The combination of major economic events and everyday financial setbacks can take a real toll on retirement savings. Market downturns, inflation, and periods of uncertainty can shrink investment balances or slow progress. At the same time, personal challenges like medical bills, job loss, divorce, or the cost of a child’s education can throw even the best retirement plan off course.
If your retirement savings are not where you want them to be, that does not mean you are out of options. In many cases, you can still make meaningful improvements and strengthen your financial future. Here are several practical steps you can take to get your retirement plan back on track.
Investing for Your Retirement
Retirement can feel far away until it suddenly feels close. If you are concerned that your savings may not be enough, you still have time to take action. The key is to increase contributions where possible, stay invested with a long-term plan, and look for ways to boost your income.
Consider catch-up contributions
The IRS allows people who are age 50 and older to make additional “catch-up” contributions to retirement accounts. These higher limits are designed to help people accelerate savings later in life.
For 2025, the 401(k) catch-up contribution limit is $7,500 per year. IRA catch-up contributions allow an additional $1,000 per year. Taking advantage of catch-up contributions can help you build more retirement savings during the years when retirement is getting closer.
Explore additional income opportunities
Increasing your income, even temporarily, can help you save more without drastically cutting your lifestyle. Many people use part-time work, freelancing, consulting, or flexible gig work to generate extra cash flow.
A side gig does not have to be permanent. Even short-term extra income can help you pay down debt, rebuild savings, or increase retirement contributions.
Consider working longer
Delaying retirement can improve your financial situation in several ways. It gives you more time to save, more time for your investments to grow, and fewer years that your savings need to support.
Working longer can also increase your Social Security benefit. While the exact benefit depends on your earnings history and full retirement age, waiting to claim benefits can raise your monthly payment. For example, claiming Social Security later can result in a significantly higher monthly benefit than claiming early.
Get professional guidance if needed
If you are unsure where to start, a financial advisor can help you create a realistic plan. The right guidance can be especially useful if you are balancing retirement savings with debt payoff, healthcare planning, or major life changes.
Ways to Save
Saving more money gives you more to invest. Even small reductions in monthly spending can add up over time, especially if you redirect the savings into retirement accounts.
Cut unnecessary subscriptions
Many households pay for multiple streaming services, apps, or memberships that they rarely use. Reviewing subscriptions and canceling those you do not need is an easy way to save money each month.
Cook at home more often
Eating out frequently is one of the most common budget drains. Cooking at home more often can significantly reduce spending. It can also help you waste less food and take better control of your grocery budget.
Reduce major lifestyle expenses
Big fixed expenses have the largest impact on your ability to save. If you can reduce housing costs, transportation costs, or debt payments, you can create more room in your budget for retirement investing.
For example, a two-car household may be able to shift to one car or focus on paying off a vehicle loan to reduce monthly payments. Downsizing certain lifestyle costs can make retirement savings feel much more manageable.
The goal is not to cut everything. It is to make targeted changes that lower your monthly spending so you can invest more consistently.
Takeaway
You do not have to live in constant sacrifice to rebuild your retirement savings. A combination of saving more, earning more, and investing strategically can help you get back on track. With the right adjustments, you can improve your retirement outlook and create a future that feels far more financially secure.