How to catch up on retirement savings when starting in your 40s
Starting to invest later in life leaves a short window to build a secure fund, often with no employer-sponsored 401k or significant Social Security backup. This requires adopting an aggressive savings plan to get finances on track and make up for lost time.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
Found another way around this?
Share your steps and trade-offs so fellow engineers don't have to reinvent the wheel. No account required.
- 1Reading financial books like A Random Walk Down Wall Street or consulting community wikis.Did this help you?
- 2Opening a Solo 401k or SEP IRADid this help you?
- 3Investing in index funds through a brokerage accountDid this help you?
- 4Increasing the overall savings rate to catch upDid this help you?
- 5Keeping education savings in a high-interest savings account instead of investingDid this help you?
- 6Paying for college expenses directly out of pocketDid this help you?
- 7Trying to track a budget to find spare moneyDid this help you?
- 8Reading basic finance and early retirement blogsDid this help you?
- 9Relying on comments, wikis, and community advice to understand investment optionsDid this help you?
- 10increasing 401(k) contributions significantlyDid this help you?
- 11planning to aggressively pay down high car loan paymentsDid this help you?
- 12opening and funding a Roth IRADid this help you?
- 13suggesting a three-fund portfolioDid this help you?
- 14recommending broad-market index funds over high-yield dividend fundsDid this help you?
- 15increasing contribution percentageDid this help you?
- 16opening a personal brokerage or Roth IRA accountDid this help you?
- 17reviewing the personal finance wiki prime directiveDid this help you?
- 18Starting a budget to track expenses and find hidden savingsDid this help you?
- 19Increasing retirement contributions and aiming for a higher savings rateDid this help you?
- 20Prioritizing tax-advantaged retirement accounts instead of paying extra on the mortgageDid this help you?
- 21Focusing on clearing existing debt before accelerating mortgage principal paymentsDid this help you?
- 22Dropping down to the employer match in the 401k to build the emergency fund as fast as possibleDid this help you?
- 23Starting a Roth IRA and funding it after the emergency fund is builtDid this help you?
- 24Bumping up 401k contributions as high as the budget allows once other priorities are metDid this help you?
- 25Automating monthly retirement contributionsDid this help you?
- 26Opening a Roth IRA and maxing out annual contributionsDid this help you?
- 27Using compound interest calculators to map out long-term growth and timeline goalsDid this help you?
- 28Asking for advice on Reddit forums like personalfinanceDid this help you?
- 29Reading books like I Will Teach You To Be RichDid this help you?
- 30Following financial guides and flowcharts such as the Money Guy FOODid this help you?
- 31Asking online communities for reassurance and adviceDid this help you?
- 32Researching alternative fund allocations like three-fund portfoliosDid this help you?
- 33Reading personal finance forums and community wikis/flowcharts to figure out account priority.Did this help you?
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“I'm 41 with $20k in a 401k. Currently I'm only able to contribute 1% to my 401k.”source ↗
“I don't understand retirement accounts or investing. I read about this subject but it might as well have been in a foreign language because I ended up more confused than when I started.”source ↗
“Can this be fixed? Should I plan to work until the day I die?”source ↗
“I know I’m far behind based on my age 😩”source ↗
“I started saving and investing during the COVID crash. Before that, I was self employed and wasn't making nearly as much money, at least not consistently.”source ↗
“My salary has increased significantly, but my cash savings are low after paying off some credit card debt.”source ↗
“How is my financial health? What would you prioritize in my situation?”source ↗
“What's my immediate next move? 7% of my check goes directly into 401k. We use Paycom, Fidelity and Empower through my work but I have no idea where to start and how to set it up?”source ↗
“40 years old, no 401k, very little SS.”source ↗
“I need an aggressive retirement savings plan to get on track.”source ↗
“Hello, I’ve been interested in posting for this for a long time asking for some advice on how to get towards retirement.”source ↗
“I’m finally getting my finances in order and realized I’m super late to the 529 game.”source ↗
“She still has about 9 years before college, so I’m not sure which 529 plan makes the most sense for her. I’m trying to figure out the best option for long-term growth and low fees.”source ↗
“Hello I am about to turn 35 and have not made any retirement moves other than savings and my job’s retirement plan.”source ↗
“I am looking to make up for lost time as much as I can and I am in a good place financially now so I have some money to invest, I’m just not sure what to do.”source ↗
“I don’t know your age but I wish I started investing in index funds in my early 20s instead of my 30s.”source ↗
“I'm 48 with very little retirement and stocks investments.”source ↗
“With my age and current investments, what would you invest in?”source ↗
“Yes you should be worried. You’re starting later than most and have some catchup to do.”source ↗
“You're pretty far behind, all that means is you just need to be more aggressive.”source ↗
“Overall, I feel like I got a later start with retirement savings than I should have, but I’ve been trying to make up for it over the last few years.”source ↗
“For someone turning 31 with these numbers, how do you think I’m doing? Is there anything you would change about how I’m allocating my money right now?”source ↗
“I’m trying to figure out the best way to balance rebuilding my emergency fund, contributing more toward retirement, and managing my existing investments since I’m starting retirement savings later at age 47.”source ↗
“I know I am starting late in life does anyone have any advice/words of encouragement for my situation?”source ↗
“I am curious how other people who started in my position are doing after a few years”source ↗
“Been reading through this sub for the past few weeks feeling behind 🥴”source ↗
Where this came up
People with this problem also raised
- 14How to invest savings when moving abroad in 2-3 years
- 3Am I too far behind to start saving for retirement?
- 26How to start investing with very little money
- 3Should I sell brokerage investments to max out retirement accounts?
- 2What to do when a structured note matures
- 7Where should I invest money I need in two years?