How to save for retirement when you're living paycheck to paycheck

When you’re stretching every dollar to cover rent, groceries and bills, “save for retirement” can sound like advice meant for someone else — someone with more breathing room than you have right now.

Yet a recent CNBC and SurveyMonkey Quarterly Money Survey found that 63% of Americans are living paycheck to paycheck, and 90% of them have less than $500 left over each month after covering their expenses.

The good news is that retirement saving isn’t an all-or-nothing proposition, and it doesn’t have to come at the expense of paying your bills. One of the biggest misconceptions is that saving only “counts” if you can afford to set aside hundreds of dollars each month.

Financial planners say the opposite is often true. Building the habit of saving consistently, even in small amounts, can matter more than the size of each contribution, especially if you start young and give compound growth time to work. You don’t have to begin with a big investment. You just have to begin and what that looks like depends on where you are in life and your financial situation.

Your goal in your 20s is to get into the habit of saving, even if it’s not much since you’re living paycheck to paycheck. Saving small amounts, $10 a paycheck, into a high-yield savings account can help build the momentum for years to come. You have time working in your advantage at this age, so even small contributions cangrow significantly overdecades thanks tocompound growth.

EverBank Performance Savings offers a competitive APY with no minimum balance or ongoing account requirements. Marcus by Goldman Sachs Online Savings Account also charges no monthly fees, requires no minimum deposit and offers flexibility for accessing your money if you need it.

Also, if your employer offers a 401(k) match, prioritize contributingenough to getthe full match. It’s essentially freemoney. If you don’thave access toa workplace retirementplan, consider opening a Roth IRA. You canwithdraw your contributions(but not yourearnings) tax- andpenalty-free inan emergency, offeringsomeflexibility while yousave for thefuture. For beginners, Fidelity’s Roth IRA has no minimum deposit and offers retirement calculators, educational resources and the option to automate investing through Fidelity Go. Betterment’s Roth IRA also has no minimum deposit and builds a personalized retirement plan based on your goals, with premium users receiving unlimited access toa financial advisor.

For some low-hanging fruit, you can also score a few hundred or thousand dollars simply by changing bank accounts, then reroute that money to your retirement savings. Many banks offer new customers sign-up bonuses when you reach a direct deposit minimum. For instance, open aSoFi Checking and Savingsaccount and set up direct deposit within the first 25 days to get up to $400: A direct deposit of $1,000 to $4,999.99 earns a $50 bonus, while a direct deposit of at least $5,000 earns a $400 bonus. The account must be kept open for at least 14 days. According to SoFi, you should receive your payout within seven business days following the 25-day enrollment period. Offer expires Dec. 31, 2026.

While you should take advantage ofhigher 401(k) and IRA contribution limitsavailable to peopleage 50+, you don’t want to ignore urgent financial issues like high-interest credit card debt or no emergency savings.

As you think about the next 15 years, have a strategy for when you’ll collect Social Security and whether or not you can delay collecting benefits. You may want to consider a phased retirement approach where you just reduce hours, move into consulting, work part-time or shift to less physically demanding work. Delayingbenefits can increaseyour monthly payout and working afew extra years gives yoursavings more timetogrow while reducingthe number ofyears you’ll needto rely onthem.

At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every retirement article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of savings and investing products.While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.

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* New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms atsofi.com/banking/checking-offer/ *SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn up to 3.10% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.10% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found athttp://www.sofi.com/legal/banking-rate-sheet. *SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks. *Earn up to 3.80% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.10% APY) for up to 6 months. Open a new SoFi Checking & Savings account with Eligible Direct Deposit by 12/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC *Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 5/28/26. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found athttps://www.sofi.com/legal/banking-rate-sheet