15 Proven Ways to Build Wealth After 60

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.