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6 tips on saving for retirement when you don’t think you can

As people live longer and the cost of living continues to increase, the price tag on retirement remains high. In 2025, Americans expect that they’ll need $1.26 million to comfortably say goodbye to their jobs forever, according to .

That number can seem daunting — especially for people living paycheck-to-paycheck, or saving for other goals such as buying a home or continuing their education. But experts say there are ways to save for your golden years now, even if it doesn’t feel like you can.

, a consumer fintech banking platform, shares six tips for saving for retirement when it feels like you can't put any extra cash away.

1. Don’t forego a 401(k) match

When you feel like there’s very little wiggle room in your budget, it can be challenging to forego some of your paycheck now so that it goes directly to your 401(k) or other type of retirement savings plan offered by your employer. But many employers will match your contributions up to a certain amount, such as 50 cents for every dollar you put into the account on the first 6%.

Contributing up to at least an employer match is “a no-brainer decision,” says Josh Gallogly, a financial advisor and founder of Milestones Financial in Columbus, Ohio. “It’s an instant positive rate of return on your cash.”

Keep in mind that sometimes companies will require your contributions to “vest,” which means that you’ll have to wait a certain amount of time, such as three years, before you fully own the employer contribution.

2. Take advantage of the HSA

The 401(k) and similar retirement savings accounts — like the 403(b) — garner the most attention when it comes to employer benefits that can boost your savings. But don’t overlook other options. Health savings accounts (HSAs) are “attractive options for a lot of people,” Gallogly says.

These accounts are designed to help you save for certain medical costs, and they’re triple-tax advantaged: Contributions can lower your taxable income, the money grows tax-free in your account, and you can withdraw the money for qualified expenses without paying federal taxes on it. Those tax advantages could certainly help you save more over the long term than simply putting that money in a savings account — and considering Fidelity’s recent Retiree Health Care Cost Estimate found that a 65-year-old may need $172,500 on average in after-tax savings for health care costs, it makes sense to build up that nest egg now.

Another perk? Once you hit age 65, you can withdraw money from these accounts for any nonmedical expenses (though you’ll be taxed on nonqualified withdrawals).

3. Automate your savings bumps

After initially setting up recurring contributions for your retirement accounts, you won’t have to do anything else to ensure that money goes straight to your retirement account. But Kiersten Peshek, a lead wealth advisor at Citrine Capital in Columbus, Georgia, says that you can also typically elect to have your contribution amount increase each year — and even a 1% boost can make a difference over the long term. If someone knows they typically get a 2% pay increase in April, for instance, they can set their contribution amount to increase by that much each April.

That way, you’re increasing your retirement plan contribution without majorly impacting your net cash flow.

“The upside of that is you really don’t feel it that much,” Peshek says. “I like that method because it helps folks slowly increase the amount they put away for retirement without causing undue stress.”

Automating your savings isn’t only a strategy you can implement in your retirement savings accounts. Having a bank account that rounds up your purchases to the nearest dollar and adds the difference to your savings may seem small at first, but every little bit adds up in your savings over time.

4. Have a strong emergency fund

Financial advisors tend to recommend that you build up an that could cover three to six months’ worth of expenses should the unexpected happen, like you lose your job, are hit with a surprise medical bill or need an urgent car repair. While that may seem separate from saving for retirement, having cash available when you need it means there’s less of a chance you’ll have to touch your retirement savings.

“The emergency fund is part of building a solid financial foundation,” Gallogly says.

You typically want to keep an emergency fund in a savings account that will earn a higher yield than what you’d see with a traditional bank, such as at an online or mobile-only bank, for example, which tend to offer much higher savings rates.

5. Increase your earning potential

Even if you feel like you can’t put more money away now for retirement, you may be able to make moves that could increase your earning potential down the line.

One of the best investments people can make is investing in their careers, Gallogly says. “For many people, the biggest asset in their financial portfolio is their human capital, which is their ability to use their skills, experience and human talent to earn income throughout their lifetime.”

Employers often offer training programs or will fund employees’ career growth by sending them to networking events or paying for their classes. While this may not be a direct way to save for retirement, taking advantage of these perks now could allow you to save more later.

6. Start small

If you feel overwhelmed by how much you may need to save for retirement, start small. Contributing just a small percentage of your overall income to a retirement savings account, or — if you’re already doing that — setting aside just $20 each week to contribute to an individual retirement account (IRA) on the side can help.

Doing so early on can also help you develop good savings habits, Gallogly says.

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