As we age, we accumulate memories — and usually a few regrets, too.
For many people facing retirement, those regrets are related to financial decisions made years or even decades earlier.
More than 80% of Gen Xers (born 1965-1980) and boomers (born 1946-1964) regret not starting to save or participate in their employer-sponsored retirement plan earlier in their working lives, according to a 2025 survey by Nationwide Retirement Institute (1).
Even those who did start saving early often wish they had taken a different approach. More than 80% wish they’d focused on protecting their savings from market volatility or converting assets into sustainable retirement income, according to the survey. (2)
Many Gen Xers and younger boomers are in their peak earning years and final accumulation phase before retirement. But if they feel behind on their goals, they may be paralyzed by fear rather than taking advantage of the tools available to them.
Still, starting late does not mean it’s hopeless.
The Nationwide Retirement Institute survey found that 54% of Gen Xers and 39% of boomers don’t fully understand how compounding works and more than half believe their 401(k) will provide a stable monthly income similar to a paycheck.
If you’re unclear on investing basics or how your 401(k) withdrawals will work in retirement, MyMoney.gov offers financial literacy resources, as do non-profits like the Khan Academy (3). There are also many personal finance books, blogs and podcasts. You could also talk to a reputable financial planner.
Next, take stock of your current situation. American adults believe they’ll need $1.26 million to retire comfortably, according to a 2025 survey by Northwestern Mutual (4).
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Yet 46% of Gen Xers surveyed and 56% of boomers believe they’re financially prepared for retirement. Meanwhile, 56% of Gen Xers and 40% of boomers say it’s at least somewhat likely they’ll outlive their savings.
Those concerns are understandable. Gen Xers have an average 401(k) balance of $192,300 and an average IRA balance of $103,952, while boomers have an average 401(k) balance of $249,300 and an average IRA balance of $257,002, according to Fidelity Investments (5).
To build a realistic catch-up plan, you need a clear understanding of your current finances and how far away you are from your retirement goals. Catching up may feel impossible, but there’s still time even if you’re in your early 60s. After all, you may still have several years or even a decade of compounding to work in your favor.
You might consider delaying retirement to give yourself more time to save and allow your investments to grow. Taking Social Security later can also increase your monthly benefit, which may reduce the amount you need to draw from savings.
There are practical steps you can take today, such as maxing out your retirement accounts, particularly those with employer matching and making catch-up contributions.
For 2026, the annual contribution limit for employees who participate in a 401(k), 403(b), governmental 457 plan or the federal government’s Thrift Savings Plan is $24,500. The annual limit for IRA contributions is $7,500 (5).
If you’re 50 or older, you can make a catch-up contribution of $8,000, for a total of $32,500. If you’re 60 to 63, you can make an extra catch-up contribution of $11,250, for a total of $35,750.
A new permanent rule also applies beginning in 2026. If you’re 50 or older and your Federal Insurance Contributions Act taxable earnings were $150,000 or more in the previous year, any catch-up contributions to your 401(k) must be made to a Roth 401(k).
That means those contributions will be made with after-tax dollars rather than pre-tax dollars. However, withdrawals from a Roth 401(k) that meet the five-year rule are tax-free, unlike withdrawals from a traditional 401(k).
Generic numbers from surveys can provide a useful starting point, but may not reflect your personal situation. The amount you’ll need to save depends on when you plan to retire, where you want to retire and how you want to live during those years.
A qualified financial advisor can run projections based on where you are today and where you want to be. They can help you create a plan and position your portfolio for growth while accounting for your age, goals and risk tolerance.
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Nationwide (1, 2); Khan Academy (3); Northwestern Mutual (4); Fidelity (5); IRS (6).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
