and secure your future.
Get a snapshot of your current money picture
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Life can come at you fast, and that means that it may be hard to see how much money you really have at any time.
Set aside real time on your calendar every week to review how much is coming into your household and how much is going out. What's coming up next in terms of expenses?
Sometimes an emergency can be avoided by taking care of maintenance before problems get worse.
Tighten up your budget
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While you absolutely can treat yourself to a night out on the town, you might be surprised at how quickly it can add up over the course of a week, month, or year.
If a night out at your favorite restaurant is $50, five nights out a month is $250 that could be redirected to your retirement account.
Mow down high-interest debt
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If you have nothing saved for retirement, chances are good that you may have some high-interest debts clogging up the retirement pipes.
According to the Consumer Financial Protection Bureau's latest survey, Americans paid over $120 billion in credit card interest and fees per year between 2018 and 2020. Ouch.
You might know the monthly payments for all your credit cards, but do you know their interest rates? Take some time to check the interest rates on your credit cards. Then start looking for creative ways to crush your debt once and for all.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $15 the first year with auto-renewal.
Don't overlook bonuses
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A bonus from work feels like an invitation to finally move those fun items out of your "save for later" Amazon list. But since the bonus is essentially money you don't have yet, you can't miss it if you move it to retirement.
Whether it's an end-of-year bonus or one that pops up every quarter, send it to your retirement account so it can grow over time.
Check benefits at work
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If your employer is willing to match your retirement contributions, that's the best free money you could ask for.
Not sure what your benefits are? Your job most likely has an HR portal where you can review company-wide benefits, including retirement matching. They most likely won't match all your contributions, but every penny helps.
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Put promotions to work for your retirement
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Promotions often come with a bump in pay, which is another form of unexpected money. For once, the plot twist is on your side.
You can move extra money into your retirement account without changing your quality of life. If you want to pinch a little bit more, you can do so without making it hurt too badly in the long run.
Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why
Use round-up apps to boost savings
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Apps like Acorns, Guac, Digit, and Betterment all have one thing in common: They capture money that would otherwise be lost to just shopping. If you're going to swipe your debit card, you might as well swipe your debit card with purpose.
While the money still has to take a few hops to make it into your retirement account, these round-up apps still help you add to savings where you otherwise would just spend the money.
Pro tip: Check out this list of the best investment apps to start building your savings with roundups.
Let family help max out retirement accounts
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Did you know that you can take monetary gifts and apply them to your Roth IRA (granted, you still need to meet the usual requirements)? Sure, not everyone has family willing to help, but if your family wants to pitch in, it doesn't hurt to ask.
For some people, having intimate conversations about money with family members can feel awkward. But it's better to risk a few moments of awkwardness instead of sitting up at night worrying about your retirement.
Lean into a side hustle
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If you're looking at putting money into retirement, you may have to take on a part-time job or side work to find the money for your 401(k) funding. That could look like Uber, DoorDash, or any of these legitimate ways to make extra cash.
Let yourself imagine how you can help other people, and you may find that you can put the money you earn on the side into retirement.
In 2023 Americans lost over $10 billion to identity theft and fraud
That's right. According to the FTC, Americans lost over $10 Billion to fraud and identity theft in 2023.
But you can safeguard your data with all-in-one identity theft protection services from Aura which comes with $1,000,000.00 in identity theft insurance1 <p>Identity Theft Insurance underwritten by insurance company subsidiaries or affiliates of American International Group‚ Inc. The description herein is a summary and intended for informational purposes only and does not include all terms‚ conditions and exclusions of the policies described. Please refer to the actual policies for terms‚ conditions‚ and exclusions of coverage. Coverage may not be available in all jurisdictions.</p> per adult, to cover you should you have eligible identity theft-related losses.
An individual plan starts at $9 per month, and you can choose a family plan that outmatches most others - includes Dark Web monitoring to scour data breaches and leaks for your sensitive personal data — such as Social Security numbers (SSN), Medicare information, and phone numbers.
Before you make your next online purchase, protect what you’ve built for a fraction of what it could cost you if your data were compromised.
Let the robots make retirement easier
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Automating your savings and retirement helps ensure that your money is going to work for you first, with spending to come later. You can set up automated contributions to retirement if you have a 401(k) at work, but you may also be able to set them up with an IRA.
Open an IRA
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It is possible to contribute to both an IRA and a 401(k). The IRS allows taxpayers to utilize both retirement accounts, although there are rules to follow. There is a difference between being able to contribute and being able to deduct those contributions on your tax return.
Be aggressive with your portfolio
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A common mistake many 40- and 50-year-olds make when they're trying to catch up with their retirement savings is playing it too safe. Conservative portfolios focus on preserving money when the focus has to remain on growing the money in the first place.
An ideal portfolio prioritizes growth, and that means stocks. Bonds are good for preserving money, but stocks bring the best returns.
Bottom line
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It's natural to feel frustration, guilt, and sadness if you haven't saved anything for retirement. But if you focus on what you can control, you'll find that you have more options than you thought and eliminate your money worries.
Get creative. Start seeing your world in both what you make and what you can save. The more you begin looking for solutions for retirement, the more money will flow your way.
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- Earn up to 4.50% APY2 <p>LevelUp Rate of 4.50% Annual Percentage Yield (“APY”) is applied to the full balance of LevelUp Savings accounts that receive a total of at least $250 in deposits during the Evaluation Period. Otherwise, accounts will earn the Standard Rate of 3.75% APY. Interest payments, account bonuses, account credits and reversals or refunds from the bank are not considered deposits for rate evaluation purposes. All LevelUp Savings accounts earn the LevelUp Rate at account opening and continue to earn the LevelUp Rate until the First Evaluation Period, to provide an opportunity to set up deposits. </p> <p>An Evaluation Period is a statement cycle. The First Evaluation Period will be the third statement cycle after you open your account, with any rate change becoming effective the next statement cycle. For example, if you open in August, the first Evaluation Period would be October with any rate change effective in November. Any rate changes will take place on the second business day and will be based on deposits in the previous statement cycle. </p> <p>APY accurate as of 2/12/2025. Rates are variable and subject to change at any time without notice, at the sole discretion of the bank. Fees may reduce earnings. $0 minimum opening deposit.</p> with LendingClub’s LevelUp Savings when you deposit $250+ per month. Member FDIC.
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FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment. Our partners do not influence our ratings.
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