A recent AARP survey showing that 61% of adults 50 or older worry they won’t have enough money to support themselves in retirement is cold comfort if you lie awake at night, concerned about your situation. But whether you’re 50, 55, or older, there is good news: There are steps you can take to improve your future.

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1. Create a post-retirement budget

The first step in taking control is to figure out where you stand. Add up how much income you expect after you retire. Include Social Security, pensions, annuity payments, rentals, and any other sources of income.

Next, list expected monthly expenses, including housing, transportation, food, and other necessities.

Once you subtract the expected monthly expenses from your estimated monthly income, you’ll know whether there’s a gap between the two and, if so, how large a gap you’re dealing with. That gap will serve as your GPS, helping you determine how much you need to save.

2. Take advantage of free money from employer-sponsored retirement plans

If your employer offers a retirement plan and matches a percentage of contributions, do everything within your power to contribute at least as much as they’ll match. For example, if the company matches 3%, you should contribute at least 3% of your salary.

Depending on the type of retirement plan you contribute to, there’s a very good chance it will be tax-deductible now, and you’ll only have to pay taxes on it when you withdraw. That 6% of your earnings may not sound much, but when those funds grow month after month, you can build a nice nest egg.

3. Open an IRA if you’re working

If you don’t work for a company that offers a retirement plan (or even if you do), consider contributing to an individual retirement account (IRA). Whether you go for a traditional or Roth IRA, it takes very little money to open an account, and you can add small amounts throughout the month.

4. Automate

We humans are funny. Once we have money in our hands, our instinct is to spend it. Make it easier on yourself by setting up automatic withdrawals.

If your company offers a retirement plan, you can have your contributions automatically withdrawn from your paychecks (typically pre-tax). Otherwise, set up auto-withdrawals with your bank so that a specific amount of money is taken from each paycheck and deposited into a savings account, money market account, retirement account, or other account you’ve earmarked specifically for retirement.

5. Play catch-up

Retirement accounts often include a catch-up contribution, which allows people over 50 to add extra funds. No matter which account you’re considering, find out how much extra you can contribute and commit to doing so if possible.

Playing catch-up may require finding a new income stream, such as a part-time job or a hobby that can be monetized, like teaching guitar or tailoring clothes. Even if a part-time job doesn’t spark joy at this moment, remember: It’s temporary. What you’re focused on right now is getting to retirement with more money.

6. Rein in spending

You’ve probably heard you can save money by doing little things, like canceling unneeded subscription services, and the advice certainly stands.

However, there are ways to save even more. For example, if you own your home, check your mortgage to ensure you’re not still paying private mortgage insurance (PMI) when you don’t have to. Typically, you can request that your mortgage company drops PMI from your monthly payments once your equity reaches 80%.

For example, if your home is currently worth $300,000 and your balance is $240,000 or less, PMI should go away. If you’re still seeing PMI on your latest statement, contact your lender about having it removed.

While you’re at it, go through your monthly budget to determine which expenses you can do without. Let’s say you’re paying someone to walk your dog or mow your lawn but are physically able to take care of those tasks on your own. Consider letting them go and banking the money you save.

7. Say “no”

No is one of the hardest words we can use when our children or other loved ones ask for money. Unless you plan on someone else covering your bills in retirement, now is the time to let people know you’re getting serious about saving and are in no position to be their ATM. Anyone who cares for you will understand.

Lastly, eliminate any shame you may feel regarding where your retirement savings stand. Shame, embarrassment, or any other negative emotion contributes absolutely nothing to your future plans.

Life happens, and if you’ve found yourself with less money than expected, view it as a challenge. Set a goal for how much you would like to save per month (or weekly if that’s easier), and once you come up with a simple plan, trust yourself to meet your goal.

Most 60-year-olds are standing on the precipice of retirement. This is a happy thought for some who were able to save consistently throughout their careers. For others, it’s alarming as they try to figure out how they’ll get by on little more than their Social Security benefits.

The best way to ensure you can afford to retire comfortably is to save some of your income every month and check in with yourself regularly to see if you’re on track for your goals. While everyone’s savings target is different, here’s what conventional wisdom has to say about how much you should have saved by the time you’re 60.

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You should be pretty close to your goal

One popular retirement rule of thumb says that you should have an amount equal to your average salary saved by the time you’re 30. This should grow to three times your average salary by 40, six times by 50, and eight times by 60. By the time you’re 67, you should have 10 times your average salary.

Using a rule of thumb like this can help you get in the ballpark of what you need for retirement. Average annual earnings as of the fourth quarter of 2024 were just under $62,000, according to the Bureau of Labor Statistics. If you hoped to have eight times that amount by the time you turned 60, you’d need $496,000.

However, this might be an underestimate for some. Another popular retirement savings rule — the 4% rule — says that you should save 25 times your estimated annual out-of-pocket retirement expenses in order to have enough to last you 30 years. If we follow this rule and assume that your estimated annual expenses in retirement will be about $60,000, you arrive at $1.5 million.

Your retirement savings target ultimately depends on your life expectancy and the type of lifestyle you hope to have. You can use the strategies listed above as a jumping-off point. But you may need to make some adjustments based on what you expect your retirement to look like. You could also try a retirement calculator to help you figure out how much you need to save.

Most 60-year-olds are coming up short

Going by our “eight times salary” rule, the average 60-year-old should have roughly $500,000 socked away for retirement. But that’s not the case for the majority of Americans. Those aged 55 to 64 have just $244,750 set aside on average. The median balance, which better reflects what an ordinary person in that age group has, is $87,571.

This puts many seniors in a tight spot. If they’re not able to save more for their future, they could struggle to afford their bills. Most will have some Social Security benefits to help them, and possibly a pension as well. But this still might not be enough to pay for all their expenses.

There isn’t an easy solution to this. Delaying retirement is worth considering if you’re able to continue working: It gives you more time to save and reduces the length and cost of your retirement. If that’s not possible, you may have to look into government benefits to see if these can help you cover your essential costs.