Once you celebrate your 50th birthday, it might feel like the clock has begun to tick faster. But in terms of building a nest egg, you still have a lot of runway left.
In fact, there are some smart money moves for seniors that are not always available to younger savers. Tapping the following strategies can help you build wealth faster after 50.
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401(k) catch-up contributions
Turning 50 opens the door to larger 401(k) contributions. In addition to the standard limit — which is $23,500 in 2025 — workers who are 50 or older can make an extra catch-up contribution of $7,500 to their 401(k).
Even better, those who are between the ages of 60 and 63 can contribute an extra $11,250 in 2025. Catch-up contributions allow you to build up a bigger nest egg quickly.
IRA catch-up contributions
The annual contribution limit for both traditional and Roth IRAs is also higher for those who are 50 or older.
The standard IRA contribution limit in 2025 is $7,000, but those who are at least 50 also make an extra $1,000 in catch-up contributions.
HSA catch-up contributions
Health savings accounts (HSAs) can help you cover medical costs. In 2025, the contribution limit is $4,300 for self-only coverage and $8,550 for family coverage.
However, those who are 55 and older can contribute an extra $1,000 in catch-up contributions. This allows you to take greater advantage of an HSA's triple tax benefits: Contributions are tax-deductible, and both growth and withdrawals for qualified medical expenses are untaxed.
Resolve $10,000 or more of your debt
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1 <p>Clients who are able to stay with the program and get all their debt settled realize approximate savings of 46% before fees, or 25% including our fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.</p>
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Higher job earnings
Many people also begin to earn more in their 50s, thanks to decades of experience and climbing the corporate ladder. These larger paychecks can help you supercharge retirement savings.
If you're still working, this is a key time to take full advantage of employer benefits and maximize your retirement contributions. Use your years of experience to make big moves in your retirement plan.
Higher standard deduction at 65
Once you reach 65, the IRS allows you to take an additional standard deduction on top of the base deduction. In 2025, this allows you to deduct an additional $2,000 if you are a single filer and $1,600 per qualifying spouse if you are a joint filer.
There is also the potential for another boost with the new House tax proposal, which would add a temporary $4,000 boost for seniors through 2028.
Qualified charitable distribution at age 70.5
At the age of 73, you'll be required to start withdrawing money from some types of retirement accounts, such as traditional IRAs and 401(k) plans. These are known as required minimum distributions (RMDs), and you will owe taxes on them.
However, there is a way to get around paying this tax. Beginning at the age of 70.5, you can make a qualified charitable distribution (QCD) from your IRA that lets you give up to $108,000 directly to charity tax-free.
QCDs also count toward satisfying your RMD, reducing your taxable income while supporting causes you care about. This can be a great move for charitable-minded retirees.
Reverse mortgage
A reverse mortgage lets homeowners who are 62 or older convert their home equity into cash without selling or moving. This can provide an extra cushion during retirement, especially if you want to delay withdrawals from other accounts.
However, this strategy involves trade-offs, such as paying higher fees and potentially leaving a smaller estate to heirs. It's important to do your research and ensure this option fits with your long-term financial plan.
Delaying Social Security
You can claim Social Security as early as 62, but doing so permanently reduces the size of your monthly benefit.
Waiting until full retirement age — which is now 67 for most folks — increases the size of your benefit. And you can get an even larger monthly check for each year you delay up to age 70.
Roth IRA conversions
Converting funds in a traditional IRA to a Roth IRA after you turn 50 can be a smart way to manage future taxes. While you'll owe income tax on the converted amount during the year of conversion, future withdrawals from the Roth will be tax-free.
If you are 50 or older and retire early, your income may be low enough that converting a little bit year by year makes sense.
Taxes can be a huge expense in retirement, so converting might reduce the burden during your lower-income senior years. But it might be best to discuss your plans with a financial advisor first.
Earn cash back on everyday purchases with a debit card
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Downsizing your living expenses
Selling a larger home and moving into a smaller space can reduce your expenses and free up equity. Downsizing can reduce utility costs and potentially lower property taxes.
Moving to a cheaper community during retirement is another way to potentially lower your costs.
Bottom line
Turning 50 doesn't mean that it's too late to build wealth. Instead, getting older can actually open the door to new financial opportunities.
Use these unique chances to strengthen your retirement plan in the years leading up to retirement. Now is the time to check up on your retirement readiness and take advantage of these savings options for seniors.
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