Retirement is something many Americans have planned for decades and hope to achieve. Unfortunately, according to a recent Vanguard report, only 40% of Americans ages 61 to 65 are ready to retire. The remainder of those in their 60s will rely heavily on Social Security to support themselves in retirement.
Being in poor financial shape in your 60s is worrisome, but there’s usually time to recover. If you’re in your 60s, here are four ways to get you on track for retirement.
See also 50 Habits to Help You Prepare for a Comfortable Retirement.
Effective planning is challenging if you don’t know where you stand. Now it’s time to take stock. Calculate your savings, income sources and expenses, combined with determining what you need to maintain a comfortable retirement lifestyle.
Part of that process may include downsizing or relocating to reduce costs. It may also be necessary to delay receiving Social Security benefits as long as possible.
According to the Social Security Administration, delaying benefits can increase your monthly benefit by 8% for every year you wait past full retirement age (up to age 70). This could bring in a lot of money. Consider speaking with a trusted financial advisor to develop your plan.
Read more: Here’s what retirees are wasting the most money on in 2025 — and how to avoid it in 2026
Check out: 5 Smart Ways for Retirees to Make Up to $1,000 a Month from Home
The IRS allows Americans over age 50 to make catch-up contributions to retirement accounts. If you have an income and can afford it, this can be a great way to save more for retirement if you qualify.
If you participate in a 401(k) plan, those over age 50 can contribute an additional $7,500 in 2025, for a total of $31,000. For those with a traditional or Roth IRA, the IRS allows those over age 50 to contribute an additional $1,000, bringing the total possible contribution to $8,000.
Even a few years of maximum contributions can add up, especially when you factor in tax benefits and compound growth.
High-interest debt can strain any budget, especially for those who are approaching retirement and preparing to live on a fixed income. Nearly half of Americans over the age of 50 have credit card debt, according to the American Association of Retired Persons (AARP). Paying off debt before retirement is critical and can reduce the amount of savings you may need.
Likewise, unnecessary spending can drain your retirement budget. Review your budget to identify possible budget leaks, such as unused subscriptions or excessive dining out. Cut expenses where possible and use the money you save to pay down debt or build wealth.