Retirement Retirement Planning

I’m Turning 50 and Haven’t Started Saving for Retirement. Is It Too Late?

Uncover the smart strategies for late-start retirement planning.

senior business woman standing on stairs at workplace while holding smartphone in hand
Updated Sept. 24, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

You may have heard that it’s important to start saving for retirement as soon as possible to be comfortable when you’re ready to stop working.

But what if you’re 50 and still haven’t started saving for your retirement years? Don’t panic just yet. It's not too late to catch up.

So if you’re turning or over 50 and you don’t have much in retirement savings — or no retirement savings — here are some ways to add money to your savings for retirement.

Find Medicare plans with low or $0/month premium
Compare Medicare Advantage plans side-by-side to find what’s right for you
— Select a state below —


Review your current spending

InsideCreativeHouse/Adobe mature couple sitting in home kitchen reviewing bills while using laptop

Your first step is to review your current budget, which covers your expenses. If you aren’t budgeting for retirement savings, add that to the expenses.

Check your current budget for places where you may be spending too much or areas where you can save some extra cash each month. You can then use those additional funds for retirement investments or savings.

Create an estimated retirement budget

peopleimages.com/Adobe Senior couple looking at paperwork

Next, make an estimated retirement budget so you can figure out how much you’ll need to save.

An estimated retirement budget should include everyday costs like groceries and utilities and fun purchases like travel or dining out more.

On the Social Security website, you can find out how much your monthly benefit will be if you begin receiving it at various ages. 

This will help you understand how much more you’ll need to save for your monthly expenses. You can set savings goals to keep you on a retirement savings plan.

Assess your debts

opolja/Adobe senior businessman sitting at table with laptop and coffee tumbler at office

You don’t want to drag debt with you when you retire, so it’s a good idea to tackle it now and get it off your balance sheet.

Consider debts like your balance on your credit card or extra bills that are due, as well as loans for your home or car. If you decide to carry a mortgage into retirement, for example, you’ll have to account for your monthly payment in your retirement budget.

Earn $200 cash rewards bonus with this incredible card

There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.

The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.

This card also offers an intro APR of 0% for 12 months from account opening on purchases and qualifying balance transfers (then 19.74%, 24.74%, or 29.74% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.

The best part? There's no annual fee.

Click here to apply now.


Catch up on contributions

Roman/Adobe senior business man thinking while holding diary

It’s not too late to start investing your retirement money in a vehicle like a 401(k) or IRA. If you’re over 50, the government allows you to save more in your retirement accounts than the usual limit.

The IRS website explains catch-up limits for various tax-deferred retirement accounts.

Remember your home equity

Monkey Business/Adobe senior couple smiling while sitting on staircase in front of their house

Remember that you have money invested in your home if you’re paying a mortgage.

Think about how the equity in your home can factor into your retirement plans. Consider downsizing and putting the profit from selling your home into a retirement account.

You can also make improvements to your house now, allowing you to stay in it until you’re ready to sell and use the funds for a senior-living community later.

Update your insurance

Ivan Traimak/Adobe senior business woman sitting in workplace holding cup while using laptop

Insurance can be an important piece of your retirement plan if you use it properly. If you have life insurance, adjust it if your children are no longer dependent on your income. But don’t cancel it altogether if your spouse may need death benefits in the future.

Another insurance policy you may want to consider is long-term care insurance. According to the Department of Health and Human Services, adults over 65 could incur $137,800 in long-term care expenses over their lifetime.


Consider a health savings account

peopleimages.com/Adobe senior man reading label of medicine

A health savings account (HSA) may be a good investment to help you save money for health issues as you get older.

An HSA account lets you put away pre-tax money to pay for qualified medical expenses. You can use it for different medical expenses and potentially save money when you spend it by using an HSA.

Review your Social Security benefits

insta_photos/Adobe serious male lawyer sitting in office reading corporate documents in hand

Social Security can be an important part of your retirement plan, especially if you’re 50 and haven’t been saving money for retirement.

But be careful with your Social Security plans. You can start collecting it when you are 62, but that will give you the minimum benefit for your lifetime. Deferring your payments will allow you to get more money per month when you finally decide to collect.

The Social Security Administration has a quick calculator on its site to help you determine how much you would get each month based on when you begin collecting it. 

Knowing how much you can get and when will help you estimate your retirement budget and impact how long you choose to work.

Consider a side hustle

Drazen/Adobe serious female finance advisor talking to female client in office

A side hustle could be a good way to make extra money that you can set aside now specifically for your retirement.

You may want to turn a hobby into a business or pick up a few extra hours of work. That income can be put into a retirement account or other investment vehicle.

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 $12 per year with auto-renewal.

Become an AARP member now


Build an emergency fund

peopleimages.com/Adobe senior couple using laptop at home

Your budget may include everyday costs and special items when you retire, but can your budget handle an emergency?

If you don’t already have one, start an emergency fund now. You should aim to have three to six months of living expenses in that fund. Then it’s available for unexpected expenses like a home repair or health emergency.

Pro tip: Check with your bank or financial institution about a high-yield savings account for your emergency fund. This can help you earn interest on the money you have expressly set aside for emergencies.

Think about working in retirement

Robert Peak/Adobe senior woman sitting in library smiling at camera while using laptop

You don’t have to stop working just because you retired from your typical job.

Some retirees find taking on a new job to be a rewarding part of retirement. You may work a few hours at the local library or help at a local hospital. 

These positions can help you stay connected to the community while earning a little bit of cash instead of staying at home without a plan for your retirement days.

Bottom line

BullRun/Adobe business man sitting on couch using laptop while talking on cellphone

It’s never too late to prepare yourself financially for retirement, so don’t get discouraged if you’re 50 years old and haven’t started saving.

It’s a good idea to review your current and estimated retirement budgets to devise a plan for the next steps you have to take. Setting specific goals will help you prepare to retire with money saved in the bank.


Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details


Author Details

Jenny Cohen

Jenny Cohen is a freelance writer who has covered a bit of everything, from finance to sports to her favorite TV shows. Her work has been featured in The Wall Street Journal, USA Today, and FoxSports.com.