Is it too late?’: I'm 52 and recently separated with only $60K in a 401(k) and no other savings — what can I do to ensure I have a financially secure retirement?

Reevaluate your fixed expenses

A survey from investing firm Schroders showed that 46% of Americans who participate in a workplace retirement plan expect to have less than $500,000 saved by the time they retire. This, despite the fact they also believe it will take $1.2 million to retire comfortably.

Often, when people panic about their retirement savings they start looking for little ways they can make cuts to their monthly expenses.

Many think that, if you give up weekly restaurant meals and daily lattes, you can squirrel away enough money for your golden years. Unfortunately, that's rarely the case.

There's only so many small cuts you can make, and sustaining them over a few decades is difficult. Instead, re-evaluating some fixed expenses is often the better move. This is especially true if you've just separated and are undergoing a major life change anyway.

Maybe you can downsize your home now that your partner is gone. Or, consider switching out your fancy new car for a cheaper used model.

If you can make these kinds of significant changes, you’ll likely only have to do it once, and it can help to free up a large chunk of money that you can set aside for your retirement years.

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Maximize retirement contributions

Whether you do it by downgrading on fixed expenses or creating a strict budget, you need to start by putting retirement savings first.

If you're 52, let’s say, with $60,000 in savings and you want to retire at 65, you'd need to stash away roughly $2,700 per month over the next 13 years to end up with a $1 million nest egg (assuming a 10% average annual return).

If you haven’t already, start contributing to tax-advantaged retirement accounts. Luckily, the IRS allows you to make catch-up contributions once you hit age 50.

For example, you can add an additional $7,500 beyond the standard limits for a 401(k), or contribute another $1,000 to a Roth IRA.

Once you’re over the age of 55, you can also make catch-up contributions to your Health Savings Account (HSA) to the tune of $1,000 over the annual contribution maximums each year.

Consider working beyond retirement age

Depending on your financial situation, you may need to consider working a few more years than you’d originally planned — but you wouldn’t be alone.

According to Fidelity’s 2024 State of Retirement Planning study, 57% of Americans plan to continue working in retirement — at least part-time.

That part-time work can even include a side hustle, so you can set aside the extra cash into savings or investments. Consider dog walking, selling handcrafted goods online, ride sharing, childcare, or signing up for paid surveys.

Working longer also allows you to delay your Social Security.

For each month you work beyond a designated full retirement age (67, if you're 52 today) you'll earn a benefits increase until you turn 70. Because your Social Security benefits grow by 8% for each year you delay claiming it, your benefits will have grown 24% in those three years.

By saving aggressively, considering a delay in retirement, and creating a budget, you can turn things around post-divorce and still have enough savings shored up to enjoy your golden years.