This single mom saved $1 million in 15 years to retire at 49. How to use her strategies to catch up on retirement savings.

Core Insights - The article discusses the challenges and strategies for late savers, particularly those starting to save for retirement later in life, emphasizing that it is possible to achieve financial independence with a focused plan and discipline [3][5][8]. Group 1: Personal Stories and Experiences - Jackie Cummings Koski, a single mother, began saving for retirement after her divorce in 2004 and retired in 2019 with a portfolio of approximately $1.2 million at age 49, despite a modest income that peaked at just over $100,000 [2]. - Cummings Koski's approach included saving 30% to 40% of her income and investing in an S&P 500 index fund, which significantly reduced her taxable income and allowed her to live comfortably on $40,000 to $45,000 annually [1][2]. Group 2: Financial Planning Insights - Financial experts suggest that late savers can still catch up by adopting a clear plan and maintaining discipline, despite the urgency due to a compressed timeline [3][8]. - A significant portion of Americans aged 55 to 64 lack adequate retirement savings, with only 77% having specific retirement accounts, and just half of those aged 60 and older feeling their savings are on track [4]. Group 3: Strategies for Late Savers - The article outlines a hypothetical plan for a 50-year-old starting with no assets and $50,000 in debt to accumulate $1 million by age 65, emphasizing the importance of acknowledging emotions and assessing financial situations [9][11]. - Key strategies include committing to a low-cost lifestyle, maximizing contributions to retirement accounts, and focusing on increasing income through job promotions and side hustles [15][24][25]. Group 4: Behavioral Changes and Mindset - Financial planners emphasize the need for late starters to shift from idealized retirement planning to realistic behavioral planning, which includes tracking expenses and income to reduce anxiety and optimize savings [12][27]. - Understanding personal definitions of retirement is crucial, as it influences savings strategies and expectations [28].