Real Life Planning: Can You Start Saving for Retirement at 50 (or Later) and Comfortably Retire at 62? (Yes!)

It isn’t too late! You can start retirement savings at 50 (55 or even later) and still retire comfortably by age 62. I know. Most people assume you need to start saving in your 20s or 30s to have any chance at a secure retirement. While early saving is certainly ideal, it’s not the only path. In fact, your 50s can be one of the most powerful decades to build wealth, if you take the right steps.

Start Retirement Savings at 50 or 55: Your 50s Are Years of Peak Earning and Diminishing Expenses!

By 50, many people are entering their peak earning years. Plus, the kids are (mostly) out of the house, the mortgage might be close to paid off, and big-ticket expenses like daycare or college are behind you. That means you finally have more financial capacity and more catch-up opportunities.

“Starting at 50 doesn’t mean you’re behind—it means you need a plan that makes the most of your next decade,” says Sarah Busch, CFP® professional and Manager of Boldin Advisors.

It’s time to catch up

The IRS agrees that your 50s are a great time to save. In fact, they offer special catch-up contributions for people 50 and older. In 2025, those 50+ can contribute up to $31,000 per year to a 401(k) ($23,500 base + $7,500 catch-up). That’s $62,000 per couple, per year—before even considering employer matches.

This is the decade when strategy matters most, and when small decisions can compound into big results.

Meet Mark and Eliza: A Catch-Up Success Story

When Mark and Eliza Thompson turned 50, they were financially stable but unprepared for retirement. “We had about $120,000 in old 401(k)s and IRAs,” says Eliza. “We figured we’d always have time to ‘get serious’—and then we blinked and turned 50.”

They had good jobs, Mark as a software engineer earning about $160K and Eliza working as a PR consultant at a small agency bringing in around $110K. With their two kids nearly through college and their mortgage nearly paid off, they decided to finally prioritize their own future.

“We weren’t panicking,” Mark says. “We were just determined to use the next decade really wisely.”

The Strategy: Waking Up, Maxing Out, Catching Up, and Growing Confident

Here’s how they did it:

1. Wake up call

With the kids out of the house, the Thompsons woke up to the reality that time was passing quickly and they realized that they didn’t want to work their entire lives. They wanted a future that prioritized themselves and their own interests beyond work. 

2. Maxed out contributions

Starting at age 51, they each contributed the maximum to their workplace 401(k)s – $31,000 apiece in 2025 and increasing slightly each year due to IRS adjustments. It was a lot, but with the cost of children eating up a lot less of their income and a few other economizing measures, it didn’t pinch their lifestyle too much.  

Over 12 years, this added up to:

• $744,000 in new contributions ($31,000 × 2 × 12 years)
• + $120,000 from employer matches (both had ~5% matches)
• Total new retirement contributions: ~$864,000

3. Smart investing

The Thompsons didn’t require any fancy investment strategies. They kept things simple: 

• 65% stocks in an index fund tracking the S&P 500
• 30% bonds
• 5% cash equivalents

They stayed the course through market ups and downs and averaged a 6.5% annual return—conservative but realistic for their risk profile. With compound growth over 12 years, their ~$864,000 in contributions grew to just over $1.1 million by age 62.

4. Right-sized their lifestyle

At age 55, they sold their large suburban home, netting an extra $250,000 after buying a smaller townhouse. They invested $150,000 of that gain into a taxable brokerage account and kept $100,000 in cash for flexibility.

• Downsizing for retirement

Retired at 62—With Confidence, Not Sacrifice

By the time they were 62, Mark and Eliza had built the following:

• $1.1M in retirement accounts
• $150K in a brokerage account
• $100K in emergency savings
• Paid-off home
• Projected Social Security benefits of ~$60K/year (combined) if they delayed until 67–70

They used the Boldin Planner to run dozens of “what-if” scenarios and felt secure about retiring early, even with some market volatility and future healthcare expenses built in.

“We didn’t have to live on beans and rice,” Eliza laughs. “We still took vacations and helped our kids. We just made smarter choices and used tools that gave us clarity.”

“Honestly, the Boldin Planner gave us the confidence to pull the trigger,” Mark adds. “It didn’t just show us what we had—it showed us what was possible.”

Started Late, But Living the Dream a Few Years Later!

Mark and Eliza now split their time between Portland and a small beach town in Northern California. They hike, travel, read, and enjoy part-time passion projects. Most importantly, they have real peace of mind about their life and money.

“We’re proof that starting at 50 isn’t too late,” says Eliza. “It’s just a different kind of journey—and with the right plan, it can be a beautiful one.”

Are You Ready to Start? 7 Steps to Get on Track for Retirement in Your 50s

If you are going to start saving for retirement at 50, you are taking a very important step. But, saving isn’t all you need to do. Here are seven steps that will put you on the right track to a secure and happy future:

Step 1: Take Inventory Without Shame

Look, we know it can be stressful to take inventory of your financial situation, but you’ll feel better once you do. The first step toward the life you want is to understand where you are financially:

• List your current income, expenses, debts, and assets.
• Estimate your Social Security benefit (use SSA.gov).
• Use a tool like the Boldin Planner to create a baseline retirement projection.

Reminder: You’re not behind. You’re just starting your plan now, and that’s what matters.

Step 2: Define Your Retirement Vision

Don’t just think “stop working.” Think:

• When would you like to stop working full-time?
• What kind of lifestyle do you want? (Travel? Part-time work? Relocate?)
• What does enough look like for you?

Use this information to define your future income and expenses. The Boldin Retirement Planner enables you to create different phases of spending and income. By defining these different phases of your life, you’ll get a truer picture of how much retirement savings you’ll need and when you can retire. 

Reminder: Knowing your future goals and how your retirement income sources will help define your savings target.

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Step 3: Eliminate High-Interest Debt

Before ramping up savings, clear credit cards and personal loans.

• Focus on debts with interest rates over 6–7%.
• Refinance or consolidate if possible.

Reminder: Every dollar not going to interest can be a dollar going toward your future.

Step 4: Max Out Retirement Contributions

One of the most effective things you can to do to start saving for retirement at 50 is to take full advantage of tax breaks:

• 401(k): Up to $31,000 annually in 2025 (if you’re 50+).
• IRA: Up to $8,000 annually (including catch-up).
• If you’re self-employed, look into SEP-IRAs or Solo 401(k)s.

Reminder: Even saving $2,500/month for 12–15 years can grow into $500K+ with modest growth.

Step 5: Invest for Growth (Not Fear)

You need your money to grow—this isn’t the time to go all cash:

• Aim for a diversified mix of stocks and bonds.
• Don’t chase risky returns, but don’t sit on the sidelines either.

Reminder: Index funds are a great, low-cost and highly effective way to own stocks.

Step 6: Reduce Lifestyle Creep & Consider Downsizing

You don’t have to give up everything, but:

• Assess your priorities and cut low-value spending.
• Consider downsizing housing, cars, or insurance costs.
• Every $100/month you save can become thousands in retirement.

Reminder: Downsizing your home can be a major unlock, both emotionally and financially.

Step 7: Extend Your Timeline Strategically

You don’t have to retire at 62:

• Every year you delay retirement adds to savings, reduces withdrawals, and increases Social Security.
• Working part-time or consulting post-retirement can bridge gaps.
• Delaying Social Security to age 70 boosts your benefits by up to 76% vs. claiming at 62.

Reminder: Social Security is an inflation-protected income source that is going to last as long as you do. Strategize the right age to claim benefits.

Final Thought: It’s Not Too Late—But It’s Time to Act

To start saving for retirement at 50 takes a great plan. It is about urgency, not panic. Many people build six-figure portfolios starting at age 50 or even 55. The key is to focus, prioritize, and use the tools and options available to you.

Want help building your catch-up plan?

The Boldin Retirement Planner is built for real people figuring this out in real time. The tool is a DIY resource designed to give you power and know how over your future. However, you don’t need to go it alone. We offer classes, coaching, and fee-only financial advice from a CFP® professional to complement the software.