Saving for retirement can be a challenge, especially if life’s unexpected events or financial demands cause you to fall behind. Whether you’re nearing retirement or just starting to think about it more seriously, there are actionable steps you can take to improve your financial readiness and catch up on retirement savings. With the right strategies and consistent effort, you can work toward strengthening your retirement savings.
This guide outlines practical, actionable ways to help you make progress on your retirement savings.
1. Understand Your Current Situation
The first step to making progress is understanding where you stand. Take time to review your current retirement savings accounts, such as 401(k)s, IRAs, or other investments. Assess how much you’ve already saved, your projected retirement income needs, and the timeline you have to achieve your goals.
A clear understanding of these factors can help you identify potential gaps and set realistic savings goals.
Action Tip: Use online retirement calculators or consult with a financial professional to better understand your progress and what adjustments may be needed.
2. Take Advantage of Catch-Up Contributions
For those who are 50 or older, retirement account rules allow additional contributions beyond standard annual limits. These catch-up contributions provide an opportunity to increase your savings. In 2025, individuals can contribute an additional $7,500 annually to 401(k) accounts and $1,000 annually to IRAs.
Increasing your contributions, even incrementally, can help you stay on track.
Action Tip: If you can’t contribute the full catch-up amount right away, consider gradually increasing your contributions over time.
3. Revisit Your Budget and Prioritize Savings
Take a closer look at your monthly spending to identify areas where adjustments can be made. For example, reducing discretionary spending on nonessential items could free up funds to allocate toward your retirement savings.
Creating a budget that prioritizes saving can have a significant long-term impact. By making retirement a primary financial focus, you may see steady progress toward your goals.
Action Tip: Automate contributions to your retirement accounts to stay consistent with your savings goals.
4. Diversify and Adjust Your Investment Strategy
Your investment strategy plays an essential role in your retirement savings. Diversifying your portfolio can help balance growth potential with risk management, which is especially important if you’re closer to retirement. A mix of growth-focused assets and income-generating investments may help align your portfolio with your financial objectives.
If your savings are behind, it may be worth reviewing your asset allocation to ensure it reflects your timeline and risk tolerance.
Action Tip: Work with a financial professional to determine the investment approach that’s appropriate for your specific needs and goals.
5. Consider Delaying Retirement
Delaying retirement by a few years is a practical strategy for many individuals looking to improve their financial outlook. Staying in the workforce longer allows additional time to contribute to retirement accounts and grow your savings.
Additionally, postponing Social Security benefits can result in higher monthly payments when you do begin receiving them, which can help supplement your retirement income.
Action Tip: Use this Social Security estimator to explore how delaying benefits may affect your overall retirement income.
6. Explore Tax-Efficient Strategies for Retirement
Tax planning can play a key role in helping your retirement savings go further. Transitioning funds into accounts that offer tax advantages, such as Roth IRAs, may provide benefits down the line. Some life insurance policies also offer features that allow for supplemental income.
Reducing your tax liability during retirement may help you preserve more of your income.
Action Tip: Work with a tax planning professional to explore strategies that align with your retirement goals.
7. Supplement Your Income to Boost Savings
If your current income isn’t sufficient to meet your savings goals, consider opportunities to generate additional income. Whether through part-time work, freelance projects, or a side business, supplemental earnings can help you contribute more toward your retirement.
Every dollar saved today can play a role in your future financial readiness.
Action Tip: Allocate any extra income directly to your retirement savings accounts for focused progress.
Are You Using Strategies to Catch Up on Retirement Savings?
Catching up on retirement savings doesn’t need to feel overwhelming. By taking a proactive approach, focusing on consistent contributions, and exploring strategies tailored to your situation, you can work toward your financial goals. The sooner you begin implementing these steps, the more progress you’ll be able to achieve.
Catching up on retirement savings may seem challenging, but with thoughtful planning and actionable strategies, you can make steady progress toward your financial goals. If you’re ready to create a personalized approach to retirement savings, Riverside Wealth Advisors is here to guide you. Schedule a call with us today to explore how we can support your journey toward financial confidence.
