Turbocharging Your Golden Years: 5 Ways to Catch Up on Retirement Savings

For many Americans, retirement savings often fall short of the benchmarks suggested by financial experts. However, there are several "catch-up" strategies available to turbocharge a portfolio in the final years of a career. Catch-up contributions for those aged 50 and older allow for additional deposits into 401(k) and IRA accounts beyond standard limits, providing a powerful tool for those who started late.

Benchmarking is a useful, if sometimes stressful, part of the process. Average and median retirement savings vary significantly by age, and knowing where one stands relative to peers can serve as a wake-up call. To protect these savings from a shaky economy and market volatility, investors are encouraged to diversify their 401(k) holdings across a mix of the largest and most stable retirement funds, rather than chasing high-risk trends.

Protecting the purchasing power of those savings is another primary concern, especially in inflationary environments. Inflation-proofing a retirement doesn't necessarily mean cutting costs; it involves choosing investments that historically outpace rising prices, such as equities and Treasury Inflation-Protected Securities (TIPS). By combining aggressive catch-up contributions with a defensive, inflation-aware investment strategy, workers can significantly improve their financial outlook even with a late start.