How to Catch Up on Retirement Savings in Your 50’s and 60’s
If you are late starting to save for retirement, you are not alone. Right or wrong, many people have put off retirement savings to finance other goals such as children’s college tuition. There are moves you can make to rectify the matter and put yourself in a more favorable position come retirement.
Utilize Catch-Up Contributions
Employees age fifty and older can contribute extra money to their employer-sponsored retirement plan, known as a catch-up contribution. In 2025, the catch-up contribution is an additional $7,500 on top of the $23,500 limit for everyone else, for a total limit of $31,000. Those ages sixty to sixty-three, the catch-up contribution jumps from $7,500 to $11,250. For Roth IRAs, the catch-up contribution is an additional $1,000 on top of the $7,000 limit for everyone else, for a total limit of $8,000. The IRS has detailed breakdowns of the rules and limits.
Beginning in 2026, if you earned over $145,000 last year, you must make catch-up contributions after taxes to a designated Roth 401(k) account, which means you will not get a tax deduction. Those earning $145,000 or less in the prior year can continue making catch-up contributions to their traditional pre-tax 401(k) plans.
Table 1: Catch-Up Contributions for Retirement Savings
| Account Type | Under 50 Limit | Extra for 50+ | Total (50+) | Special Rules / Notes |
|---|---|---|---|---|
| 401(k) / 403(b) | $23,500 | +$7,500 | $31,000 | Ages 60–63: extra increases to $11,250 Starting 2026: • Over $145k: must use Roth 401(k) (after-tax) • Under $145k: can use Traditional 401(k) (pre-tax) |
| Roth IRA | $7,000 | +$1,000 | $8,000 | Income limits: • Single: under $150,000 • Joint: under $236,000 |
| Traditional IRA | $7,000 | +$1,000 | $8,000 | No income limit to contribute Deduction depends on income & access to a 401(k) |
Roth IRA Income Limits
For 2025, single filers must have a modified adjusted gross income (MAGI) of less than $150,000, and joint filers less than $236,000, to make a full contribution. For joint filers, each spouse can have their own Roth IRA. The total contribution limit for each spouse is $7,000, or $8,000 if they are fifty years or older. Therefore, if both qualify, a married couple can collectively contribute up to $14,000, or $16,000 if both spouses are over fifty. Additionally, a nonworking spouse can also contribute to a Roth IRA through a spousal IRA if the working spouse has earned income to account for both contributions.
Traditional IRA Income Limits
Anyone can contribute to a traditional IRA; there’s no income limit. IRA. But your income (as well as your spouse’s) affects whether you can deduct your traditional IRA contributions from your taxable income for the year. If you and your spouse don’t have workplace plans, you can deduct the full amount of your IRA contributions, up to the contribution limit. However, if you and/or your spouse are covered by a workplace plan, your eligible deduction limit may be decreased based on your tax-filing status and modified adjusted gross income (MAGI).
Trim Back Expenses
Granted this is easier said than done. However, if you are committed to this task, you can certainly find money by taking the time to go through your bills and statements. Look at unused subscriptions, unnecessary fees, frivolous spending, etc. Also, consider shopping around for better plans (think cell phones, insurance, streaming/cable, etc.) Avoid buying premium level items and settle for middle of the road level items instead.
Consider Earning Extra Income
Many people today have side gigs in addition to their primary job. These funds can be used to pay down any high interest debt you may have or to serve as extra income to direct toward your retirement savings goals. Paying off high-interest debt before retirement is smart and strategic.
Many use debt payment strategies such as the “avalanche” or “snowball” method to do this. Having an emergency fund is vital in this effort. If you have funds set aside for emergencies or atypical expenses, you will not need to raid your bill pay account or use a credit card. Consider utilizing a high-yield online savings account for this purpose rather than a traditional checking/savings account. High-yield online savings accounts typically offer higher interest rates, allowing your money to grow quickly.
Save Any Unexpected Financial Inflows
Got a bonus, refund, or gift? Put that money to work. Consider beefing up your emergency fund or contributing more to your qualified plans. Resist the urge to spend this newfound money.
Automate Your Retirement Savings & Revisit Goals
Set up automatic contributions to stay on track with your savings. If you rely on yourself to remember to transfer funds each month, you may forget or worse, you may just choose to spend it on whatever brings instant gratification at that moment. It is crucial you revisit your goals every six months or so. What if your income or expenses have changed? What if you decide to retire earlier? Your initial figures may need to be adjusted. Life is dynamic, so you need to make sure you are accounting for any changes.
Avoid Being Too Cautious Investing
Many late savers try to protect their money by avoiding risk. A certain degree of risk can be healthy and even necessary at times, to at the very least, keep pace with inflation. Focusing on short-term market fluctuations will quickly derail long-term financial goals. Establishing a comfortable risk tolerance allows an individual to stay invested during market volatility. Making decisions grounded in facts instead of emotional responses increases the potential success of a financial plan. Ensuring your portfolio is well diversified will help limit risk and open the door for upside opportunities.
Simply put, there are steps you can take now to get back on track if you have fallen behind saving for retirement. The most important and significant step you can take is to START NOW. If you are interested in working with a fee-only registered investment advisor fiduciary, please contact us at 410-840-9200 or visit us at www.mainstadvisors.com.
Main Street Advisors, LLC. July 2025. Main Street Advisors, Inc. is a Registered Investment Advisor. The articles and opinions expressed in this material were gathered from a variety of sources, but are reviewed by Main Street Advisors, LLC, prior to its dissemination. All sources are believed to be reliable but do not constitute specific investment advice. The views expressed are those of the firm as of July 2025 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice. Any advice given is general in nature and investors must consider their own individual situation. Always contact your financial/investment professional before making any financial decisions. Main Street Advisors, LLC is not responsible for any damage or losses arising from any use of this information. Past performance is no guarantee of future results.
Sources:
Forbes. (February 28, 2025). Starting Retirement Savings Later in Life: How to Catch Up
Starting Retirement Savings Later In Life: How To Catch Up
FINRA. (October 17, 2024). 5 Things to Do to Boost Retirement Savings
https://www.finra.org/investors/insights/things-to-do-boost-retirement-savings
SmartAsset. (September 26, 2024). How to Catch Up on Retirement Savings in Your 50’s
https://smartasset.com/retirement/how-to-catch-up-on-retirement-savings-in-your-50s
