Key Takeaways:

Your 50s can be a powerful catch-up decade if you get clear on your numbers and consistently max out key levers like employer match, catch-up contributions, and automatic annual increases.
Improving cash flow (cutting inefficiencies, re-shopping insurance, and paying down high-interest debt) can free up meaningful dollars to redirect into retirement savings without major lifestyle sacrifice.
Coordinating tax-smart moves, an intentional investment approach, and timing decisions (like Social Security, housing, and retirement age) can dramatically improve your long-term retirement outcome in Minnesota.

Reaching age 50 can be a wake-up call for many folks who feel behind on their retirement savings. Between raising kids, paying a mortgage, covering college tuition, helping aging parents, and managing everyday spending, it’s easy for your retirement accounts to take a back seat. If that’s your situation, you’re not alone, and it’s not too late.

The good news? Your 50s can actually be one of the most impactful decades for catching up. Many folks see their income peak during this period, major expenses begin to wind down, and for the first time, the IRS lets you take advantage of catch-up contributions that weren’t available earlier. With the right strategies, insights, and support from a qualified financial advisor, you can still build a strong nest egg and retire with confidence in Minnesota.

Let’s walk through practical, high-impact ways to catch up on retirement savings, even if you feel behind.

Immediate Moves That Make the Biggest Difference

The most important step in catching up is getting clear on where you stand today. A solid plan doesn’t start with panic; it starts with understanding.

Before you can map out a clear retirement strategy, you first need to know your starting point. Using a retirement calculator or working with a financial professional can help you estimate:

Your total retirement income from investments, Social Security benefits, and pensions
The gap between your current savings and your retirement savings goal
Projected expenses in retirement, including Minnesota-specific costs like heating, property taxes, or potential winter travel
The likelihood you may need to delay retirement and how that affects your financial picture

Once you hit age 50, the IRS allows you to make catch-up contributions to most retirement accounts. These extra contributions are one of the most effective ways to accelerate your savings in your final high-earning years.

Common retirement account options include:

401(k), 403(b), and 457 plans offered through an employer
Traditional IRAs
Roth IRAs

Be sure to review the current IRA limit, 401(k) limits, and catch-up opportunities for the year. For the 2026 catch-up contribution limits, please check out our 2026 Important Numbers Guide.

If your employer offers a match, treat it as non-negotiable. Don’t leave free money behind; match dollars help your retirement funds grow faster.

One simple but often overlooked move: set automatic annual increases to your retirement contributions. If your plan allows 1% or 2% automatic bumps, put them in place now. You may barely feel the difference in your paycheck, but the long-term impact is substantial.

Finally, as kids graduate, debts are paid off, or promotions come through, direct that freed-up cash straight into savings. This decade often brings new financial breathing room; the key is making sure it goes toward your future, not just accidental lifestyle creep.

Strengthen Cash Flow and Cut Inefficiencies

One of the most practical steps you can take when you’re behind on savings is improving cash flow. It’s not about becoming frugal to the point of pain; it’s about eliminating inefficiencies that drain money without adding much value. This can be a powerful lever for boosting retirement contributions.

Start by reviewing your spending at a high level. With inflation in areas like groceries, utilities, and insurance hitting Minnesotans hard in recent years, a fresh look often reveals opportunities. Many people find that a handful of categories (dining out, travel, tech subscriptions, or “extra Target runs”) do the most damage, and trimming just those areas helps meaningfully.

Insurance is another area where you may be overpaying. Minnesota homeowners, especially, have seen premiums rise due to storm damage trends. Re-shopping home and auto coverage every few years can save hundreds or more.

If you’re carrying high-interest debt, make a plan for it now. Your 50s aren’t the time to let interest rates dictate your monthly cash flow. Whether you refinance, consolidate, or follow a deliberate payoff plan, the goal is simple: remove the drag and redirect those dollars into savings.

And don’t forget subscriptions. Most people have several that they barely use. A quick audit, once or twice a year, frees up cash with almost zero lifestyle impact.

Every dollar you free up is another dollar that can go toward your retirement accounts instead of unnecessary interest or monthly bills.

Make Tax-Smart Adjustments That Compound Over Time

Tax strategy becomes more important, not less, as you get closer to retirement. The right structure can stretch your savings significantly, especially in a state like Minnesota, where both state income taxes and federal taxes must be planned for.

Helpful tax-efficient strategies include:

Tax-efficient Investing

Certain investments are better suited for tax-deferred accounts, while others belong in Roth or taxable accounts. Simply placing investments in the right “locations” improves long-term after-tax returns without requiring extra risk.

Reconsidering Pre-Tax vs. Roth contributions

Many people drastically underestimate the role taxes will play in retirement, and adjusting your strategy now can create more flexibility later.

Considering Health Savings Accounts

HSAs often function as a “stealth” retirement account, giving you tax benefits on the way in, as the money grows, and when you use it for qualified healthcare expenses, which tend to increase as we age.

Exploring Roth Conversions

For some, especially those planning to retire before claiming Social Security, there is a valuable window of lower income where conversions can reduce lifetime taxes. For others, it may not be the best fit. Customized planning is important here.

Utilizing charitable strategies during high-income years

Charitable strategies like donor-advised funds can help manage taxes thoughtfully while supporting causes you care about.

Reassess Your Retirement Timeline and Lifestyle Variables

If you’re behind on your retirement goals, one of the most flexible and impactful tools you have is time.

Adjusting your timeline can:

Reduce the number of years you withdraw from your retirement funds
Increase the years you continue making contributions
Grow your Social Security benefits, especially if you delay beyond full retirement age
Provide additional tax planning options

You may not need to work full-time. Many folks transition into part-time roles or consulting work that allows them to ease into retirement while reducing portfolio pressure.

Your Social Security decisions also play a major role. Claiming early gives you a smaller benefit, while delaying grows your guaranteed income for life. Coordinating this with your other retirement income sources is a key part of your overall retirement planning strategy.

Other lifestyle variables, such as housing or travel, can also have a big impact on your ability to succeed in retirement. Housing decisions often have more impact on a person’s financial future than investment changes alone.

Consider whether you should:

Continue paying down your mortgage
Use home equity strategically (with caution)
Downsize to reduce monthly expenses
Move closer to family
Plan for Minnesota-specific housing needs, such as winter maintenance, energy efficiency, or single-level living

Investment Strategy Tune-Ups for Late Starters

You don’t need to overhaul your investments just because you’re in your 50s, but you do need to make sure your strategy is intentional.

Focus on:

Rebalancing your portfolio to maintain appropriate asset allocation
Reducing concentrated stock positions from employer stock or a single sector
Evaluating a gradual shifting toward a more conservative mix as you approach retirement, as needed
Reviewing fund choices, fees, and performance
Planning for sequence-of-returns risk by holding cash or short-term reserves for early retirement withdrawals

A diversified portfolio helps protect your growing nest egg from market volatility.

Protect What You’re Building: Insurance and Long-Term Security

Your 50s are the time to make sure you’re protected from unexpected financial shocks. Reviewing your insurance coverage and legal documents ensures your plan can withstand the unpredictable.

Consider evaluating:

Life insurance (to align with income, debt, and family needs)
Long-term care insurance, hybrid policies, or self-funding approaches
Disability insurance if you’re still in your peak earning years
Wills, trusts, powers of attorney, and healthcare directives
Beneficiary designations on IRAs, retirement accounts, and insurance policies

Protecting what you’ve built is just as important as growing your retirement funds.

FAQs About Catching Up on Retirement Savings in Your 50s

1. Is it too late to catch up on retirement savings at age 50 or beyond?

No. Many Minnesotans make their biggest progress between the ages of 50 and 65. Catch-up contributions, tax strategies, and better planning all help.

2. Should I pay off debt or increase retirement contributions?

There’s no universal answer. High-interest debt should be prioritized, but a blended approach often works best.

3. Do I need a financial advisor?

Many people benefit from working with a financial advisor or wealth management professional who can help with taxes, investing, and coordinating retirement timelines.

4. How much should I be saving now?

Many late starters aim for 20–30% of income, but personalized analysis is more accurate.

5. Should I change my investing strategy?

Possibly. Your time horizon, risk tolerance, and current savings level all matter.

6. Can delaying retirement really help?

Yes, sometimes more than anything else. Working even one or two more years can dramatically improve your financial outlook.

How We Help Minnesotans Build a Confident Late-Stage Retirement Plan

If you’re in your 50s and feeling behind, you don’t need to sort this out alone. Clerestory Advisors helps Minnesota retirees and pre-retirees by:

Clarifying your current financial picture and calculating your retirement gap
Designing a tailored catch-up strategy that aligns savings, taxes, investments, and timing
Modeling different retirement ages, Social Security strategies, and lifestyle scenarios — including Minnesota-specific cost factors
Providing ongoing guidance as markets shift and your life evolves

If you’re ready to create a plan that gives you clarity and confidence, I invite you to schedule a complimentary consultation call. Together, we’ll map out your path to a secure and enjoyable retirement right here in Minnesota.

Sources:

https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500

Liz Alf is the Principal of Clerestory Advisors and fee-only CERTIFIED FINANCIAL PLANNERTM located in Minneapolis, MN. She is a member of the National Association of Personal Financial Advisors (NAPFA), the Fee Only Network and Wealthtender. She enjoys serving clients with on-going financial planning and investment management services.