Strategies for a successful retirement

Retirement can feel like a distant dream — until suddenly it isn’t. According to Fidelity Investments, by age 67 you should ideally have saved 10 times your annual income to maintain your lifestyle in retirement. For the average earner aged 55 and older making around $56,500 per year, that means a target of roughly $565,000. Some experts even suggest aiming for double that amount.

Yet reality tells a different story. Many baby boomers and older workers are falling significantly short. A major Transamerica Center for Retirement Studies survey reveals that the median retirement savings for baby boomers sits at just $144,000, with nearly half worrying about outliving their money.

If you’re approaching retirement and feeling behind, you’re not alone — and it’s not too late to take meaningful action. Here are five proven steps recommended by retirement experts to strengthen your financial future.

1. Calculate What You Actually Need

Too many people guess at their retirement needs instead of calculating them. Start by estimating your future expenses based on your current lifestyle. Write down expected monthly costs for housing, healthcare, food, travel, and hobbies. Factor in inflation, longer lifespans, and potential long-term care expenses.

Use free online retirement calculators from trusted sources like Empower or Fidelity. These tools can help you see the gap between what you have saved and what you’ll likely need. Being honest about your numbers is the first step toward closing the gap.

2. Extend Your Working Years Strategically

Full retirement at 65 is becoming less common — and that can be a good thing. Working longer, even part-time, is one of the most powerful ways to improve your retirement outlook. You can continue earning income, delay claiming Social Security (which increases your monthly benefit), and give your savings more time to grow.

Stay competitive by updating your skills, networking, and exploring flexible or passion-driven roles. Many people successfully transition into consulting, part-time work, or entirely new fields they enjoy. Phased retirement — gradually reducing hours while staying employed — can provide both income and purpose.

3. Create a Written Retirement Strategy

Only a small percentage of people have a formal written retirement plan. Putting yours in writing makes it far more likely to succeed. Your plan should include:

Treat your home as a retirement asset. Many people unlock significant value by selling and moving to a smaller property or using home equity wisely.

4. Maximize Catch-Up Contributions and Tax Breaks

If you’re age 50 or older, take full advantage of “catch-up” contributions. As per 2026 rules, you can contribute an extra $7,500 (or more depending on the year) above standard limits to your 401(k) or IRA. These extra contributions can significantly boost your nest egg in the final years before retirement.

Also explore the Saver’s Credit — a tax credit available to lower- and middle-income workers who contribute to retirement accounts. Many people miss these opportunities simply because they’re unaware of them. Review your options with a tax professional to make sure you’re not leaving money on the table.

5. Get Professional Help

Financial planning can feel overwhelming, especially later in life. Working with a trusted financial advisor can provide clarity and accountability. Advisors can help optimize your investments, minimize taxes, plan for Social Security, and create a sustainable withdrawal strategy.

If a full-service advisor feels expensive, consider newer, more affordable options such as robo-advisors with human support, financial coaching platforms like The Financial Gym, or low-cost advice services from major brokerage firms.

Bottom Line

Falling short on retirement savings is common, but panic is not the answer. The key is taking proactive, practical steps now. Start by understanding your real numbers, look for ways to earn longer, build a clear plan, use every tax advantage available, and seek guidance when needed.

Every extra dollar saved and every year you continue working compounds powerfully in your favor. With focused action, you can still build a secure and comfortable retirement — even if you’re starting later than you hoped.

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