How to catch up on retirement savings

Core Insights - More than half of Americans aged 50 and older are concerned about insufficient retirement savings, with many wishing they had started saving earlier [1][2] Group 1: Strategies for Catching Up on Retirement Savings - Individuals aged 50 and older can make catch-up contributions to retirement accounts, allowing for increased contributions beyond standard limits, such as an additional $1,000 to IRAs and $7,500 to 401(k) plans [4] - Starting in 2025, the SECURE 2.0 Act will allow those aged 60 to 63 to contribute an additional $11,250 to workplace accounts, raising total contributions to $34,750 [4] - Maximizing returns on savings is crucial; high-yield savings accounts currently offer up to 4.5% APY compared to traditional accounts that yield only 0.01% [6][7] Group 2: Increasing Income and Reducing Debt - Increasing income can significantly boost retirement savings; options include asking for a raise, starting a side business, or seeking higher-paying job opportunities [8][9] - Eliminating high-interest debt is essential, as it frees up more funds for retirement savings; focusing on the highest-interest debts first is recommended [10] - Utilizing a budget to track income and expenses can help identify extra funds for retirement savings [11][12] Group 3: Automating Savings and Employer Contributions - Automating savings ensures that contributions to retirement accounts are prioritized; setting up automatic transfers can simplify this process [13] - Taking advantage of employer matching contributions can effectively double retirement savings; employees should aim to contribute enough to receive the full match [15][16] Group 4: Delaying Retirement - Delaying retirement can provide additional time to save and allow investments to grow; it also increases Social Security benefits if withdrawals are postponed [17] - It is emphasized that it is never too late to start saving for retirement, and individuals should act now to implement these strategies [19]