50 With No Retirement Savings? Here's Why You're Not Doomed
Image source: Getty Images You'll need savings if you want to retire comfortably. Social Security should pay you something, but the average recipient today gets only about $23,000 a year. That might just cover your basics like food and housing expenses, especially if your home is paid off. But on $23,000 a year, you can mostly forget about extras. And after a lifetime of hard work, you deserve those extras.Alert: highest cash back card we've seen now has 0% intro APR into 2026 This credit card is not just good – it's so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes. That's why you need to start saving for retirement as soon as you can. But if you've gotten to age 50 without any long-term savings, you may be ready to panic.Here's the hard truth. It's not great to have no money saved for your senior years by age 50. As of 2022, 50-year-olds had a median retirement savings balance of $115,000, per the Federal Reserve. If you want to use that as a benchmark, it leaves you with some serious catching up to do.But you should also know that things aren't hopeless if you're 50 without money socked away for retirement. If you prioritize your savings from this point onward, you can set yourself up with a nice nest egg even if you're somewhat short on time.Your retirement savings can be salvaged There's a benefit to being 50 when saving for retirement -- you're allowed to make catch-up contributions to a tax-advantaged savings plan. That means you're allowed to contribute up to $8,000 per year to an IRA based on your age (the annual limit for savers under 50 is $7,000).If you're not in the habit of saving for retirement, it won't be easy to come up with $8,000 a year all of a sudden. But if you're willing to work a side hustle, you might manage to hit that goal. Self Financial reports that 45% of working Americans today have a side hustle, and that the average side hustle brings in $688 a month. If you're able to earn that much, it's enough to max out your IRA and leave you with a small amount of money left over. And if you don't have an IRA already, open one immediately. You can start with this list of the best IRAs to find the right one.From there, you'll want to invest your money so it grows nicely between now and when you want to retire. Let's say that age is 65. If so, you have 15 years to build your nest egg from $0. If you max out at an IRA at $667 per month for 15 years and your investments give you an annual 10% return, which is consistent with the S&P 500's long-term average, you'll end up with about $254,000. That's a nice sum of money to bring into retirement. Don't wait any longer to start saving for retirementIt can be hard to come to terms with having to first start building a retirement nest egg at age 50. But don't let that overwhelm you or, worse yet, lead you to give up. One of the best things you can do for your retirement is start funding that IRA right away. The sooner you do, the more time you give your money to grow -- and the more likely you are to close out your career with enough savings to make retirement something you can look forward to.Alert: highest cash back card we've seen now has 0% intro APR into 2026 This credit card is not just good – it's so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes. We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
Image source: Getty Images
You'll need savings if you want to retire comfortably. Social Security should pay you something, but the average recipient today gets only about $23,000 a year. That might just cover your basics like food and housing expenses, especially if your home is paid off. But on $23,000 a year, you can mostly forget about extras. And after a lifetime of hard work, you deserve those extras.
Alert: highest cash back card we've seen now has 0% intro APR into 2026
This credit card is not just good – it's so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
That's why you need to start saving for retirement as soon as you can. But if you've gotten to age 50 without any long-term savings, you may be ready to panic.
Here's the hard truth. It's not great to have no money saved for your senior years by age 50. As of 2022, 50-year-olds had a median retirement savings balance of $115,000, per the Federal Reserve. If you want to use that as a benchmark, it leaves you with some serious catching up to do.
But you should also know that things aren't hopeless if you're 50 without money socked away for retirement. If you prioritize your savings from this point onward, you can set yourself up with a nice nest egg even if you're somewhat short on time.
Your retirement savings can be salvaged
There's a benefit to being 50 when saving for retirement -- you're allowed to make catch-up contributions to a tax-advantaged savings plan. That means you're allowed to contribute up to $8,000 per year to an IRA based on your age (the annual limit for savers under 50 is $7,000).
If you're not in the habit of saving for retirement, it won't be easy to come up with $8,000 a year all of a sudden. But if you're willing to work a side hustle, you might manage to hit that goal.
Self Financial reports that 45% of working Americans today have a side hustle, and that the average side hustle brings in $688 a month. If you're able to earn that much, it's enough to max out your IRA and leave you with a small amount of money left over.
And if you don't have an IRA already, open one immediately. You can start with this list of the best IRAs to find the right one.
From there, you'll want to invest your money so it grows nicely between now and when you want to retire. Let's say that age is 65. If so, you have 15 years to build your nest egg from $0.
If you max out at an IRA at $667 per month for 15 years and your investments give you an annual 10% return, which is consistent with the S&P 500's long-term average, you'll end up with about $254,000. That's a nice sum of money to bring into retirement.
Don't wait any longer to start saving for retirement
It can be hard to come to terms with having to first start building a retirement nest egg at age 50. But don't let that overwhelm you or, worse yet, lead you to give up.
One of the best things you can do for your retirement is start funding that IRA right away. The sooner you do, the more time you give your money to grow -- and the more likely you are to close out your career with enough savings to make retirement something you can look forward to.
Alert: highest cash back card we've seen now has 0% intro APR into 2026
This credit card is not just good – it's so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
