For IRAs, you can contribute up to $7,500 in 2026, plus a catch-up contribution of $1,100 if you’re 50 or older.
Delay taking Social Security
When you start taking Social Security matters. Though you can technically start receiving benefits at age 62, you can receive a larger amount by delaying until your full retirement age or longer.
If you start taking Social Security at 62, your benefit will be reduced by 30%. If you wait until your full retirement age, you’ll get your full benefit. For those born in 1960 or later, full retirement age is 67.
If you plan to take spousal benefits, your payment will also be reduced if you claim early. You can receive up to 50% of your spouse’s full benefit amount if you wait until you reach the full retirement age, but that can be reduced to 32.5% if you claim at 62.
Workers can receive larger payments by delaying benefits. For each year you delay up to age 70, your monthly benefit is increased by 8%. Spousal benefits don’t increase when you delay claiming benefits.
Consider downsizing
Many people downsize their homes in retirement to find a new place that will better suit their needs as they age (such as going from a multistory house to a ranch).
Downsizing can significantly reduce your housing costs, since smaller homes typically cost less and can come with lower mortgage, tax, insurance and utility costs.
If you don’t want to move and you own your home outright, you could consider getting a reverse mortgage. Reverse mortgages convert your home equity into cash that you can use to supplement your income in retirement.
When you get a reverse mortgage, the lender pays you a sum every month, lowering the amount of equity you have in your home over time. The loan must be paid back when you die or leave the home.
Depending on their needs and priorities, older adults might find a reverse mortgage to be a helpful option. However, reverse mortgages are sometimes used by fraudsters to steal equity from homeowners. Make sure you’re working with a reputable company and be wary of high-pressure sales tactics or unsolicited offers.
Pay down debt to free up cash
If you have a significant amount of debt, see if you can be more aggressive with paying it down before you retire—especially if you have high-interest debt.
If you have a high car payment, see if it’s worth trading your car in for a more affordable model. If you’re in a multicar household with multiple auto loan payments, it might also be worth considering if it makes sense to downsize to a single vehicle.
Adjust your investment strategy
Those who are approaching retirement are typically advised to adjust their investment portfolios to favor safer assets with lower returns, like bonds. This helps shield you from market volatility that could cause you to lose money right when you’re about to need it.
“Your portfolio focus [in retirement] has to be income stability, where it was previously high accumulation and growth,” says Jordan Mangaliman, fiduciary retirement advisor and founder of Goldline Wealth Management.
However, it’s possible to make your portfolio too risk-averse. For those in their 40s and 50s, investment firm T. Rowe Price says investors should continue to prioritize stocks, since they have a higher long-term growth potential compared to bonds. Even in your 60s and beyond, keeping a portion of your portfolio invested in stocks will help your money grow throughout your retirement.
A financial advisor can determine the ideal asset allocation for your needs, risk tolerance and time horizon. They can also recommend strategies for retirement income that maximize longevity and tax efficiency.
Consider delaying retirement or work part‑time
One of the most important factors when it comes to having sufficient savings in retirement is time—time to save and grow your savings. If you’re nearing retirement and your savings are still short, you can try to work a little longer so you can continue putting money away.
However, be prepared for the possibility that you won’t be able to do that. According to a survey from the Transamerica Center for Retirement Studies, slightly more than half of retirees left the workforce earlier than they’d intended, typically for employment-related reasons (such as job loss) or health issues. If you are forced to retire earlier than expected due to health issues and are below the full retirement age, you can check if you’re eligible for Social Security Disability Insurance payments. To qualify, you need to have a sufficient work history in roles where you paid Social Security taxes and have a severe medical condition that meets the Social Security Administration’s definition of a disability.
If you find yourself unable to continue working full-time, part-time work could be an option to supplement your income. Just be aware that if you’ve already started taking Social Security, continuing to work could temporarily reduce your benefit if you’re under your full retirement age and you earn more than the annual limit. In 2026, the limit is $24,480. Depending on how much you earn, you might also need to pay taxes on a portion of your Social Security benefit.
FAQ
What’s the first step if my retirement plan is short?
First, assess how much you have in your retirement savings and how that amount translates to a monthly income. This will help you understand how much additional savings you need. A free online retirement income calculator or tools offered by your retirement plan custodian can help you estimate your monthly retirement income based on your current savings and any additional income you’ll receive, such as Social Security. Once you know where you stand, you can decide on a strategy to help bridge the gap, such as increasing your savings rate or delaying retirement.
How do I decide whether to delay retirement?
If you don’t have enough saved for retirement, you might want to consider delaying retirement so you have a few more years to boost your savings. You can also delay taking your Social Security retirement benefits until age 70 to receive a larger monthly payment.
However, delaying retirement isn’t always an option. Many people end up retiring sooner than they planned, often due to health issues or job loss. Instead of delaying retirement, you could consider working part-time or finding ways to cut costs to reduce your income needs in retirement.
Can working with a financial advisor help close the gap?
A financial advisor can help you optimize your investments and withdrawal strategy to help your retirement savings last longer. Depending on your needs and your current savings, they might not be able to help you close the gap completely, but they can help ensure that you’re being as efficient as possible with the savings you do have.
How much more should I save each year?
To overcome a retirement savings deficit, you’ll likely need to save at a higher rate than you currently are—but the exact amount you should save depends on the size of your shortfall, your retirement spending needs and how much you can afford to save. If you have a 401(k) and aren’t already taking full advantage of a company match offered by your employer, boosting your savings rate to get the full match is a good place to start. If you can save even more, you might want to consider making catch-up contributions if you’re age 50 or older.
Should I cut spending or boost investment risk to catch up?
You should avoid taking on too much risk in your investment portfolio, especially if you’re already below your target. While investing in riskier assets like stocks can boost your long-term growth, you could also lose money in the near term. However, you can assess your current asset allocation and see if you’re being too conservative. A financial advisor can help you determine what an ideal allocation looks like for you.
Cutting spending can be a good way to free up extra cash for your retirement savings. If you’re able to live a little below your means for a few years, you can funnel those savings into your retirement accounts. You can contribute up to $24,500 to your 401(k) in 2026, plus an additional $8,000 if you’re age 50 or older or $11,250 if you’re between the ages of 60 and 63. Try to get as close to maximizing your retirement contributions as you can.