I’m almost 50 and don’t have enough retirement savings. What should I do? Don’t panic. Here are 6 solid ways you can catch up

Retirement planning is often seen as a distant concern — until it isn’t. In a recent post on X (formerly known as Twitter) that went viral, a 49-year-old confessed to having $0 savings for retirement and only $900 in their bank account.

And they’re not alone. Many Canadians in their 50s find themselves in a similar situation.

But here’s the good news: According to a report released by Money.ca, the average retirement savings for Canadians aged 55 to 64 is $833,696 — a significant increase compared to the $183,067 saved by those in the 45 to 54 age range.

This sharp rise suggests that many Canadians focus heavily on increasing their retirement contributions in their 50s to close the gap before they retire.

If you’re one of many who have fallen behind on your retirement savings, don’t panic: Here are six ways you can make meaningful progress towards this goal.

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Boost your savings by automating ‘catch-up’ contributions

Your 50s are prime earning years for most Canadians, which means you can boost your savings significantly.

In fact, the Canada Revenue Agency (CRA) allows individuals over 50 to make higher contributions to tax-advantaged accounts such as Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs).

These accounts can hold many assets such as cash, individual stocks, mutual funds or low-cost exchange traded funds (ETFs).

Whether you’re five or 15 years away from retirement, Wealthsimple Portfolios makes it easy to build a nest egg that can help reduce your reliance on government benefits later on.

Their pre-built portfolios are tailored to your retirement goals, risk tolerance and investment horizon, so whether you’re planning for a comfortable early retirement or steady growth over the long term, there’s a portfolio designed for you.

You can automate your contributions inside an RRSP or TFSA and let Wealthsimple handle the heavy lifting: managing risk, rebalancing your portfolio and reinvesting dividends.

Trusted by more than 3 million Canadians, Wealthsimple manages over $100 billion in assets and provides $1 million in eligible coverage through the CDIC for chequing accounts and CIPF for investments. Plus, as licensed fiduciaries, Wealthsimple's advisors must put your financial interests first.

It’s a simple, low-fee way to stay invested without constantly watching the markets. And when you open your first account and deposit at least $1 within 30 days, you’ll get a $25 bonus.

For a limited time, transfer $25,000 or more into an eligible Wealthsimple account and earn up to a 3% match, plus a chance to win a $3-million home. Offer ends March 31, 202

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Pay off high-interest debt and cut your expenses

Reducing your financial obligations now can significantly impact your retirement readiness. Focus on paying off high interest debt like credit card balances and personal loans, so you can free up more income for savings.

Consider consolidating your debt by taking out a single loan at a lower rate. This can both ease your interest costs and improve your credit score.

A better option is to consolidate your debt by taking out a single loan at a lower rate. This can both ease your interest costs and improve your credit score.

With Loans Canada, you can shop for the most competitive interest rates on personal and debt consolidation loans, since Loans Canada specializes in comparing rates offered by different lenders.

You don’t need a minimum credit score or annual income to receive personalized loan offers.

If you owe a substantial amount, you may also want to see if you qualify for a debt relief program to clear a significant portion of your debt.

You can get a free consultation with a debt relief expert who can work with you to help clear your debts and rehabilitate your credit with a plan tailored to your needs.

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Get expert help to maximize your investment returns

Once you've automated your catch-up contributions, you might consider getting expert help to refine your investment strategy. Based on your risk tolerance and investing horizon, you could consider a mix of dividend-paying stocks, alternative assets, mutual funds or bonds.

If you find yourself in need of some guidance along the way as you ensure your investments are working for you, consider using a tool like Moby. As a stock market research platform, Moby can simplify the process with curated stock picks and investing advice.

Plus, Moby provides personalized financial insights based on your unique goals, real-time market updates and investment research formatted in easy-to-understand reports so you can make informed decisions about your portfolio without being an investing wiz.

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Reevaluate your financial plan

By your 50s, you likely have a clearer picture of your retirement timeline and financial needs. So, it’s the perfect time to determine your target retirement age and desired lifestyle.

Will you travel? Downsize your home? Understanding your goals will help you estimate how much you need to save.

Look at your projected income from sources such as Old Age Security (OAS), the Canada Pension Plan (CPP), workplace pensions and personal savings. This will help you identify potential shortfalls.

That’s where an all-in-one money management tool can really help.

With YNAB, you can track spending and saving all in one place. Link your accounts so you can see a big-picture look of your expenses and net worth growth. You can prioritize saving for short or long term goals — like a vacation or a down payment for a house — with the app’s goal tracking feature.

If you want to pay debts faster, you can create personalized paydown plans to calculate how much interest you’d save if you topped up your monthly payments with a little extra.

The easy-to-use platform allows you to simplify spending decisions and clarify your financial priorities. Plus, you don’t need to add your credit card information to start your free trial today.

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Explore additional income streams

If your current savings are insufficient, look into ways to boost your income:

• Take on freelance work or a side hustle: Earning additional income can be a fast track to saving more.
• Sell unneeded assets: Downsizing and selling unused property or assets can provide a financial boost.
• Consider working longer: Delaying retirement by even a few years can significantly increase your savings and reduce the number of years you need to draw on them.

Delay benefits for bigger payouts

For Canadians nearing retirement, delaying government benefits such as CPP or OAS can lead to increased monthly payouts. For example:

• Delaying CPP past age 65 can increase payments by 8.4% per year (up to age 70).
• Waiting to take OAS benefits can result in a 0.6% increase per month (or 7.2% per year).

Bottom line

Catching up on retirement savings in your 50s is not just possible — it’s achievable with a well-thought-out plan. By taking advantage of tax-advantaged accounts, reducing debt, optimizing investments and boosting income where possible, you can bridge the gap and retire comfortably. Remember, the best time to start was yesterday, but the next best time is today.