Feeling Behind on Retirement? You’re Not Out of Time
I had coffee with a friend last week- let’s call her Susan- who said something that stuck with me:
"Rich, I'm 53, and I feel like I'm running out of time to get my retirement right."
If you feel the same way, I have good news: you’re not running out of time- you’re entering one of the most powerful decades for retirement savings.
Over my 23 years in the industry and my experience as a CERTIFIED FINANCIAL PLANNER™, I’ve seen countless clients in their 50s transform their retirement outlook. This decade isn’t about panic—it’s about precision.
Why Your 50s Are Perfect for Retirement Planning
If you’re like many of my clients in their 50s, you may be:
- At or near your peak earning years
- Finally finished supporting kids financially
- More experienced and financially stable than ever
And most importantly, you still have time. Even 10-15 years can be enough for your money to compound and work hard for you.
Here are six proven moves that can make all the difference:
Move #1: Stop Lifestyle Creep in Its Tracks
Last month, I reviewed a client's spending with her, and she was shocked to discover she was spending $800 more per month than she was five years ago - on the same lifestyle. That's lifestyle creep, and it's retirement poison.
Action Step: Track your monthly cash flow. Any extra money should automatically flow to retirement savings. Set up transfers the day after your paycheck hits; you can’t spend what you don’t see.
Move #2: Maximize Catch-Up Contributions
If there's one advantage to being better than 50, it's catch-up contributions. These are like a gift from the government - extra room to save that younger people don't get.
- In 2025, you can contribute an extra $7,500 to your 401(k) or 403(b)
- Add an extra $1,000 to your IRA
- Ages 60–63 get access to “super catch-ups” of $11,250 in a 401(k)
Over 15 years, an extra $7,500 per year earning 7% could grow to nearly $193,000. That’s the power of compounding.
As a Behavioral Financial Advisor, I know it can be tempting to think these amounts are "too small to matter." They're not. These contributions add up quickly, and with compounding, they can significantly boost your retirement readiness.
Move #3: Supercharge Savings with an HSA
Here's a number that might surprise you: healthcare in retirement can cost as much as $172,500 during your lifetime. That's a lot of money you need to plan for.If you have access to a Health Savings Account (HSA), use it. HSAs are triple tax-free - you get a deduction when you contribute, they grow tax-free, and you don't pay taxes when you withdraw for qualified medical expenses.
- Triple tax benefit: deductible contributions, tax-free growth, tax-free withdrawals for qualified expenses
- 2025 limits: $4,300 (individual), $8,550 (family), plus $1,000 catch-up if you’re 55+
Pro Tip: Here's my strategy for clients: if you're healthy and don't expect many medical expenses right now, let your HSA grow like a retirement account. After age 65, you can withdraw money for any reason (you'll pay taxes, but no penalties). It's like having an extra IRA.
Move #4: Eliminate High-Interest Debt
I can't tell you how many clients come to me carrying credit card debt into their 50s. It's like trying to fill a bucket with a hole in the bottom.
Here's the reality: paying off high-interest debt is often the best "investment" you can make. If you're paying 18% on a credit card, paying that off gives you a guaranteed 18% return.
Two strategies work best:
- Avalanche method: pay off the highest interest rate first
- Snowball method: pay off smallest balances first
Choose whichever keeps you motivated. Both free up cash for retirement.
Move #5: Find Hidden Money to Save
Many clients are surprised at how much they can free up with a little digging. Look for savings in:
- Unused memberships or subscriptions
- Dining out more than expected
- High car payments
- Overspending on housing
Even an extra $400 per month saved over 15 years can significantly boost your retirement fund.
Move #6: Don’t Get Too Conservative Too Soon
Here's where I see a lot of people make a big mistake. As they get closer to retirement, they think they need to move everything to "safe" investments. But retirement can last 30 years or more. Your money still needs to grow.
Balanced Approach: Keep a healthy allocation to growth investments while gradually reducing risk. Don’t let fear rob your future self of needed returns.
The Key: Stick With Your Plan
Here's what I've learned after 23 years in this profession: the clients who succeed aren't necessarily the ones who make the most money or start the earliest. They're the ones who make a plan and stick with it.
Even modest extra savings can grow meaningfully over the next 10-15 years. The compounding effect is powerful, and time is still on your side.
You Don’t Have to Do This Alone
If you’re unsure where to begin, that’s where professional guidance comes in.
As a fiduciary CFP® and AIF®, I help women in their 50s build confidence in their retirement plans. My mission is to ensure your money works as hard for you as you’ve worked to earn it.
Ready to create a plan that actually works? Follow this LINK to schedule a conversation. I'd love to help you turn your retirement concerns into retirement confidence.
Richard Dunn, CFP®, AIF® is a fiduciary financial planner based in West Saint Paul, Minnesota. As a registered representative and investment advisor representative with AVANTAX, a division of CETERA, he provides comprehensive fiduciary financial planning services. This article is for educational purposes only and does not constitute investment, legal, or tax advice.
FAQs: Boosting Retirement Savings in Your 50s
1. Is it too late to save for retirement if I’m already in my 50s?
No. Your 50s can be one of the most powerful decades for retirement planning. With higher earning potential, catch-up contributions, and compounding over the next 10–15 years, you still have time to make meaningful progress.
2. What are catch-up contributions, and how do they work?
Catch-up contributions are extra amounts people age 50+ can put into retirement accounts. In 2025, that’s an additional $7,500 for 401(k)/403(b) plans and $1,000 for IRAs. If you’re 60–63, you may also qualify for “super catch-ups” of $11,250 in a 401(k).
3. Should I pay off debt or save more for retirement first?
It depends on your debt. Paying off high-interest debt (like credit cards at 18% or higher) often provides a better return than investing. Once debt is under control, redirect that money into retirement savings.
4. Why is a Health Savings Account (HSA) good for retirement planning?
HSAs offer triple tax benefits: deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. After age 65, you can even use the funds for non-medical expenses (taxable, but no penalty).
5. Should I move my money into safer investments as I near retirement?
Not entirely. While it’s smart to gradually reduce risk, retirement can last 20–30 years or more, so growth investments are still important. Staying too conservative too early may leave you short on income later.