Worried You're Behind on Retirement Savings? 3 Steps to Catch Up by Age 65

The average retirement savings balance among 55- to 64-year-olds was about $538,000 as of 2022, according to the Federal Reserve. But the median balance among that age group was only $185,000 as of two years ago. And with a discrepancy like that, it's fair to assume that $185,000 is more representative of older workers' savings balances than $538,000.

If your IRA or 401(k) plan balance is considerably lower, though, then you may be worried about retiring on time -- especially if you're already well into your 50s. The good news, though, is that it may still be possible to retire by your mid-60s if that's the time frame you're targeting. Here are some steps to catch up on savings by age 65.

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1. Claim your full employer 401(k) match

It's common for companies to offer a match in their retirement plans . Make sure you know what your 401(k) match entails, and make sure you're claiming every penny.

Some people opt out of their companies' 401(k) plans because of the high fees or limited investment choices. There's nothing wrong with saving for retirement outside of a 401(k). But you should contribute just enough to your 401(k) to get whatever match you may be eligible for.

2. Work a second gig

If your retirement plan balance is lower than what you'd like it to be, that may be because your paycheck is largely eaten up by recurring bills. In that case, boosting your savings could boil down to working a side hustle for extra money.

You won't be alone if you do. As of 2022, 36% of Gen X workers and 22% of baby boomers had a side hustle, according to data from software company Zapier.

The nice thing about working a second job is that you might find a gig you really enjoy. And if so, you may be motivated to keep doing it once you retire. That ongoing income could make it easier to leave the workforce on time without having to grind away at a full-time job well into your 70s.

3. Rethink your investments

If you're seven years away from retirement or less and you've already dumped your stocks, you may want to reconsider that approach. First of all, even if you're within a year or two of retirement, your portfolio shouldn't be devoid of stocks -- you should simply scale back so they're not taking up too much room in there. You need stocks in your pre-retirement years to boost your savings, and you also need them during retirement to help your portfolio continue to grow.

But if you're seven years away from retirement or more, you may want to use stocks as your primary investment. At that point, you have some time to ride out a potential market crash, and your portfolio might benefit tremendously from assets that can gain a lot of value.

You're not doomed to a late retirement because you're behind on savings. If you want to retire on schedule, claim your free money, work a side hustle for more money, and make sure your money is working for you.

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