How-to The Overlooked Way People Over 50 Can Boost Their Retirement Savings

When you hit 50, it’s natural to start thinking more seriously about retirement — and whether you’ve saved enough. According to the investment firm Fidelity, Americans should have around six times their annual income saved by age 50. So if you’re earning $70,000 a year, that means your retirement account (like a 401(k) or IRA) should ideally have $420,000 or more.

If you’re not there yet, don’t panic. There’s still time to catch up — and more ways than you might think to do it.

Start with a better budget​

If you’re behind on your savings goals, one of the first things to do is look at your spending habits. By adjusting your budget, cutting back on non-essential expenses, and being more intentional with your money, you can start saving more each month. Many people also find it helpful to use a top-rated budgeting app to track their income and expenses.

And if you’re already budgeting? Great! You can also look into increasing your income — whether that means taking on a side gig, freelancing, or even working a bit of overtime if possible.

The “Catch-Up” rule most people miss​

Here’s the part a lot of people don’t know: once you turn 50 or older, the IRS lets you contribute more money to your retirement accounts than younger workers. This is called a “catch-up contribution.”

It’s designed to help you make up for lost time — or to let you put in more, even if you’re already on track.

For example, in 2025, the standard 401(k) contribution limit is $23,500 per year. But if you’re 50 or older, you’re allowed to contribute an extra $7,500, raising your total annual limit to $31,000.

Even better: if you’re age 60, 61, 62, or 63, you may be eligible to contribute up to $11,250 extra beyond the regular limit — which can really help boost your savings.

Not just for 401(k)s​

These catch-up rules aren’t just for 401(k) accounts. If you’re using other workplace retirement plans like a 403(b) or 457 plan, you may also be eligible to make additional contributions after age 50.

And if you’re self-employed or working as a freelancer? You can still benefit by opening an IRA (Individual Retirement Account). In fact, you can even have both — a 401(k) and an IRA — to really power up your savings.

In 2025, the regular IRA limit is $7,000. If you’re 50 or older, you can contribute an extra $1,000, bringing the total to $8,000 per year.

Just remember: this limit applies to all IRA accounts combined. So if you have both a traditional IRA and a Roth IRA, your total across both accounts can’t be more than $8,000.

Be careful not to overcontribute​

If you accidentally go over the annual limit for your IRA, you’ll need to remove the excess contribution, along with any earnings it made. Those earnings will then be taxed as regular income — so it’s important to keep track.

Don’t leave free money on the table​

If your employer offers a matching contribution to your 401(k), be sure to take full advantage of it. According to Vanguard, the average employer match in 2024 was 4.6%. So for someone earning $60,000 a year, that’s $2,760 in free money — just for contributing to your retirement account.

Even if you can’t afford to max out your contributions, it’s worth contributing at least enough to get the full match. That way, you won’t miss out — and you might not need to worry about “catching up” later on.

Final reminder​

It’s never too late to start saving more — and with the right tools and knowledge, it’s absolutely possible to build a stronger retirement fund after 50. Whether it’s through budgeting better, earning more, or making the most of catch-up contributions, every step you take today can make a big difference in your future.