Is It Ever Too Late to Plan for Retirement?

Years of diligent saving and planning are generally a prerequisite for a comfortable retirement. But what if you haven’t saved anything and, with little time left, realize you have no plan? Is it too late or can you still take meaningful steps toward financial security?

In this article, we’ll examine whether there’s a “point of no return” when it comes to retirement planning. We’ll also include insights from financial advisors on how to take strides toward your post-working life and tips to avoid the dilemma altogether.

How Late Is Too Late?

Picture this scenario: You’re 55 years old, with little to no savings set aside for retirement. The idea of leaving the workforce without a plan feels daunting, and it’s hard to know where to start. Still, you’re determined to take steps toward a more comfortable retirement.

The above scenario, a common reality for many approaching their later years, raises the question: Is it ever too late to begin planning? Fortunately, financial advisors agree that while starting late might pose challenges for you, there’s always time to act toward achieving your financial goals.

“I don’t believe there is a ‘point of no return’ when it comes to retirement planning. I truly believe that it is ‘better late than never,’” says Ty Powell, a financial advisor at Florida Financial Advisors. Similarly, Chad Gammon, CFP^®, owner of Custom Fit Financial, emphasizes that there’s “never a true ‘point of no return.’” Instead, he explains that it’s important to focus on what you can control, such as your “spending, savings, and investment choices,” rather than dwelling on what you could’ve done differently.

Challenges from Delaying Retirement Planning

While you can still plan for retirement after years of delaying it, there are several challenges that can arise. The primary obstacle is that you lack much time to grow your funds with compound interest. This can limit you to more aggressive investment or savings strategies, impacting your way of life and how much risk you may need to take on.

Steve Sexton, CEO of Sexton Advisory Group, highlights that, while trying to catch up, “you’ll have to utilize more drastic tactics to get closer to your retirement goals,” which can mean “carving out a larger percentage of your income to set aside for retirement.” He adds that you might have to make tough sacrifices, such as “selling property you didn’t expect to let go, downsizing to a smaller place, moving to a lower-cost city, taking on a second job, and accepting that you’ll be working longer than you expected.”

Another obstacle, according to Jay Zigmont, PhD, CFP^®, founder and CEO of Childfree Wealth, is being able to afford long-term care. An assisted facility, for example, costs about $5,350 on average according to a 2023 Genworth Study. “If you start planning in your 60s, long-term care insurance may be cost prohibitive or even unavailable depending on your health,” he explains. These costs, unfortunately, could derail any retirement savings you had if you must pay them out of pocket.

Starting retirement late presents a variety of challenges; however, it doesn’t mean you can’t take meaningful strides to plan for the future. Instead, it requires you to shift your strategy and accept that there are some obstacles to overcome and prepare for with help from a qualified financial advisor.

Strategies to Catch Up on Retirement Savings

While planning for retirement late is an uphill climb, there are steps you can take to put yourself in a better position. It starts with a psychological shift, both into believing it’s possible and changing your relationship with money, which can propel you forward. Then, you can adopt tangible financial strategies to play catch-up and progress toward your goal.

1. Shifting Your Mindset

One of the biggest hurdles to overcome isn’t just financial, but mental. Before you can make progress toward your goal, it’s important to shift your mindset. If you don’t have much saved for retirement, you may be stressed, worried, or feeling regret or frustration over what got you into the situation. This, coupled with old habits, can make the situation even more difficult to climb out of.

Making progress means shifting your mindset to a realistic but encouraging perspective. While your situation is stressful, you can take solace in the fact that you’re making positive changes, whether that means committing to saving more, cutting unnecessary expenses, or contributing to tax-advantaged retirement accounts.

Powell explains that, above all, “starting late is better than never” when it comes to retirement planning. “Don’t underestimate what can be accomplished with a specific goal, a detailed plan, and a focused mindset,” he adds.

Another crucial detail is to unlearn potential habits that may have gotten you into financial trouble and replace them with positive, constructive ones. For example, avoiding high spending in favor of a monthly budget takes discipline that must be practiced. Additionally, while money may have been a source of stress, thinking of it as something you can control and keep track of can empower you to make positive changes.

2. Catch-Up Contributions

If you’re over the age of 50, you’re able to make catch-up contributions to tax-advantaged retirement accounts, such as a 401(k) or Roth IRA. This allows you to contribute slightly more than the normal amount, allowing you to accelerate the balance within the accounts. Below are the catch-up contribution limits for common retirement vehicles, as of 2025:

• 401(k) – $7,500
• 457(b) – $7,500
• Roth IRA – $8,000
• Traditional IRA – $8,000

3. Making Financial Sacrifices

Having enough to save and invest or pay off debt—especially aggressively at this point in your life—requires making tough financial sacrifices. This might mean cutting discretionary spending dramatically or even eliminating certain expenses altogether to prioritize your future. For instance, you could reduce dining out, downsize your home to lower housing costs, or put off non-essential purchases like new clothes or vacations.

While these changes may feel restrictive, they can help you free up more to save and invest toward the future. Every discretionary expense comes with an opportunity cost, the potential growth it could generate in a retirement account through compound interest. By prioritizing saving today, you’re setting yourself up better for the retirement you want.

Balancing Realistic Expectations with Encouragement

As you plan for retirement, even after delaying it for years, it’s important to face the consequences of starting late, while also understanding there’s still progress to be made. By waiting, you’ll likely have to make compromises, like working longer, saving more aggressively, or cutting spending. However, keeping a positive mindset and understanding this reality from the beginning can keep you on track.

Steve Sexton, an experienced financial advisor, shares how he helps clients gain perspective and build a plan that works for them:

For many of my clients, having a clear understanding of where they stand financially and having a realistic plan to get to where they want to be is incredibly empowering. It is critical that you arm yourself with this knowledge by doing a deep dive yourself or working with a finance professional – without this clarity and clear plan of action, you’ll continue to feel aimless and unsure whether your money actions are making a difference. From there, consistency and sticking to the plan is key. Once you start building momentum, this often provides more motivation to keep going.

If you’re just getting started and don’t know where to turn, it may be beneficial to speak with a financial advisor. They can help you gain the perspective and clarity you need to act, such as setting realistic goals, saving, and investing. This free matching tool, after a brief quiz, can connect you with a vetted fiduciary professional who suits your needs.

How Young People Can Avoid This Situation

The best way to avoid the stress of playing catch-up with your savings is by preventing the situation from happening to begin with. If you’re young, taking proactive steps to save for retirement now can pay big dividends down the road. Funds you invest now can grow for decades through the power of compound interest.

“The key is to start as young as possible and I also like to recommend automating your savings and increasing on a yearly basis. This helps avoid lifestyle creep,” notes Gammon.

Additionally, Sexton explains that, as a young person, knowledge is power. “To younger generations, retirement planning is often seen as boring or something to worry about in the future; I recommend shifting this mindset and looking at it as paying your future self first,” he says. He also encourages people to keep up on “what options are available,” whether that means “speaking with your HR department to get a better idea of what retirement vehicles and benefits are available to you or staying up to date on personal finance news and podcasts.”