Retirement Retirement Planning

15 Retirement Savings Roadblocks You May Hit in Your 50s

Saving for your golden years isn’t always easy, especially if you run into these obstacles.

By Sarah Sharkey

Edited by Chris Kissell

Updated Jan. 18, 2025

As you glide into your 50s, retirement is just around the corner. With the traditional retirement age of 65 on the horizon, you might feel the pressure to supercharge your retirement savings.

Saving more money is always a great idea. Unfortunately, it’s possible to run into some obstacles just as you plan to accelerate your retirement savings journey.

Knowing about these potential obstacles might help you avoid them. Here are some common roadblocks those in their 50s face when saving for retirement.

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Carrying too much debt

If you have debt — especially high-interest credit card debt — it acts like a drain on your finances.

Carrying around debt can easily derail retirement savers from reaching their goals. If possible, make paying off any high-interest debt a priority.

Once you get out of debt, focus on funding your nest egg.

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Suddenly taking on too much risk

As you get closer to retirement, you might feel pressured to take more chances with your investments. Many retirement savers who want to maximize their potential investment growth take on too much risk within their investment portfolio.

Unfortunately, all investing comes with risk. If you take too much risk and the market tanks, you could end up with less money than you need for retirement.

Not taking enough risk

On the other end of the spectrum, some savers in their 50s feel the need to remove virtually all risk from their investment portfolio. Generally, this inclination leads to selling investments and holding profits in a savings account or CD.

Doing this can mean missing out on potential growth. In addition, the low returns cash generates might not be enough to keep up with inflation.

The right level of risk varies based on your goals. But, generally, you don’t want to swing the pendulum too far in either direction between calculated risk and complete safety.

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Feeling the squeeze as part of the 'sandwich generation'

If you are taking care of young children and older parents, you are squarely in the “sandwich generation.”

With more caregiving duties, you might be forced to cut back on working hours or even to leave the workforce. Either path makes it more challenging to save for retirement.

When possible, keep saving at least some money for retirement. Although you might have to reduce your contributions for a time, putting some money aside for retirement with each paycheck will add up.

As you navigate caregiving and employment, find out if your employer offers any resources to help you during this challenging time.

Working for a company that doesn't offer a 401(k)

Lack of access to a tax-advantaged retirement savings account such as a 401(k) can pose a problem. The good news is you can opt to open other types of tax-advantaged retirement savings accounts, such as a traditional IRA or Roth IRA.

And if you’re self-employed, a solo 401(k) or SEP IRA might be a good option.

Regardless of which retirement accounts you have access to, it’s critical to continue to make contributions to grow your retirement savings.

Failing to take advantage of catch-up contributions

When you hit age 50, the IRS allows you to make catch-up contributions to your retirement accounts.

For example, savers who are 50 or older can contribute an additional $1,000 to their IRA and an additional $7,500 to their 401(k) in 2025.

In addition, those who are between the ages of 60 and 63 can make a catch-up contribution of $11,250.

Don’t hesitate to bump up your contributions when you have the opportunity.

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Inflating your lifestyle

Lifestyle inflation involves increasing your spending and standard of living. If you are in your 50s, it’s likely your income is higher, which makes it especially tempting to inflate your lifestyle.

But before you spring for a new vehicle or upgrade to a larger home, know that buying nicer things might mean you sacrifice saving for retirement in favor of more spending right now. That can set you up for a financially unstable retirement.

Getting stuck with high housing costs

Housing costs are a big-ticket item in most people’s budgets, including savers who want to build a retirement nest egg. If you have a high housing payment, finding the bandwidth to increase your retirement savings can be a challenge.

Those with high housing costs should take some time to carefully weigh options. Perhaps you can downsize to a smaller place with lower costs. Multi-generational living situations can be another viable option for some.

Taking intentional steps to lower housing costs can help you increase retirement savings.

Waiting too long to get the right insurance

The right insurance can make all the difference to your retirement savings plans.

For example, a long-term care insurance policy can help you pay for assisted-living situations should your health deteriorate.

Instead of waiting to buy this coverage later — when it is likely to be more expensive — baking it into your budget now can set you up for success. If possible, buy the right coverage while you are still in your 50s.

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Not having money for emergencies

If you don’t have cash on hand to cover emergencies, you might find yourself skimping on retirement savings or even dipping into your existing retirement savings to cover the cost.

While this might solve the short-term problem, it could derail your long-term retirement planning goals.

As you save for retirement, don’t neglect to build up an emergency fund designed to cover whatever life throws your way. For example, this fund might help pay for expensive car repairs, an unexpected medical bill, or other surprise costs.

Being overwhelmed by college costs

Many parents want to help their children pay for college. But the reality is that sky-high college costs can put a burden on anyone’s budget.

Although helping your kids pay for college might be your goal, it’s important to prioritize saving for your own financial future first. Otherwise, you could run out of money in your golden years and end up leaning on your kids to support you later.

Divorcing — and watching wealth plummet

Generally, divorce takes a big toll on your finances. A divorce can essentially slash your wealth in half.

It can be difficult to recover from such a financial setback in your 50s. If you find yourself in this situation, don’t try to maintain your previous lifestyle. Instead, rein in your spending to match your new circumstances.

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Financially supporting adult kids

In America, many parents help to support their adult children financially. Whether you let them live at home rent-free or pay for some of their lifestyle expenses, the costs can add up quickly.

Take stock of your financial situation and decide whether or not you can truly afford to continue supporting your adult children. If not, it’s time to have some frank discussions about the state of your finances so you can set up a plan to get your kids off the payroll.

Struggling to afford health care costs

A medical emergency or chronic illness can come with significant medical bills. Even if you saved for retirement, an unlucky health situation could derail your financial security in retirement.

One way to mitigate this risk is to save in a health savings account (HSA) while you are working so you can use the money to cover future health care costs during retirement.

Falling victim to stock market fears

Investing in the stock market can be a bumpy affair. For those who monitor stock prices, the rising and falling tides of the market can feel like a rollercoaster ride.

When your retirement savings are invested in the market, it can be tempting to cash out after the market drops. But doing so can lock in your losses and prevent you from participating in stock market rebounds.

If possible, tune out at least some of the headlines about the stock market so you avoid making fear-based investment decisions.

Running out of time

When you hit your 50s, you might realize that you haven’t saved enough for retirement. While you can’t make up for the time you lost, you can make saving for retirement a top priority going forward.

Instead of feeling defeated, take this opportunity to turn your financial situation around. You might even consider taking a part-time job or developing a side hustle so you can earn extra money.

Bottom line

It’s normal to run into challenges as you prepare for retirement. But don’t let these obstacles stop your momentum.

Instead, make a plan to keep saving and build a big nest egg for your golden years.

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Author Details

Sarah Sharkey

Sarah Sharkey is a personal finance writer who enjoys diving into the details to help readers make more informed decisions. She covers mortgages, insurance, money management, travel, and more.