Retirement Savings Comeback Tour
Retirement Savings Comeback Tour
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Hey Retirement Rockstars! If your retirement savings are feeling more garage band than stadium tour, do not sweat it. Plenty of Gen X’ers are in the same boat. Life happened. Kids needed braces. Jobs shifted. Suddenly, retirement snuck up like an encore you were not ready for. You just need to catch up on those retirement savings.
Here is the good news: it is not too late to catch up. You can create a retirement that is loud, proud, and totally yours. Whether you are 50 and just starting to save, this guide will help you. Even if you are 58 and feeling behind, this guide is your amp-cranked roadmap. It provides actionable tips to help you catch up your retirement savings and get back on track.
You Know the Difference—Now Let’s Stuff Those IRAs
In a recent post, we broke down the difference between Roth and Traditional IRAs. Quick refresher:
–Traditional IRA: Contributions will be tax-deductible now, but you will pay taxes when you withdraw later.
–Roth IRA: You pay taxes now, but withdrawals in retirement are tax-free.
Now that you have picked your flavor, it is time to start stuffing those accounts. Treat them like they are your favorite vinyl crate at a record fair. Max them out! The IRS-approved breakdown: Under 50: You can contribute up to $7,000/year; 50 and older: you get a catch-up boost of $8,000/year.
Let’s say you’re 52 and just starting. If you max out your IRA every year for the next 10 years, that is $80,000 in contributions. With modest growth (say 6% annually), you could end up with over $110,000 by retirement. That is not just a backup plan—it is a bass drop.
I Use Acorns—Here is the Breakdown
If you are not into spreadsheets and stock picking, Acorns is like having a financial roadie.
Acorns Features:
Round-Ups: Spend $4.25 on coffee, and Acorns rounds up to $5, investing the extra $0.75.
Recurring Contributions: Set it to auto-invest $25/week, and you will stash $1,300/year without lifting a finger.
Retirement Accounts: Acorns Later offers Traditional, Roth, and SEP IRAs. It even recommends which one based on your goals.
Example: I set Acorns to round up every purchase and auto-invest $50/month. In a year, I saved over $1,000 without noticing. That is a new kayak—or a chunk of my Roth IRA.
Save/Invest at Least 15% of Your Income
This is the golden rule of catch-up saving. If you are earning $60,000/year, aim to save $9,000/year. That sounds intense, but with a few smart moves, it is totally doable.
Look for Retirement Savings Catch Up Opportunities in Your Monthly Budget
Let’s break it down with real-life examples:
Cut Cable: Ditch the $150/month cable bill. Switch to Netflix, Hulu, and free streaming apps like Pluto TV for under $30/month. That is $1,440/year saved.
Phone Costs: Still paying for five lines when the kids moved out? Drop to two lines and switch to a budget carrier like Mint Mobile or Visible. You go from $250/month to $60/month. That is $2,280/year saved.
Stop Eating Out: If you eat out 3x/week at $20/meal, that is $240/month. Cut it to once a week and save $160/month, or $1,920/year.
Free Entertainment: Swap concerts and movies for community events, hiking trails, and library programs. Even one less $50 event per month saves $600/year.
Total potential savings: $6,240/year—that is nearly 70% of your 15% goal right there. That is a serious comeback stride toward catching up retirement savings.
Create a Savings Challenge
Make saving fun. Here are a few ideas:
$5 Bill Challenge: Every time you get a $5 bill, stash it. If you collect 3 per week, that is $15/week or $780/year.
No-Spend Weekends: Pick two weekends a month to spend nothing but essentials. If you normally spend $100/weekend, that is $2,400/year saved.
Round-Up Jar: Manually round up every purchase and toss the change into a jar or savings app. Spend $18.75? Save $1.25. It adds up fast.
Example: I did a “no Amazon month” and saved $300. That went straight into my IRA. Boom—progress.
Increase Your Income—Turn Up the Gain
If cutting expenses is not enough, it is time to bring in more cash. Think of it as adding a second guitar to your band—more depth, more power, more options.
Second Job
Part-time gigs are not just for teenagers. Think flexible, low-stress, and aligned with your interests.
Weekend retail: Stores like REI or Michaels often hire part-time help.
Seasonal work: Tax prep, holiday retail, or summer camp gigs.
Freelance: Use skills like writing, design, or tutoring.
Example: A friend picked up a weekend gig at a local brewery—fun atmosphere, extra $400/month, and free beer. Win-win.
Side Hustle (Future Post Coming Soon!)
You have skills. Maybe you crochet, craft, write, or plan outdoor adventures. Turn that into income.
Sell patterns or kits online
Host workshops or classes
Start a blog (like this one!) and monetize with affiliate links
We will dive deep into side hustles in a future post, but start brainstorming now.
Reverse Mortgage on Your Home
If you are 62+, a reverse mortgage lets you tap into your home equity without selling. You get monthly payments or a lump sum, and you do not repay until you move or pass away.
Example: A retired couple in Arkansas used a reverse mortgage to cover healthcare costs and travel. It gave them breathing room without selling their home.
d. Sell Your Home and Buy a Cheaper One
Downsizing is not defeat—it is strategy.
Sell your $300,000 home
Buy a $200,000 condo
Pocket $100,000 to invest or use for living expenses
Bonus: Lower property taxes, utilities, and maintenance.
IV. Retire Abroad (Another Future Post )
Want to really shake things up? Consider retiring abroad.
Portugal: Affordable healthcare, mild climate, and expat-friendly.
Costa Rica: Nature, adventure, and low living costs.
Mexico: Vibrant culture, great food, and budget-friendly living.
We will dive into this in a future post, but start dreaming now. Your retirement tour could be international.
Delay Retirement—Not a Buzzkill, Just Smart Strategy
Delaying retirement by even a few years can make a massive difference.
More time to save: Keep contributing to IRAs and 401(k)s.
Fewer years to fund: Retire at 67 instead of 62, and you need five fewer years of income.
Bigger Social Security checks: Wait until 70, and your monthly benefit will be 30% higher.
Example: If at age 62, your Social Security benefit is $1,200/month, it is expected to increase to $2,000/month. This increase occurs by waiting until you are 70. That’s an extra $9,600/year—for life.
Conclusion
You are not too late. You are not too old. And you are definitely not too boring to build a retirement that rocks.
Catching up on savings is not about guilt—it is about grit. It’s about turning the dial up on your future and refusing to fade out quietly. You have several options. You can be maxing out IRAs, slashing expenses, boosting income, or dreaming of a beachside bungalow in Belize. You have power. You have the mindset of a Rockstar.
So grab your Retirement Starter Mixtape, crank it up, and start laying down the tracks for your next big hit. Because this is not the end—this is your encore.
Until next time,
Keep on rockin’ in the free world,
Tia
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