You’re 50 With $0 Saved for Retirement. What Do You Do Now?

It’s best to start saving money for retirement as early as possible, even if you won’t actually be retiring for decades. But people who just turned 50 and haven’t been saving still have time to put money towards their nest egg.

Here are five steps you can take now to get you (and your wallet) closer to a comfortable retirement.

1. Assess your finances

The first move is to take an inventory of your finances. That includes your current income, monthly expenses, debt, workplace retirement plan contributions and the amount you expect to receive from Social Security. Consider which costs will increase in retirement. For instance, you may face more health care bills or need long-term care.

If you can, gauge how much longer you want to work, since that will determine how aggressively you need to save.

2. Increase your savings

Now it’s time to rev up your savings. If your employer offers a retirement savings plan, such as a 401(k), and matches a portion of your contributions, make sure you’re contributing at least enough to get that money. You can also save separately in an individual retirement account (IRA). Fidelity Investments recommends having eight times your income saved by age 60. That could mean maxing out contributions to your retirement savings accounts. When you turn 50, the IRS lets you make catch-up contributions, which means you’re allowed to put more away for retirement in tax-advantaged accounts than you could before you turned 50.

As you save and invest, it’s critical to avoid risky bets and speculative investments. Investors in their 20s and 30s have longer time horizons that can allow them to recover from market downturns. But older investors should focus on maintaining a well-balanced, diversified portfolio.

3. Trim expenses

Reduce how much you spend so you can save more.

While cutting expenses can start with ditching the daily coffee habit and canceling unused subscriptions, you will save the most money by prioritizing housing, transportation and high-interest debt, like what you can accumulate with credit cards.

4. Strategize around Social Security

While you can claim Social Security as early as 62, delaying when you receive benefits can mean getting more money. Waiting until age 70 means receiving the maximum benefit. That cash flow can help cover many expenses.

Some retirees live off their savings so they can wait to tap Social Security. Others strategize with their spouses so that the spouse who earns more delays taking Social Security while the other spouse receives benefits earlier.

5. Consider working longer

Keep in mind that retirement doesn’t have to mean never working another day in your life. Some people who walk away from full-time jobs in their 60s still pick up part-time jobs or side gigs to bring in some income.

If you can delay retirement several years, you may be able to save enough to have your dream retirement later.