Missed Saving for Retirement in Your 20s and 30s? Here's Your Game Plan.

Despite the late start, the situation is far from hopeless.If you didn't prioritize retirement savings in your 20s and 30s, you're not alone. During those two decades, you may have been focused on paying off your mountain of student loans, saving for a house, and building an emergency fund. It's easy to see how your IRA or 401(k) may have fallen by the wayside. The good news is that if you're new to your 40s, you might easily have two full decades or more to boost your retirement savings. Here's how to get on track and grow your nest egg substantially. Image source: Getty Images. 1. Cut expenses so you can start saving immediately If you're serious about catching up on retirement savings, it's important to free up money for that purpose immediately. Look at your budget and identify at least a few spending categories to reduce. The sooner you put money into a retirement account, the better. If you truly can't cut anything, you may want to consider a side hustle. Working even a few hours a week could get you started on IRA or 401(k) contributions. 2. Don't leave any 401(k) matching dollars on the table If you have access to a 401(k) plan through your job, find out what workplace match you're entitled to, and make sure to snag every single dollar of it. That's free money you can save and invest for your future years. 3. Avoid taking on large new expenses You may be getting to the point in your career where your earnings start to increase nicely. It can be tempting to take on new expenses when your income picks up, like a nicer car or the extension you've wanted to put on your house. But instead of doing that, funnel that money into your retirement savings so you're able to make good progress. 4. Invest your money strategically Being a couple of decades away from retirement gives you an opportunity to take on some risk in your portfolio. You can make the most of your upcoming IRA or 401(k) contributions by investing your money in the stock market, which has a long history of producing strong returns. And that doesn't mean you have to pick stocks individually if you're not comfortable doing so. Loading up on an S&P 500 (^GSPC +0.69%) ETF, for example, gives you broad exposure to the stock market without having to do a lot of research or legwork. Getting a late start to retirement savings isn't ideal, but it's also not a hopeless situation. Focus on boosting your savings rate and making smart spending and investing decisions so you can make up for lost time and work toward your goals.Read NextFeb 21, 2026 •By Christy BieberWhy Couples Often Leave Social Security Money on the TableFeb 20, 2026 •By Maurie BackmanDon't Need Your Required Minimum Distribution (RMD) Right Now?

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