20% Of Adults Over 50 Have No Retirement Savings. Here’s What To Do

Landing that first job after graduation is exciting. Suddenly, you have real money in the bank to buy what your childhood allowance could only dream of. But then life happens. You get promoted, maybe married with children, and before you know it, retirement is closer than those carefree “work hard, play hard” days ever were.

One day, you wake up in your 50s and realize retirement is right around the corner. Questions start piling up: Have you saved enough? Should you adjust your investment risk? Is there still time to catch up? The good news is it’s never too late to take control and set a stronger course for your future.

“In my commentary on the planning aspect, talking to somebody and mapping this out and understanding all the parts and pieces, honestly, don’t be embarrassed that you’re not there yet,” Genevieve George, CPA, CFP, CFE, CDFA, senior wealth advisor and principal at Pelican Financial Planning and Wealth, states during a phone interview. Many people feel embarrassed about their lack of knowledge about financial planning or about comparing themselves to their peers who have saved more.

An AARP survey revealed that 20% of adults over 50 have no retirement savings at all. Meanwhile, 61% in this age group are worried they won’t have enough to support themselves during retirement. Even among those actively saving, only 40% of men believe they’re putting away enough. CNBC reports that 67% of 55-year-olds fear outliving their savings. On top of that, many Americans at 55 have less than $50,000 in median retirement savings.

The numbers may feel daunting, but they don’t have to define your future. Whether you’re playing catch-up or fine-tuning an existing plan, there are practical steps you can take today to build confidence and security in your retirement strategy.

Be Brave And Ask Questions

It’s easy to feel ashamed or overwhelmed when looking at your financial reality in your 50s. But as George points out, embarrassment is one of the biggest barriers to getting on track.

“Don’t be embarrassed to say out loud, ‘I don’t think I’ve saved enough,’” she says. Many people avoid sharing their full financial picture out of fear of judgment, even though this honesty is crucial to making a real plan. One of George’s clients, for example, was retiring with thousands of dollars in credit card debt. This amount could have been covered with assets, but the shame to admit it made it worse.

George emphasizes that these are your life savings. You have every right to ask questions and fully understand what you have and how it’s working. In your 50s—often your peak earning years—you have an opportunity to make smart moves and set yourself up for the next stage. It starts with being brave enough to face the numbers and take control.

Reevaluate Your Risk—One Size Doesn’t Fit All

In your 50s, the investment playbook you used in your 40s might no longer serve you. Jason Bayuk, CFP, financial advisor , financial services representative at Barnum Premier Client Group, stresses the importance of revisiting your asset allocation and risk tolerance as you approach retirement.

Unlike your younger years, when there was time to recover from market dips, your focus now should be on protecting what you’ve built while still allowing for growth.

“Your risk tolerance should be unique to you and what your needs are, and more specifically, the risk tolerance that you have should revolve around the job description of what you want those dollars to do for you,” he explains. “Each bucket of money that you have in your life should have a specific job description, and that job description will ultimately impact how those dollars should be invested.”

He suggests thinking of your savings in different “buckets,” each with its own purpose and timeline. Money needed in the first years of retirement should be more conservatively allocated, while funds for later decades can take on more risk to keep growing.

Prepare For The Unexpected

Even the most carefully crafted retirement strategy can be upended by unexpected events. Bayuk emphasizes the critical importance of estate planning as part of any retirement preparation.

“Although you can have the perfect retirement plan that’s set up financially, unexpected events may happen that could potentially derail you,” he warns.

Estate planning goes beyond crafting a will. It also includes essential documents like healthcare proxies, durable powers of attorney and HIPAA authorizations. These protections ensure that if something happens to you, your wishes are carried out and your loved ones are shielded from unnecessary financial and legal complications.

People in their 50s need to think beyond just growing their savings and start planning how they’ll use that money. A big part of that is tax diversification. He shares, “It’s important to have diversification amongst the different taxation of investment strategies, making sure that you have the correct balance between taxable accounts, tax-deferred accounts andtax-advantage accounts such as Roth.”

Get Real About Your Spending Habits

Many people assume they’ll spend far less in retirement, but George warns against this common misconception.

“They’re about to have 40 plus extra hours in a week, so their spending might not actually be [what they think]” she explains. The reality? Lifestyle habits are deeply ingrained, and cutting expenses overnight is much harder than it sounds.

“Some people think, okay, I’m going to retire, but I can live on less,” she says. “And if you haven’t lived on less for the last 15 years, it’s going to be drastic.”

Instead of assuming you’ll naturally downsize your lifestyle, analyze where your money really goes and then create a realistic budget; an honest budget can prevent you from being blindsided and help ensure your retirement savings match the life you want to live.

What To Do If You’re Starting Late

If you’re in your 50s and feel behind, don’t panic. Here’s how to get moving:

• Get organized first—Take a full inventory of your finances. List your assets, debts, income and expenses. As Bayuk advises, start by understanding exactly “what’s happening in your financial world.”
• Create a clear budget—Separate your “needs” from your “wants.” A realistic budget helps you see where you can redirect money toward savings without derailing your lifestyle.
• Maximize retirement contributions—Start contributing as much as possible to retirement accounts like a 401(k) or IRA; gradually increasing contributions, even just 1% at a time, makes it more manageable.
• Envision your retirement lifestyle—Define what retirement looks like for you: Will you downsize? Work part-time? Move to a lower-cost area?
• Start now, no matter what —Small steps make a big difference over the next decade. The key is to take action today rather than waiting for the “perfect” moment. Seek advice from a financial advisor.

“Ideally, in a perfect world, all of the saving strategies that you’d have would be systematic, automatic,” Bayuk concludes. “Saving strategies are the best way that we save.”

By Cheryl Robinson, Contributor