Jun 24, 2026
Picture this. Steve, a 60-year-old retail worker, has managed to save about $5,000 in a Roth IRA while earning a low wage and struggling to get ahead. With retirement coming up quickly, Steve is wondering what many older workers also are worrying about: Is it too late to turn things around?
The reality is sobering but not hopeless. While catching up to traditional retirement savings targets may be out of reach, there are still some strategies he can take that can improve his retirement security over the next decade.
Millions of older Americans are approaching retirement with limited savings
Steve isn’t alone in his situation.
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According to the Federal Reserve’s most recent Survey of Consumer Finances, only 54% of Americans held retirement account assets in a 2022 survey.
Social Security remains the main source of retirement income for millions of retirees. The Social Security Administration estimates that over 72 million people received benefits in 2024, with 55% of the beneficiaries being women.
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Workers in lower-paying industries such as retail, hospitality and food service are especially at risk, where employer-sponsored retirement plans are often limited or nonexistent.
A recent Gallup survey found that about 69% of non-retired Americans worry they won’t have enough money to live comfortably in retirement, highlighting growing anxiety about rising housing, healthcare and everyday living costs.
Being 60 with only a few thousand dollars saved puts you behind, but it doesn’t mean you can’t start saving now.
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Here’s what you can focus on now
Instead of chasing risky investments and trying to build a six-figure nest egg overnight, you can consider homing in on some more reliable ways to boost your retirement security:
Pay down high-interest debt first: Credit-card balances charging 20% or more can drain your finances quickly. Prioritize paying off expensive debt.
Build an emergency fund: Even setting aside a few hundred dollars a month can help prevent unexpected expenses, such as a car repair or medical bill, from ending up on a credit card and adding to debt, according to the Consumer Financial Protection Bureau.
Maximize your Social Security strategy: For workers with limited retirement savings, Social Security may become their most valuable retirement asset. While benefits can begin at age 62, delaying benefits can significantly increase monthly payments.
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Look into government assistance programs: Programs like SNAP, utility assistance, housing support and healthcare subsidies could help lower monthly expenses and help stretch a limited budget further.
Consider adding income: A worker with decades of retail experience may qualify for supervisory, training or management roles. Even a small raise over the next five to 10 years can have an impact on retirement readiness.
Prepare for Medicare at 65: Healthcare costs are one of the biggest financial risks for older Americans. Medicare can help reduce those expenses and bring more predictability to a retirement budget.
If you can, stay working: If your health allows it, staying in the workforce can keep your paychecks coming, delay withdrawals from savings and potentially allow for larger Social Security benefits later.
The reality is that Steve, or anyone else in their early 60s with a similar amount saved for retirement is facing an uphill climb. But retirement success isn’t only determined by the size of a retirement account. Managing debt, maximizing benefits, controlling expenses and creating reliable income streams can make a significant difference, even for Americans who feel like they’ve fallen behind.
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Freelance writer with an economic development and consulting background.
