Late to Retirement Planning? 6 Strategies to Help You Catch Up in 2026.
Late to Retirement Planning? 6 Strategies to Help You Catch Up in 2026.
Selena Maranjian, The Motley FoolThu, April 30, 2026 at 5:50 AM UTC
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Key Points -
It may be obvious, but try to save and invest more -- ideally, a lot more.
Consider delaying retirement by a few years, too.
Delaying Social Security can also benefit you, making your benefit checks bigger.
The $23,760 Social Security bonus most retirees completely overlook ›
Are you feeling like you're way behind where you should be, not having planned much or at all for retirement and perhaps not saved much, either? Well, you're not alone. Check out these findings, from the 2026 Retirement Confidence Survey:
Amount in Savings and Investments*
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Percentage of Workers
Less than $1,000
22%
$1,000 to $9,999
7%
$10,000 to $24,999
7%
$25,000 to $49,999
5%
$50,000 to $99,999
11%
$100,000 to $250,000
14%
$250,000 or more
35%
Data source: 2026 Retirement Confidence Survey. *Excluding the value of a primary home.
Person with pursed lips staring at a laptop with a worried expression.
Image source: Getty Images.
See? Most people have relatively little socked away. That's definitely not good, but there are ways to make progress and greatly improve your financial condition as you approach retirement. Here are a few to consider.
1. Develop a plan
It's hard to reach a secure retirement without some kind of plan. So take a little time to think about how much income you expect to need in retirement. Think of all your expenses, such as food, shelter, utilities, taxes, travel, entertainment, and so on. Remember to think about how much healthcare might cost you in retirement, too, and about how you might keep healthcare costs down.
Engaging in a budgeting exercise can shed a lot of light on where you're spending your money now and where you might cut back.
Using the information you've gathered, you can develop a good retirement plan. It can be effective to build multiple income streams -- ending up with something like this:
Income Source
Annual Income
Social Security
$30,000
Dividends from stocks
$20,000
IRA and 401(k) withdrawals
$10,000
Fixed annuity income
$20,000
$80,000
2. Start socking away money aggressively
Next, since you're behind in your saving and investing, you'll need to make up for some lost time, as much as you can. The table below shows what's possible -- and how much you might amass over time:
Growing at 8% for
$7,500 Invested Annually
$15,000 Invested Annually
5 years
$47,519
$95,039
10 years
$117,341
$234,682
15 years
$219,932
$439,864
20 years
$370,672
$741,344
25 years
$592,158
$1,184,316
30 years
$917,594
$1,835,188
35 years
$1,395,766
$2,791,532
40 years
$2,098,358
$4,196,716
Data source: Calculations by author.
3. Delay retirement
Looking at this table, you might be disappointed in how much you can amass if you have only, say, 10 years until you retire. But look down one row and you'll see a larger sum. That points to the power of delaying your retirement.
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Sure, you might not want to, but you might need to. Even delaying by one or two years can make a meaningful difference, because for every year that you delay, you can save and invest more money -- and your portfolio will have another year in which to grow. Better still, your savings will need to support you for fewer years, and you may be able to stay on your employer's health plan longer, too, saving more money.
4. Delay claiming Social Security benefits
If you're delaying retirement, you can also delay starting to collect Social Security benefits. Each of us can start collecting as early as age 62 or we can delay until age 70. Starting early means smaller benefit checks -- though you'll collect many more of them. Delaying will make your benefit checks bigger. For most retirees, the best strategy is to wait until age 70. (Note that there are other ways to increase your Social Security benefits, too.)
5. Invest effectively
So -- how should you invest all this money you're so diligently socking away? Well, for long-term wealth-building, it's hard to beat the stock market. (Over short periods, it can give you a loss, so plan to be a long-term investor, only putting money you won't need for at least five, if not 10 years, in stocks.) The stock market has averaged annual returns of close to 10% over many decades, so be a little conservative and assume perhaps 8% average annual growth over your investing period -- though of course you'll likely average more or less.
You can invest in the stock market very easily by parking dollars in one or more simple, low-fee index funds -- such as:
Vanguard S&P 500 ETF (NYSEMKT: VOO)
Vanguard Total Stock Market ETF (NYSEMKT: VTI)
Vanguard Total World Stock ETF (NYSEMKT: VT)
The first will invest you in 500 of America's biggest and best companies, making up about 80% of the U.S. stock market's value. The second offers pretty much the entire U.S. stock market, and the third offers the world's stock market.
6. Get creative
A little time thinking and researching can turn up more ways to save more and/or spend less -- both now and in retirement. One strategy that will work for some people is relocating for retirement. Depending on where you live now, you may be able to spend far less living somewhere else. That can help your nest egg last longer. Other ideas include working part-time in your early years of retirement, getting a reverse mortgage, cashing out a life insurance policy, and possibly even taking in a boarder for a few years.
The $23,760 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.
One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.
View the "Social Security secrets" »
Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.
Source: “AOL Money”
