13 Ways To Boost Your Savings After Your Peak Earning Years

Life doesn’t always go according to plan. You may find yourself playing catch-up on retirement savings in your 50s or 60s rather than making an immediate plan to spend your golden years on the beach.

But just because you’re behind on building wealth doesn’t mean you can’t catch up. Even if you’re past your peak earning age, here are 13 savings tips to get you back on track.

It seems simple, but sometimes the only way to save more money is to cut spending. Look at your spending and see if there’s anywhere you can pull back. 

Do you still need to spend the same on clothing in your current role as you did at the peak of your career? Could you pick up cooking at home as a retirement hobby?

If you’re fortunate enough to have an employer 401(k) match, you should fill it out to the maximum amount to meet that match. 

Every dollar you (and your employer) put in there will have the opportunity to grow, even if it’s for a shorter amount of time than you’d initially hoped.

The government wants to reward you for saving for retirement, particularly if you have a middle- or low-income. Based on your retirement contributions, you could be eligible for the Saver’s Credit, a tax credit worth up to $1,000.

With some rates over 5.00%, a CD is a smart way to stretch your retirement savings without tying them up in the stock market. 

You can put cash in a CD and access it at the end of the term while also taking advantage of an interest rate that’s better than a standard savings account. Consider a CD ladder to add flexibility to your savings.

The most important part of saving is remembering to do it. If you’re past your peak earning years, don’t find yourself wondering where your planned savings went at the end of every month. 

Instead, automate that amount directly from your paycheck so you don’t have a chance to spend it.

While there are some income limits on Roth IRAs, you may be eligible, particularly if you’re past your peak earning years. 

You can save up to $7,000 annually in a Roth IRA, which is post-tax savings that grow tax-free. If you’re over 50 years old, you can contribute an additional $1,000 annually.

When you’re past your peak earning years, you want to maximize every dollar. If you’re paying 1% in investment fees, you could be losing a significant chunk of change every year.

You can’t afford to leave cash sitting in your regular checking account if you’re trying to save extra for retirement. Consider transferring your cash to a top high-yield savings account to take advantage of high interest rates.

Deductions can save you a lot of money if you know how to leverage them, so don’t automatically assume a standard deduction is the way to go. 

Even if you earn less than in past years, you may have deductions, like business expenses, charitable giving, or mortgage interest — and those add up.

Whether you have children who have moved out or simply have less inclination to take care of a few thousand square feet, downsizing your residence is one of the easiest ways to make a major impact on your retirement savings, regardless of income. 

Plus, you’ll save money on utilities when there’s less space to heat, cool, and light.

If you have an extra room or two in your home, consider renting it out to a long-term or short-term renter. 

This can bring in extra income that will help you continue to grow your retirement savings and make you feel more comfortable even when your W2 earnings have decreased.

Barring a shorter life expectancy, the longer you delay your Social Security payments, the better. Once you reach full retirement age, continue delaying your payments, and you’ll receive delayed retirement credits (up until age 70), increasing your eventual benefit.

A side hustle can not only add to your pre-retirement income but also give you a part-time source of income to continue into retirement. It could be a hobby you’ve turned into a business, or you could join the gig economy to make extra money.

Perhaps the most obvious way to continue saving for retirement when you’re past your peak earning age is to continue working and postpone your retirement date.

If you still feel healthy and able, squeezing a few more years out of your working years can make a big difference in saving for retirement. Plus, you have decades of expertise to offer the workforce and your younger colleagues.