No Retirement Savings by 50? Here's Your Game Plan.

Key Points

• If you don't have savings for retirement by 50, it's time to start making changes.

• That could mean reducing spending and prioritizing IRA or 401(k) contributions.

• Working longer may be something to consider, too.

• The $23,760 Social Security bonus most retirees completely overlook ›

A lot of people don't realize how badly they need retirement savings until they start reading up on Social Security. Only then do they learn that those monthly benefits will only replace about 40% of an average earner's pre-retirement wages.

Most retirees need about 70% to 80% of their former paycheck to cover their senior living costs without too much stress. So Social Security alone clearly isn't going to cut it -- especially since benefit cuts are a possibility.

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That's why it's so important to save for retirement on your own. But recent AARP data found that 20% of Americans ages 50 and over have no retirement savings whatsoever.

If you're 50 without any money saved, don't panic. It's not an ideal situation, but it's salvageable. Here's what to do.

1. Start saving some amount immediately

Some people might tell you that if you're 50 with no retirement savings, it's time to start maxing out your IRA or 401(k), including making catch-up contributions. But if you're not in the habit of funding one of these accounts, then going from saving $0 to maxing out probably is not realistic.

A better bet? Save something starting now. It could be $50 this month, $75 the next, and $100 the month after that. The sooner you put some money into your IRA or 401(k) plan, the sooner it can start growing.

2. Try to cut some spending

By age 50, you've probably been working a good number of years and are used to a certain lifestyle. So making major spending cuts may not be something you're eager to do.

You don't necessarily have to cut back on every single thing you find enjoyable, nor do you automatically have to sell your 2,000-square-foot home and force your family to cram into an 800-square-foot apartment instead. But you should take a close look at your budget and find ways to cut back to some degree.

That could mean only dining out once or twice a month instead of once a week. It could mean canceling a few subscriptions you don't use very often. Or, it could mean taking a more low-key vacation, like going camping for a week, instead of paying for a more expensive hotel. Even small spending cuts could free up a lot money for retirement savings over time.

3. Begin making plans to work longer

Age 62 is the earliest age to claim Social Security, and 65 is when Medicare eligibility typically begins. These are both pretty popular retirement ages. But if you're 50 with no savings, you may need to get on board with working a bit longer. That could mean staying employed until age 67, which is your full retirement age for Social Security, or even a bit longer.

Giving yourself a few extra years in the labor force doesn't just afford you an extra opportunity to add to your savings. It also allows you to leave your savings untouched a bit longer, helping that money to last.

While it's not ideal to be 50 without retirement savings, there's no point in dwelling on the past. Instead, figure out what steps you're going to take starting right now to begin funding that IRA or 401(k). You never know how well you might be able to make up for lost time.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

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View the "Social Security secrets" »

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