Is it ever too late to start saving for retirement? 

In an ideal world, you would start saving for retirement with your very first paycheck and keep at it until the day you leave your job. For most people, though, this is not the reality. There are plenty of reasons why you might not have enough saved to comfortably retire, even in your 60s. Perhaps you suffered a financial setback (or several), took time off from work to be a caregiver, or sacrificed to pay for your child’s tuition. Whatever your reason, the good news is: It is never too late to strengthen your retirement savings.  

Start with a realistic outlook. Does your ideal picture of retirement leave you with enough income to sustain you for decades to come? Do you plan to stop working, or embark on a second career? If you anticipate a shortfall, you can consider revisions to your plan such as scaling back your lifestyle, downsizing your home, moving to a less expensive area, or working longer.  

Along the way, make sure that if you do not already have a plan, you build one. Many people are simply not sure how much they need to have saved. There are several free online retirement planning calculators that can help you figure out how much you need to save to support your retirement income needs. The AARP retirement calculator is a good one that allows you to adjust a variety of factors to model ways you can improve your odds of not outliving your money. If you expect a pension or retirement benefit (such as Social Security in the US), review your latest statement so that you can see what percentage of your income those payments will replace. 

Speaking of improving those odds, if you have high-interest debt, such as credit card debt, make it a high priority to pay this debt off as soon as you are able. While debt consolidation loans are tempting, they may not be the ideal solution in all situations. Before consolidating debt, start with this debt consolidation calculator to understand how your monthly payments and the length of time needed to pay off your debt might change. You could save yourself potentially thousands of dollars that you can put into your retirement accounts instead. 

Most importantly, do not waste time on guilt and regret. Focus instead on catching up. You should try saving at least 15% of your current income on a regular basis, though for people catching up, closer to 20% or 25% is ideal. If possible, set up a monthly automatic transfer from your banking account to a retirement account so you force yourself to save and not spend. 

Lastly, if you have reached the age of 50 and are eligible for a US retirement account such as a 401(k), you can start making catch-up contributions, allowing you to save more than the standard annual limits. For 401(k)s, in 2025, people between the ages of 50-59 (or who are 64 and older) can contribute an additional $7,000, and those ages 60-63 can contribute an additional $11,250. For IRAs, in 2025, you can contribute an additional $1,000. These increased limits are designed to help older workers boost their retirement savings in the years leading up to retirement. 

Outside the US, employer-sponsored retirement savings plans are often broadly referred to as 'pensions' or 'superannuation.’ The specific contribution limits, tax treatment, and rules for these accounts vary significantly by country and individual plan. Consult with your employer's Human Resources or Benefits department for precise information about your eligibility and how much you can contribute. 

No matter where you are on your savings journey, remember that even small steps add up over time. By taking consistent action now, you’re giving your future self the gift of security and peace of mind. It is never too late to start, and every effort you make today can bring you closer to a more comfortable, confident retirement. Stay focused, stay positive, and trust that you are moving in the right direction.