Quick Summary

• Many Americans in their 40s and 50s are approaching retirement with far less saved than they'll need, making small mistakes more expensive and harder to fix.
• Getting a second opinion on how catch-up contributions, taxes, and withdrawals fit together through SmartAsset can help late savers connect with up to three financial advisors.
• For those trying to stretch limited time and income, diversifying into income-producing assets through platforms like Arrived, thanks to backing from Jeff Bezos, can offer a way to add real estate starting with as little as $100.

More than half of Americans nearing retirement have almost nothing saved. About 55% of households ages 55 to 64 have less than $25,000 in retirement savings, and 41% have zero, according to research from Georgetown University’s Center for Retirement Initiatives. 

The numbers get worse. Only 57% of Americans in their mid-50s to mid-60s have a retirement account at all, according to 2022 Federal Reserve data. 

For those who do have savings, the median balance is $109,000, far short of the $823,800 that current retirees say is needed for a comfortable retirement. 

If you’re in your 40s or 50s and behind on savings, the gap is real. But catch-up strategies exist, and they work better than most people think.

1. Use Catch-Up Contributions Strategically

Once you turn 50, the IRS allows you to contribute more to retirement accounts than younger workers, and tools like SmartAsset can connect you with a financial advisor to understand how to use those extra limits effectively.

In 2026, workers over 50 can add an extra $7,500 to a 401(k) on top of the standard limit. Those ages 60 to 63 can contribute even more. IRAs also allow an additional $1,000 per year.

On paper, it looks simple. In practice, many people don't know how aggressively they should use these limits, or whether they're prioritizing the right accounts.

Contribution strategy depends on taxes, income timing, employer benefits, and how long you realistically plan to work. Putting money in the wrong bucket can quietly cost you tens of thousands over time.

That's why many late savers start by getting an outside review.

Some use platforms like SmartAsset to compare financial advisors who specialize in retirement planning. 

The benefit isn't just access. It's seeing multiple approaches side by side, especially when small decisions now carry oversized consequences.

After answering a few questions about income, assets, and goals, you're matched with professionals who can show you how catch-up contributions fit into a larger plan.

2. Eliminate High-Interest Debt Before Chasing Returns

Trying to build retirement savings while carrying 18% or 20% credit card debt is like filling a bucket with a hole in the bottom, which is why homeowners sometimes start looking at tools like a Rocket Mortgage HELOC as part of a broader cleanup strategy.

Every dollar going to interest is a dollar that never compounds.

Most financial planners recommend clearing high-interest balances before increasing retirement contributions beyond any employer match.

Once that debt is gone, the freed-up cash becomes a powerful tool.

A $300 monthly credit card payment redirected into a retirement account can translate into six figures over time.

For homeowners, debt management sometimes involves looking beyond credit cards.

If you've built substantial equity, consolidating high-interest balances into a lower-rate home equity financing can make sense in certain situations.

Some borrowers use Rocket's online tools to check eligibility and estimated borrowing capacity in minutes, helping them understand whether tapping equity could meaningfully improve cash flow.

3. Redirect Spending Toward Assets That Work for You

Small lifestyle cuts rarely solve large retirement gaps. But targeted changes can, especially when paired with diversification tools like Arrived, the Jeff Bezos-backed real estate platform that lets investors start with as little as $100.

Insurance premiums, vehicle costs, subscriptions, and housing expenses often hide hundreds of dollars in monthly waste.

Redirecting even $200 per month into investments can add more than $30,000 over a decade at moderate returns.

Beyond trimming expenses, some late savers look for ways to diversify how their money works. Relying entirely on market portfolios can feel risky when time is short. That's why some investors add exposure to income-producing assets outside traditional stocks and bonds.

Real estate is one example, but direct ownership isn't practical for everyone.

Arrived allows people to buy fractional shares of rental homes without handling tenants, maintenance, or repairs. The platform manages day-to-day operations while investors receive potential income and appreciation.

Because minimum investments can start around $100, its accessible even for people rebuilding savings later in life.

For many late savers, this type of investment works best as a supplemental income stream rather than a replacement for core retirement accounts.

4. Automate Growth and Remove Willpower From the Equation

Late starters rarely fail because they don't know what to do. They fail because consistency breaks down.

The easiest way to protect yourself from that is automation. Most 401(k) plans allow automatic contributions and scheduled annual increases. Many people set their savings to rise by 1% each year or whenever they get a raise.

Over time, this builds momentum without constant decision-making.

If you receive a 3% raise and increase your contribution by 1%, you still take home more money while strengthening your future.

For those who rely on freelance income or variable pay, automating transfers to IRAs or brokerage accounts can serve the same purpose.

5. Extend Your Earning Window When Possible

Working longer is one of the most powerful tools available to late savers. 

Even extending a career by two extra years can improve retirement outcomes by allowing more time for contributions, giving investments additional years to grow, reducing the need for early withdrawals, and increasing future Social Security benefits. 

Between ages 62 and 70, Social Security payments rise by roughly 8% per year when claiming is delayed, creating a permanent boost that compounds over decades. Part-time work in early retirement can also ease pressure on a portfolio. An additional $20,000 in annual income can translate into tens of thousands of dollars that do not need to be withdrawn during market downturns, helping improve long-term stability. 

This does not mean sacrificing quality of life. Many people transition into consulting, seasonal work, or reduced schedules that provide flexibility while preserving financial breathing room.

Image: Shutterstock