1. Overhaul Your Budget Immediately
You need to know exactly where every dollar is going—no more guessing games. Begin by listing all your income and expenses in one place, trimming any subscriptions or services that don’t spark joy (or a clear financial return). If you’ve been dining out more than twice a week, swap one meal for a home-cooked masterpiece: you’ll be surprised how far chicken breasts stretch! Next, identify “must-haves” (rent/mortgage, utilities, groceries) versus “nice-to-haves” (premium streaming, gourmet coffee). Then carve out every spare dollar for retirement savings or debt payoff. Think of your budget like Tetris: you’re fitting pieces into the perfect financial row to clear that debt line. Tracking your spending daily—yes, daily—creates accountability and prevents surprise shortfalls at month’s end. Use a simple app or even a spreadsheet; the tool doesn’t matter, it’s the habit that counts. And if math isn’t your thing, recruit a friend (or a patient spreadsheet tutorial) to help you get set up. You’ll sleep better at night knowing exactly where your money is going.
If you need inspiration, check out how Ramsey Solutions recommends starting with debt payoff before anything else—because a clean slate in debt is the quickest way to free up cash for savings. Once you’ve built that zero-based budget, automate transfers so you “pay yourself first” before you even see the money hit your checking account. That means scheduling automatic deposits into a high-yield savings or money-market account each payday—out of sight, out of impulse. Review and adjust your budget monthly: as you pay off debts or increase income, redirect freed-up dollars toward more aggressive savings. Remember, budgeting isn’t a one-and-done chore; it’s an ongoing conversation with yourself about your priorities. And every dollar you reclaim from frivolous spending is a soldier marching toward your retirement goals.
2. Delay Social Security to Boost Your Benefit
Think Social Security is a “set-it-and-forget-it” deal at 62? Think again. If you can hold off until your full retirement age—and ideally until 70—you’ll earn “delayed retirement credits” that boost your monthly benefit by up to 8% per year. That could translate to a 75% larger check compared to claiming at 62.
Sure, it requires discipline (and often some side income or bridge savings), but the upside is a guaranteed, inflation-adjusted income stream you cannot outlive. If health and finances allow, push that filing date to 70: you’re effectively buying yourself a lifetime annuity with rock-solid returns. Many financial pros recommend this strategy for healthy individuals who don’t need the cash immediately—because an extra few hundred dollars a month can make all the difference when you’re living on a fixed income. According to AARP, waiting until 70 entitles you to more than a 75% higher benefit than if you claimed at 62.
3. Establish an Emergency “Just-In-Case” Fund
Even at 60, life can throw curveballs—medical bills, home repairs, dental emergencies. You need a cash buffer to avoid raiding retirement accounts and triggering penalties or tax hits. Experts like Suze Orman recommend a 3–5 year cushion in liquid assets such as money-market funds or short-term CDs.
Treat this fund like sacred ground: contributions come before discretionary spending. If you can’t hit 3–5 years right away, start with a $1,000 mini-target, then ramp up by $500–$1,000 each month until you’re in the safety zone. Parking this money in an online high-yield savings account ensures it’s earning while it sits, waiting for the unexpected. Having this “just-in-case” fund means market downturns won’t force you to sell your long-term investments at rock-bottom prices. That stability lets your retirement portfolio recover when the market bounces back. According to MarketWatch, retirees should maintain this cushion to avoid tapping volatile investments during downturns .
4. Max Out Catch-Up Contributions
By law, people aged 50 and over can contribute extra to their retirement accounts—so let’s milk that for all it’s worth. Starting in 2025, the IRS lets savers aged 60–63 put up to 150% of the regular catch-up amount—meaning you can stash a whopping $11,250 on top of the usual limit in your 401(k) plan. That’s not just pocket change; it’s serious firepower for your nest egg. Even if you haven’t saved a dime until now, those catch-up contributions turbocharge your savings rate in the final stretch before retirement.
Talk to your HR or plan administrator and adjust your payroll withholding today. And if you have an IRA (traditional or Roth), don’t forget the separate catch-up limit of $7,500 for those 50 and up. If you’re self-employed or have access to a SEP or SIMPLE IRA, check their catch-up rules too—every bit counts. In a bear market or a bull run, consistency wins: setting up automatic contributions ensures you stay on track without manual intervention. Even if it feels tight now, your future self will thank you for the discipline—and potentially for the extra tens of thousands of dollars in retirement savings. According to Bloomberg, these enhanced catch-up provisions can add significant runway for savers playing catch-up in their early 60s.
5. Downsize or “Right-Size” Your Living Situation
Your home is likely your biggest asset—and your biggest expense. If the mortgage, taxes, utilities, and maintenance are eating your cash flow alive, consider moving to a smaller place or even renting.
Rightsizing can free up equity to pad your retirement accounts or boost your emergency fund. If relocating to a lower-cost region is an option, you could slash housing costs dramatically while maintaining—or even improving—your quality of life. Maybe you don’t need 3,000 square feet when the kids are grown, or perhaps single-story living cuts down on expensive upkeep. Downsizing isn’t about deprivation; it’s about optimizing your living space to match your needs and financial goals. According to Bankers Life, downsizing can reduce your mortgage—or eliminate it altogether—and trim utility expenses, taxes, and insurance premiums.
6. Automate Every Dollar You Can Save
Manual transfers are tempting to skip; automation is not. Set up your checking account to automatically funnel a fixed percentage of each paycheck into retirement accounts, high-yield savings, or money-market funds.
This “set it and forget it” approach ensures you stay disciplined, even when you’re tempted by impulse buys. You’ll be less likely to question the transfer when it happens behind the scenes, and you’ll see your balance grow painlessly over time. Even small amounts—$50 or $100 per pay period—add up thanks to compounding interest. Make automation your best friend in this financial sprint.
7. Pay Down High-Interest Debt First
Credit-card interest rates (often north of 18–20%) are retirement killers. Attack these balances with a vengeance: the “avalanche method” (highest interest rate first) or the “snowball method” (smallest balance first) can work, depending on your motivation style.
Clearing high-interest debt frees up cash flow and reduces financial stress. Once you slay those dragons, redirect the freed-up payments into retirement savings or other debt payoff. And as you watch those balances drop, you’ll feel a huge psychological boost that makes tackling the next target feel almost fun. Plus, with fewer interest charges chipping away at you every month, you’ll be amazed at how quickly your freed-up cash can compound when invested instead.
8. Rebalance Your Portfolio for Your Stage of Life
If you’ve socked away some retirement funds, ensure your asset allocation aligns with your risk tolerance and time horizon. Generally, the closer you are to needing the money, the more conservative you should be—tilting toward bonds and cash equivalents instead of all-in on stocks.
A “60 minus your age” rule (percentage in stocks = 60 – your age) can be a starting point, but personal factors matter. For tailored advice, consult a fee-only advisor. According to Investopedia, maintaining a diversified mix of stocks and bonds helps manage risk as you approach retirement. Rebalancing isn’t a one-time chore—it’s a habit to revisit at least once a year or after major market swings. By periodically trimming winners and topping up laggards, you lock in gains and ensure you’re not overexposed to any single sector or asset class.
9. Consult a Professional—Get a Second Opinion
DIY finance can only get you so far. A certified financial planner (CFP™) can provide a holistic plan, from tax-efficient withdrawal strategies to insurance planning and estate tactics.
Many advisors offer an initial consultation at a flat fee; use that session to see if they’re a good fit. A professional can help you avoid costly mistakes—like early retirement account withdrawals—and maximize every asset you have. Seek out a fiduciary who’s legally bound to put your interests first, and don’t be shy about asking for references or a sample financial plan. You’d be amazed at how a fresh set of expert eyes can uncover hidden opportunities or cost-saving strategies you might’ve overlooked.
10. Take Advantage of Government and Community Programs
At 60+, you may qualify for programs you didn’t need before: low-income energy assistance, property tax deferrals, SNAP (food stamps), or even local housing subsidies.
Research both federal and state programs; eligibility varies by income and assets. Every dollar you save on essentials is a dollar you can redirect to retirement. Don’t assume these programs are only for those in dire straits—many offer sliding scales that could still benefit middle-income households. Checking with a local senior center or non-profit can uncover little-known grants and vouchers you never knew existed.
11. Draft Your Estate Plan Now
You’re never too old to set up a will, durable power of attorney, or advance healthcare directive. These documents ensure your wishes are followed and can protect your family from legal headaches.
Beneficiary designations on retirement accounts bypass probate—but they must be up to date. According to Nolo, simple estate-planning steps can save your heirs time, money, and stress when you’re gone. And don’t forget to review your documents every few years or after major life events—marriage, divorce, new grandkids—in case your wishes or circumstances change. A clear, current plan is the ultimate gift to your loved ones, letting everyone focus on memories instead of legal battles.
12. Keep Working—Even Part-Time—Past 60
If you’re healthy and able, delaying full retirement by working part-time can be a game-changer. Every dollar you earn is a dollar you don’t have to withdraw from retirement savings.
Part-time work can also offer health-insurance benefits, social interaction, and a sense of purpose—plus it slows down the depletion of your nest egg. Nearly half of Americans aged 60–75 plan to work part-time after full retirement, stretching their savings and boosting their Social Security.
This article is for informational purposes only and should not be construed as financial advice. Consult a financial professional before making investment or other financial decisions. The author and publisher make no warranties of any kind.
