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Most Americans would consider $1.5 million the “magic number” for retirement savings, according to a Northwestern Mutual survey. Unfortunately, many are falling short of that goal.
As of 2022, the median household net worth was just $176,500, according to the Census Bureau. Meanwhile, about 20% of adults over 55 have no retirement savings at all, the AARP reports.
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In other words, many people are approaching retirement with little to no savings and not much time to turn things around. If you’re over 50 or 60 with no nest egg, typical wealth-building strategies like career changes, long-term investing and slow-and-steady savings likely won’t get you to your goal.
But that doesn’t mean it’s impossible to retire comfortably. It just means the path is narrower and more difficult than it was in your 30s or 40s.
Here’s how to build your wealth on a faster timeline.
Eliminate debt
The only thing worse than having no savings is having a negative net worth. Without a financial cushion, your loans and credit card balances are propped up by your income, putting you in a fragile financial position.
That’s why the first step is tackling your debt.
Consider using the avalanche or snowball method to start knocking down your liabilities. The avalanche method targets your highest-interest debts first, while the snowball focuses instead on knocking off smaller debts one after the other. Once you free yourself from monthly interest payments, you can move on to the next step.
To pay down your debt more effectively, look for ways to trim your monthly budget, including your bills. Even an extra few hundred dollars a year could get you to your debt-free goal faster.
To trim expenses, consider looking for savings with OfficialHomeInsurance.com, where you can compare and contrast rates on your home insurance for free.
In under 2 minutes, OfficialHomeInsurance.com makes it easy to browse offers tailored to your needs from a list of over 200 reputable insurance companies.
Simply fill in a bit of information and quickly find the coverage you need at the lowest cost for you, with savings of up to $482 a year.
If you do manage to save, this could be the time to put those gains towards paying down your debts using either the avalanche or snowball method. While you’re saving money on home insurance, you could also look at whether your auto insurance is optimized for coverage and expenses.
OfficialCarInsurance.com helps you instantly sort through policies from car insurance providers in your area, including trusted names like Progressive, GEICO and Allstate. With rates as low as $29 per month, you can find coverage that suits your needs and potentially saves you hundreds of dollars per year.
To get started, fill in your information and OfficialCarInsurance.com will provide a list of the top insurers in your area.
Note that most providers allow you to change your plans right away, not just when your policy is up for renewal. Just make sure to watch out for any early cancellation fees.
Read more: Car insurance in America now costs a stunning $2,329/year on average — but here’s how 2 minutes can save you more than $600 in 2025
Save aggressively
With such a short time frame, you’ll need to make bold moves to build up your savings. That could mean cutting back on spending, downsizing your home or even relocating to a more affordable area. Saving as much as 50% of your income may seem extreme, but it can help you reach a modest retirement goal faster.
According to SmartAsset, the median income of someone between 45 and 54 is $1,336 per week, or $69,472 per year. Saving 50% of that gives you about $34,736 a year, or $2,900 per month.
Investing that $2,900 a month in a low-cost index fund like Vanguard’s S&P 500 ETF (VOO) could help it grow significantly. The fund has delivered a 14.55% annualized return since its inception. If that performance continues, you could have $691,220 in 10 years.
One of the easiest ways to invest is to open a self-directed trade account with SoFi. This DIY approach allows you to invest with no commission fees, plus you can get up to $1,000 in stock when you fund a new account.
SoFi is designed to help you learn investing as you go, with real-time investing news, curated content and the data you need to make smart decisions about the stocks that matter most to you.
If you prefer a hands-off approach, you could instead opt for an automated investing service like Acorns, which simplifies the process of setting aside extra funds.
Acorns automatically rounds up the price of each of your purchases to the nearest dollar and deposits the difference into a smart investment portfolio for you. This is an easy way to grow your wealth without even thinking about it, even after you retire.
It could also be a good idea to boost your investments by contributing more than just your spare change to speed up your investment journey, especially if you’re trying to catch up within the decade. If you sign up today, you can get a $20 bonus investment when you set up a monthly recurring deposit.
Side hustles
Starting a business or side hustle could help you increase your income enough to build a comfortable retirement within a decade.
It’s not an uncommon career choice. According to Hubspot, about 31 million Americans are entrepreneurs, representing 16% of the workforce. While building a business has risks, it also offers high potential and relatively low barriers to entry.
JP Morgan reports that 8.9% of new businesses reach $1 million in annual revenue within five years. But the Bureau of Labor Statistics says only about one-third of businesses survive past the 10-year mark.
If going all-in feels like too much, a side hustle may be a better option. It’s more common and less risky. Nearly 52% of workers say they have a side hustle to supplement their income, according to the Wall Street Journal.
Still, most side hustles won’t make you rich. A 2025 MarketWatch survey found the median side hustle brings in just $250 a month. Driving for Uber or delivering food might not get you to your retirement goal. But higher-skill side hustles like tutoring, interior design, public speaking or social media management could make a bigger difference.
However, one of the biggest side hustles for wealth building is real estate. Traditionally, property ownership has had a high barrier of entry thanks to the mounting price of down payments, or the life-disrupting nature of midnight maintenance calls over burst pipes.
The good news? Today, almost anyone can invest in real estate without the hassle of being a landlord.
Arrived, for example, allows you to invest in shares of rental homes and vacation rentals without taking on the responsibilities of property management or homeownership.
Arrived lets you buy fractional shares in a property you like from a curated selection of homes. From here, you can choose the number of shares you want to buy and invest in real estate with just $100.
You can also invest in real estate with the Arrived Private Credit Fund, which allows you to invest in short-term loans that are used to finance professional real estate projects. These projects can include property renovations, rehabs or new home construction projects managed by real estate professionals. The loans are secured by residential housing, and the fund generates cash returns by collecting interest payments on the loans and distributing them to investors every month.
With a minimum investment of just $100, you can tap into the potentially high yields of this fund, with a range of 7-9% return after fees and expenses.
Investing is the key way to boost your pre-retirement savings, and the sooner you start, the more time you have to generate potential returns. When you’re playing catch-up, every extra dollar counts — whether you’re saving on insurance or putting your first $100 towards investing in real estate.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
