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 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 would have been in your 30s or 40s.
Here’s one way to build 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. Once you free yourself from monthly interest payments, you can move on to the next step.
Save aggressively
With a short time frame, you’ll likely 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 monthly 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.
That might be enough for a bare-bones retirement, depending on your lifestyle. But if you want more flexibility, you’ll need to boost your income as well as cut expenses.
Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
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 high-skill side hustles like tutoring, interior design, public speaking or social media management could make a bigger difference.
For example, adding $1,000 more per month to your investments in Vanguard’s ETF could grow your 10-year nest egg from $691,220 to about $929,570.
When you’re playing catch-up, every extra dollar counts.
What to read next
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- Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
- Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
- How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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