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15 Proven Ways to Build Wealth After 60

It's never too late to get ahead financially.

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Updated Oct. 22, 2024
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Once you reach your 60s, retirement is likely just around the corner. At that point, your financial future becomes a top priority.

If you are not as wealthy as you would like, don't worry: You still have time to make decisions that can help you build wealth and get ahead financially.

Whether it's through smarter saving, exploring new investment strategies, or taking on additional income opportunities, the following methods can help you build wealth after you turn 60.

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Save and invest consistently

Drazen/Adobe Insurance agent and senior couple analyzing terms of a contract in their meeting in the office of insurance company.

Even after 60, the most reliable way to lower your financial stress and build wealth is to keep saving and investing.

So, set aside a portion of your income consistently, whether it's from retirement withdrawals, Social Security checks, or part-time work. The goal is to maintain a disciplined approach to investing, even in small amounts.

Over time, compounding will continue to work its magic.

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Max out your retirement accounts

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If you are still working, take full advantage of retirement accounts by maximizing contributions.

Whether it's a 401(k), 403(b), or IRA, these accounts offer tax advantages that can accelerate your savings.

In addition, people who are 50 or older are eligible to make “catch-up contributions” that can accelerate their savings efforts. More on that in the next slide.

Take advantage of retirement 'catch-up' contributions

Kay Abrahams/peopleimages.com/Adobe financial advisor consultation

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

These additional contributions let you save more than the standard annual limit, giving you a chance to boost retirement savings at a critical time.

In 2024, the catch-up contribution for a 401(k) is an extra $7,500. For an IRA, it’s an additional $1,000.

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Buy rental real estate

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If you are looking for passive-income opportunities, buying rental real estate can provide a reliable stream of money well into your retirement years.

Real estate also has the potential to appreciate over time, which can further enhance your wealth-building strategy. Rental properties can generate consistent cash flow, especially in retirement when you are looking to supplement your income.

Invest raises and bonuses

Andrey Popov/Adobe Businessman Opening Envelope With Paycheck

If you are still employed, it’s tempting to spend extra income from raises or bonuses.

However, investing these windfalls instead of splurging on unnecessary items can significantly accelerate your wealth-building efforts. Directing extra funds into investments allows them to grow and compound over time.

Delay taking Social Security

larryhw/Adobe retirement concept social security benefits

The longer you wait to start receiving Social Security benefits — up to the age of 70 — the larger your benefit will be each month.

This decision can make a substantial difference in how much income you receive on a monthly basis.

Live within your means

shurkin_son/Adobe  charming retired sisters cooking lunch together

One of the simplest but most effective wealth-building strategies is to live below your means.

By cutting back on unnecessary expenses and sticking to a budget, you can free up money to invest and save. This helps prevent debt accumulation and ensures that your wealth continues to grow.

Avoid borrowing from a 401(k)

piter2121/Adobe 401k Plan with calculator pen and glasses

While it may be tempting to borrow from your 401(k) for short-term financial needs, doing so can severely impact long-term retirement savings efforts.

By moving money out of the account, you rob it of the ability to grow and compound. Many experts suggest that it’s better to leave these funds where they are and seek other ways to cover short-term financial needs.

Look for ways to minimize taxes

Pcess609/Adobe Man filling income tax forms

Taxes can take a significant chunk out of your income and investment gains. So, look into tax-efficient investment strategies.

For example, if you are still working, consider investing in tax-advantaged accounts such as 401(k)s or IRAs.

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.

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  • Go here, select your free gift, and click “Join Today” 
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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.

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Build an emergency fund

witsarut/Adobe saving emergency money

Having a well-stocked emergency fund is critical for financial security at any age, but it's especially important in retirement.

Unforeseen expenses can derail your finances if you are not prepared for them. Aim to have at least six months' worth of living expenses in an easily accessible account. This fund will give you peace of mind while allowing you to stay out of debt.

Keep investment fees low

sophon/Adobe Businessmen and investors and work

Investment fees can eat away at returns over time. If you are investing in mutual funds or have hired a financial advisor, it's essential to understand how much you pay in fees.

Opting for low-cost index funds or exchange-traded funds (ETFs) is one way to reduce such fees, for example.

Work a full-time job longer

Maria Vitkovska/Adobe senior business woman working on laptop

If you are able to continue working, staying in the workforce a bit longer can help boost your retirement savings and allow you to delay tapping into them.

The extra income can be used to pad savings, and the additional working years can also improve your Social Security benefits when you eventually claim them.

Understand fees

Phushutter/Adobe Calculator on business working desk

When you invest, it's crucial to know how much you pay in fees, whether it's through investment costs or in paying a financial advisor.

High fees can significantly reduce returns over time. Opt for low-cost investment options to keep more of your money working for you.

Use your Medicare benefits to save money on health care costs

pikselstock/Adobe nurse supporting an elderly lady

Health care costs can quickly drain your savings in retirement. Understanding and maximizing your Medicare benefits can help you avoid unnecessary expenses.

Medicare offers benefits that many people overlook. So, make sure you understand your plan and what it offers so you can take full advantage of these perks.

Take on a side hustle or part-time job

Mediteraneo/Adobe elderly woman in a flower shop

Even if you are retired from your main career, taking on a part-time job or side hustle can help you make extra money.

Whether it's consulting, freelance work, or starting a small business, this extra income can provide a financial cushion and help you build wealth well into your retirement years.

Bottom line

lordn/Adobe senior couple sitting on the bench looking at tablet computer

Building wealth after 60 seems challenging. But with the right strategies, it’s possible to supplement your income and grow your financial assets.

Whether it’s delaying Social Security or taking on a side hustle, make money moves that will help you to build wealth and get ahead.

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Author Details

Adam Palasciano

Adam Palasciano is a personal finance-obsessed and money-savvy individual who loves to hash out content on all things saving money. He specializes in writing millennial-friendly personal finance content, covering topics ranging from trending financial news, debt, credit cards, cryptocurrency, and more.