Almost 40% of Americans Nearing 60 Have No Retirement Account - Here's What to Do If You're One

Retirement may be approaching quickly for millions of Americans without access to a dedicated workplace retirement plan.

Starting in your 50s or early 60s is far from ideal, but it doesn't mean you've run out of options. Several moves could still improve your retirement plan, from taking advantage of higher contribution limits to reconsidering when you stop working and claim Social Security.

Millions are approaching retirement without a workplace plan

New data from AARP shows that about 40% of private-sector workers ages 55 to 65 lack a workplace retirement plan. The problem extends further down the age range, with 41% of private-sector workers ages 45 to 54 also lacking a workplace plan.

Many households have struggled to find room in their budgets after paying for housing, groceries, healthcare, child care, and other necessities. Lack of access to employer-sponsored plans creates another barrier, while some workers who have managed to save have had to tap those accounts before retirement.

Payroll Integrations found in a 2025 survey that 38% of workers across generations had withdrawn money from their retirement accounts. Among Gen Xers and baby boomers, the share was 41%.

Start saving even if retirement is close

Reaching your late 50s without retirement savings may understandably leave you wondering whether starting now would make much difference. Even five or 10 years of contributions could still create another source of retirement income.

Workers with access to a 401(k) might begin there, particularly if an employer offers matching contributions. Those without a workplace plan may be able to use an IRA, while self-employed workers have options such as SEP IRAs and solo 401(k)s.

Catch-up contributions may accelerate savings

The tax code gives older workers additional room to save as their retirement date gets closer. Once you reach age 50, catch-up contribution rules allow you to put more into certain tax-advantaged retirement accounts than younger workers can.

For 2026, the regular employee contribution limit for most 401(k), 403(b), and governmental 457 plans is $24,500, with a standard age-50-plus catch-up contribution of $8,000. Workers ages 60 through 63 could potentially contribute even more to workplace retirement plans under the enhanced catch-up rules created by SECURE 2.0. Their higher catch-up limit is $11,250 in 2026, rather than the regular $8,000 catch-up.

Someone starting late may not be able to max out those limits, and doing so shouldn't come at the expense of necessities or high-interest debt. Still, increasing contributions gradually might make a meaningful difference.

An employee might start by contributing enough to receive their full employer match and then raise the percentage whenever their salary increases or another expense disappears.

Working longer could help in several ways

Delaying retirement isn't an attractive or realistic option for everyone, particularly workers dealing with health issues or physically demanding jobs. However, someone who could comfortably remain employed for a few additional years may strengthen their finances in several ways at once.

Continuing to work provides more time to save, shortens the number of years those savings need to support, and could delay the point when withdrawals begin.

Delaying Social Security could raise your check

With limited retirement savings, Social Security may become a much more important source of income, making the claiming decision particularly important.

Retirement benefits generally begin at 62, but claiming before full retirement age permanently reduces the monthly amount. Waiting beyond full retirement age increases the benefit through delayed retirement credits until age 70.

For workers born in 1960 or later, the full retirement age is 67. Waiting until 70 would increase the monthly benefit to 124% of the amount available at full retirement age.

Delaying isn't automatically the best choice. Health, employment, life expectancy, marital status, and immediate financial needs all matter. A worker who needs the income at 62 may have little choice but to claim. Still, those who could afford to wait may be able to lock in a larger monthly income stream for the rest of their lives.

Take a hard look at retirement expenses

Someone expecting retirement to cost roughly the same as their working years may discover opportunities to lower that number. Paying down expensive debt, reducing housing costs, or eliminating unnecessary recurring expenses before leaving work could reduce how much income you'll need later.

Housing deserves particular attention because it is often one of the largest expenses in retirement. Downsizing, paying off a mortgage, or relocating may substantially change the amount of savings required, although each option comes with its own costs and trade-offs.

Building even a small emergency fund might also help prevent an unexpected repair or medical bill from immediately pushing you into debt.

Social Security may need to do more of the work

If savings still fall short despite those steps, Social Security may need to cover a larger share of your retirement expenses. Social Security replaces only part of a worker's pre-retirement earnings, with the replacement rate varying by earnings level, which means someone relying primarily on benefits may need to adjust their expected retirement lifestyle.

Knowing your estimated benefit may provide a useful starting point. From there, compare expected Social Security income with housing, food, healthcare, transportation, taxes, and other likely expenses. Any gap shows roughly how much additional savings or employment income you'll need to generate.

Bottom line

Reaching your 50s or early 60s with little retirement savings creates a serious challenge, but giving up on saving could make the situation worse. The years that remain before retirement still provide opportunities to build savings, lower future expenses, and potentially increase guaranteed income by delaying Social Security when circumstances allow.

You may not be able to recreate the portfolio you could have built by starting at 25, but it is still possible to save money in retirement with focused action. Every additional dollar saved and every recurring expense reduced could make your finances more manageable when the paycheck eventually stops. 

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