It’s never too late to take control of your financial future.
Realizing your retirement savings aren’t where you hoped they would be can be a deeply stressful experience. The good news is that feeling of panic can be channeled into productive action. For those of us in our later working years, there are still powerful, practical moves we can make to significantly improve our financial outlook.
It’s not about finding a magic bullet. It’s about making a series of smart, intentional decisions right now that will create a more secure and comfortable future.
1. Re-evaluate your budget with a critical eye.
The first step is to get an honest, unflinching look at where your money is going. Track every expense for a month to identify leaks you may not even be aware of, like unused subscriptions or frequent small purchases that add up. Once you have a clear picture, you can create a realistic budget that aggressively cuts non-essential spending, CNBC reports.
This isn’t about depriving yourself; it’s about redirecting your financial resources toward your most important long-term goal: a secure retirement. It’s the foundational move upon which all others are built.
2. Delay taking your Social Security benefits.
This is one of the most powerful levers you can pull. For every year you delay taking Social Security past your full retirement age (up to age 70), your monthly benefit permanently increases by about 8%, as reported by Yahoo! Finance. If you are healthy and able to keep working, waiting as long as possible can provide a much larger, inflation-protected income stream for the rest of your life.
This requires patience, but the long-term payoff can be the difference between a tight budget and a comfortable one throughout your retirement years.
3. Take full advantage of catch-up contributions.
The government allows those of us over 50 to contribute more to our retirement accounts than younger people. For 2025, you can contribute an extra $7,500 to a 401(k) and an extra $1,000 to an IRA, Investopedia shared. If you are still working, you should make it your top priority to max out these catch-up contributions.
This is essentially a government-sanctioned way to put your retirement savings into overdrive. It’s free money in terms of tax advantages, and you should not leave it on the table.
4. Consider downsizing your home sooner rather than later.
For many of us, our home is our largest asset and our largest expense. Downsizing to a smaller, less expensive home can free up a significant amount of equity that can be added directly to your retirement nest egg. It also reduces ongoing costs like property taxes, insurance, utilities, and maintenance, freeing up more cash flow each month.
This move can dramatically reshape your retirement finances in one single action, providing a huge injection of capital exactly when you need it most.
5. Explore moving to a lower cost-of-living area.
If downsizing in your current location isn’t enough, consider relocating to a state or city with a lower cost of living and a more favorable tax environment for retirees. The same retirement savings can stretch much further in a place where housing, healthcare, and everyday expenses are more affordable. This can drastically reduce the financial pressure you feel.
A geographic move is a big decision, but the financial benefits can be transformative, allowing you to live a richer life on the same amount of money.
6. Embrace an ‘encore’ career or part-time work.
Retirement doesn’t have to be an all-or-nothing proposition. Working part-time in your 60s and even 70s can provide a crucial income stream that allows your retirement savings to continue growing untouched. An encore career could be consulting in your former field, turning a hobby into a small business, or simply finding a low-stress job you enjoy.
Even a small amount of income can make a huge difference, reducing the amount you need to withdraw from your portfolio each year and extending its longevity.
7. Get serious about paying off all high-interest debt.
Entering retirement with high-interest debt, like credit card balances, is like trying to run a race with weights tied to your ankles. The interest payments drain your cash flow and work directly against your savings goals. Make a concrete plan to aggressively pay off this debt before you stop working full-time, starting with the highest-interest balances first.
Being debt-free when you enter retirement provides incredible peace of mind and frees up hundreds or even thousands of dollars per year for your actual living expenses.
8. Review and adjust your investment strategy.
As you get closer to retirement, your investment risk tolerance may change, but this doesn’t mean you should pull everything out of the market. Your portfolio still needs to grow to last for a potential 20- or 30-year retirement. It may be time to meet with a financial advisor to ensure your asset allocation is appropriate for your age and goals.
The goal is to find the right balance between protecting your principal and ensuring enough growth to outpace inflation and fund your lifestyle for decades to come.
9. Monetize a skill or a passion you already have.
Think about the skills and hobbies you have cultivated over a lifetime. Can you offer tutoring, consulting, or freelance services? Are you skilled at crafting, baking, or repairing things? Creating a small income stream from something you are passionate about can be a fun and rewarding way to supplement your retirement savings without the stress of a traditional job.
This approach not only brings in extra cash but also keeps you mentally engaged and socially connected, which are key components of a happy retirement.
10. Meet with a fee-only financial advisor.
Navigating these decisions can be overwhelming, and a professional, unbiased opinion is invaluable. A fee-only financial advisor is legally obligated to act in your best interest and is paid directly by you, not by commissions from selling products. They can help you create a holistic plan that integrates all these strategies and gives you a clear path forward.
This small investment in professional advice can provide immense clarity and confidence, ensuring the moves you make are the right ones for your specific situation.