Reaching age 60 with less retirement savings than expected can be discouraging, but it does not automatically mean retirement is out of reach. According to the report, the first step is to take a close look at spending and see whether there is room to increase contributions to an IRA or 401(k).
The article notes that people in their 60th year may be earning more than they did earlier in their careers, which can make it possible to redirect some income into savings. It also points out that 60-year-olds with a 401(k) can make a larger catch-up contribution than the standard amount available to savers age 50 and older. The piece says that even modest lifestyle changes, such as scaling back a vacation, could help raise retirement balances before work ends.
Other ways to close the gap
Another option is to delay retirement. The report says that working two or three additional years can create more time for last-minute IRA or 401(k) contributions and may also improve the overall retirement picture. It adds that some people may need to rethink their timeline, especially if they had planned to stop working at 65 or 67.
The article also suggests being open to a different retirement lifestyle if savings remain below target. Rather than treating a shortfall at 60 as a dead end, the report frames it as a signal to reassess spending, saving, and the timing of retirement so the transition can still be manageable.
Source: nasdaq.com
