The oldest millennials are turning 45 this year, which puts them about 20 years from retirement — and at their peak saving age.
According to data from millions of active ADP payroll records, workers’ peak earning years often hit in the 45- to 54-year old age bracket.
The good news is that almost half (42%) of millennials report feeling financially on track for living out their golden years, reports Vanguard. If you fall into the other half that feels behind, here are six tips for accelerating your savings when your income is highest.
6 ways to supercharge retirement savings at 45
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Max out your tax-advantaged accounts
By 45, you probably already have a 401(k) or IRA, so the focus is on maxing out either of these tax-advantaged accounts when you can.
The IRS contribution limits for year 2026 are $24,500 for a 401(k), plus an extra $8,000 catch-up contribution if you’re 50 or older, and $7,500 for IRAs with an $1,100 catch-up contribution at 50.
If you can’t contribute enough to max your 401(k), at least do enough to meet an employer match if available, since that’s basically free money.
If you already have both a 401(k) and a Roth IRA, you can balance contributions strategically by prioritizing the 401(k) employer match first, then funnel extra savings into a Roth IRA for tax-free growth. Once the Roth IRA is maxed, you can increase your 401(k) contributions beyond the match. This gives you flexibility for tax planning and ensures you’re stacking both pre-tax and after-tax savings.
Raise your savings rate
In order to max out your retirement accounts, you’ll need to up your savings game.
Start by taking a look at how much you’re saving overall, not just in your 401(k), but across retirement, brokerage accounts and cash savings. Financial planners often suggest aiming for 15 percent or more of your gross income in your peak earning years, including employer matches.
You can increase your savings rate gradually. A 1% to 2% bump each year can make a noticeable difference over time. You can automate an increase each year into your 401(k), or you can direct part of a raise into an IRA.
Extend timeline to retirement
Delaying retirement, i.e. working longer, is a harder decision to make the closer you are to retirement age simply because it could be harder to find work at that age.
But if you’ve been wanting to retire soon and you’re 45, giving it an extra few years while you’re younger could pay off meaningfully come retirement. Those extra years add income, give your investments more time to grow and reduce the number of years you’ll need to draw from your savings.
Make sure investments aren’t too conservative
At 45, you can likely afford to take on a bit of risk since you’re still far from retirement. If your portfolio is too conservative, that could mean missing out on growth in these pivotal years. This is the time to dial it up a bit by increasing your stock allocation.
Cut high-interest debt ASAP
High-interest debt will only slow your savings progress down, undermining your ability to build wealth. If you’re carrying any double-digit credit card debt at 45, prioritize paying it off before anything else. What you’re paying on that debt is taking away from what can be compounding for your future.
Balance transfer cards with a 0% introductory APR can give you breathing room. Transferring your balance to a card that temporarily pauses interest allows more of your payment to go toward the principal instead of financing charges. Just make sure you understand the promotional periods and any transfer fees. Both theCiti Simplicity® Card and the Wells Fargo Reflect® Card offer an interest-free period on balance transfers.
The Citi Simplicity® Card may not earn rewards, but it can still save you money due to its amazing intro-APR offers.
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The Wells Fargo Reflect® Card can help you save on interest charges thanks to its extra generous intro-APR offer on purchases and qualifying balance transfers.
- Best-in-class intro-APR for purchases and qualifying balance transfers
- No annual fee
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- No rewards
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- High balance transfer fee
Highlights
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Balance transfer fee
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Debt consolidation loans are another option if you have multiple credit card balances. Rolling multiple high-interest balances into a single loan with a lower fixed rate can simplify payments and potentially reduce what you pay in interest over time. The goal isn’t just to move debt around, but to create a clear, structured plan to pay it off faster so you can redirect that cash toward retirement savings.
Upstart and Avant both offer debt consolidation loans and are a good place to start, especially if you have bad credit.
Bad credit? You can still get funding for major expenses.
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Annual percentage rate (APR)
Refinance or downsize
If you’re a homeowner at 45, consider refinancing your mortgage to save on interest and redirect to retirement. Better is a great option for securing a low rate and Rocket Mortgage will guarantee you a speedy closing process. Even a modest reduction in your interest rate can translate into meaningful monthly savings over time.
Online mortgage lenders can often help homebuyers with lower interest rates and faster closing times
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
5% for conventional loans, 3.5% for FHA loans, 0% for VA loans, 10.01% for jumbo loan
If refinancing doesn’t make sense, downsizing your home is another way to unlock equity and reduce monthly costs. At 45, this can help you boost savings without needing to earn dramatically more.
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