11 Smartest Ways to Save Money If You're In Your 60s

Reaching your 60s can mean that freedom from the daily grind is just around the corner. However, workers in this age group also face sobering financial realities.

Many people find themselves playing catch-up in their efforts to save at a time when every dollar counts a little more. The good news? With the following smart strategies, you can still get ahead financially.

If you're behind on savings, working a little longer gives you time to turn things around.

Even just an extra year or two on the job might give your money more time to grow. It also shortens the number of years you'll need to rely on your nest egg.

Another benefit of working longer is that it might allow you to keep your health insurance through work. That can take a costly expense out of your budget.

It's hard to get ahead if a chunk of your income goes straight to credit card bills. So, try to crush your debt, particularly if it has a high interest rate. This is often the case with credit cards or personal loans.

Reducing or eliminating debt can boost your monthly cash flow. And once you're in the clear, it's important to stay there. Setting a budget you can stick to makes it easier to avoid slipping back into overspending.

Turning 60 now comes with a big perk if you are saving for retirement. Starting in 2025, you're allowed to put more money into your 401(k) than you would if you were younger.

In 2025, people ages 60 to 63 can contribute up to $11,250 in catch-up contributions if their plan allows it. This is better than the $7,500 catch-up contribution that is allowed for all other workers who are 50 or older.

If you're still working, maxing out those extra contributions could be one of the fastest ways to bulk up your savings.

Finding a way to earn extra income could help you quickly pad your savings.

Perhaps you could take on part-time work or a side hustle in addition to your full-time job. Or, if you only need a modest boost to savings, maybe you could drop the full-time job and work part-time in semi-retirement.

Options for making more money include tutoring, walking dogs, or taking on some other job you might enjoy. The money can go toward savings or paying bills. Plus, many people find that staying active and connected through work is good for their mental well-being.

If the kids are out of the house and you are paying to heat or cool empty rooms, it might be time to rethink your space.

Moving to a smaller home can lower your monthly bills and free up cash. Downsizing is not just a money move: It can also be a lifestyle shift that helps you focus on what really matters in the next chapter of your life.

Contributing to a health savings account (HSA) offers a way to save for health expenses that you might incur later in retirement.

HSAs offer tax benefits if you use the money to pay for qualified health expenses. Those who are 55 and older can make an extra catch-up contribution to an HSA of $1,000 each year. So, your 60s are a great time to continue to fund an HSA.

Just remember that you need to be enrolled in a high-deductible health insurance plan to be eligible to contribute to an HSA. Also, once you enroll in Medicare, you cannot make new contributions to an HSA, although you can still make withdrawals from the account.

Look for senior discounts at stores and price breaks for older folks on other expenses, ranging from travel to dining out.

Keep a list or app handy so you don't miss opportunities to spend less on everyday purchases. While these discounts are often small, they can add up if you use them regularly.

Paying off your mortgage early can bring you some peace of mind, especially if you expect your income to dip in retirement. Owning your home free and clear can significantly reduce monthly expenses.

However, it is important to balance paying off the mortgage with keeping enough money in liquid savings and investments.

In a sense, all the things that are in your home today were once money. Had you not spent the cash to buy those items, your savings would be in better shape.

You can't turn back the clock, but you can do the next best thing by letting go of unused stuff and selling it.

Selling items you no longer need can add some cash to your savings and help you focus on what really matters. Once you have put that cash into your pocket, make a commitment to avoid accumulating more stuff in the future.

If your savings are low, withdrawing too much from accounts too quickly will only make a bad situation worse.

Instead, try to avoid tapping into these funds so they can continue to grow. This approach may help your savings last longer, giving you more financial flexibility as you settle into retirement.

You don't have to completely miss out on the fun, but cutting back on entertainment expenses can make it a bit easier to manage your budget.

Look for low-cost or free activities, such as going to local parks or participating in hobbies you enjoy. Small changes in where you look for fun can greatly reduce your expenses while keeping your life active and social.

Catching up on retirement savings in your 60s can be challenging, but it isn't impossible. By doing things like delaying retirement or maximizing 401(k) catch-up contributions, you can better prepare for retirement.

Many experts recommend saving 10% to 15% of your annual pretax income for retirement each year. If you weren't meeting that benchmark in the past, your 60s offer the perfect opportunity to start making up for lost time.