A 2024 GOBankingRates study found that many Americans aren’t contributing to any retirement fund.
This means nearly two-thirds of the workforce could face financial catastrophe after leaving. The median retirement savings for Americans under 35 is just $18,880, much less than experts recommend.
Social Security replaces only part of your pre-retirement income, so it can’t fully close the gap.
The system is leaving millions unprepared for retirement.
Why Starting Early Matters
Financial experts say starting early is the most powerful way to build retirement savings because of compound interest.
However, real life can get in the way, such as job loss, emergencies, or living paycheck to paycheck. The ideal plan is saving steadily over 40 years, but what if you find yourself in your 50s or 60s with very little savings?
Experts say it’s not too late, but you’ll need a different strategy to catch up.
What Is the FIRE Movement?
The Financial Independence, Retire Early (FIRE) movement helps people retire much sooner by saving 50-75% of their income and living simply.
Followers determine how much they need by multiplying their yearly expenses by 25, then plan to withdraw 4% each year.
This idea became popular after the book Your Money or Your Life showed that saving more can change your retirement date.
Typical Savings Levels
Federal Reserve data shows big gaps in people’s wealth: ages 45-54 average $313,220, but the median is only $115,000.
For people 55-64, the average is $537,560, and the median is $185,000. Most people say they need over $1 million for retirement, but fall short.
Because so few are prepared, more are looking for new ways to retire.
Is a Ten-Year Retirement Plan Possible?
Experts say it is mathematically possible to retire in 10 years even with no savings, but only by making extreme changes.
SmartAsset analysis found that saving 75% of your income and investing wisely can work for many.
Patrick Traverse, CFP, says, “It’s never too late,” but this plan requires you to combine cutting expenses, investing, and maximizing retirement accounts.
Living on Less
If you want to retire in 10 years, you’ll need extreme frugality, much tougher than everyday budgeting.
Some live on as little as $25,000 a year. That means no restaurant meals, subscriptions, new clothes, or pricey extras.
Housing and transportation costs must be cut back drastically, too. Every spending choice becomes about actual necessity.
Making More Money
Retiring in 10 years with no savings isn’t just about spending less; you must also earn more.
Experts advise negotiating better pay, getting promotions, or changing jobs.
Many build side incomes—freelance work, rental income, selling online, or investing.
You can direct extra cash into retirement savings by boosting household income 20-50%.
Investing Aggressively
Experts say that to hit retirement quickly, you need more money in growth investments (like stocks).
Even people in their 50s might have 75-80% of their portfolio in stocks, so their money keeps growing after retirement.
Low-cost funds, dividend stocks, and real estate are popular choices. Regular investments help smooth out market ups and downs.
Real-Life Success Stories
Plenty of people have managed significant turnarounds, even starting later in life.
Jennifer James saved $100,000 in five years by raising her income and saving hard. She said: “With determination and a smart plan, you can achieve financial independence, too. Don’t give up hope just because you’re starting late.”
Rich Colorado retired with $1.3 million at age 87 with careful saving—not complicated investing. He said, “They always say you need all this money to retire. I didn’t plan for retirement. It just happened, and I can’t tell anybody exactly how to do it. I was frugal, and so was my wife.”
Discipline and steady saving can make a huge difference, no matter your starting point.
Beating Taxes
The fast-track retirement plan uses every tax advantage possible.
In 2025, older workers can contribute up to $31,000 per year to 401(k)s, and those aged 60-63 can save even more.
Contributing to IRAs and HSAs helps cut taxes now and lets investments grow tax-free or tax-deferred for the future.
What If Markets Crash?
Retiring in 10 years means your investments could be hurt badly if the markets drop just before you finish.
Downturns in the last few years can force you to wait longer—as happened during the 2008 crisis.
Planners recommend regular checkups and considering shifting your investments to be more cautious as you approach retirement.
Handling Healthcare
One of the biggest challenges is health costs. Without employee insurance, some pay $1,000–$2,000 monthly for coverage before age 65.
Medicare starts at 65, but doesn’t cover long-term care, which can drain savings fast.
Health Savings Accounts (HSAs) help, and some FIRE followers move to countries with cheaper medical costs.
Planning for Social Security
Social Security rules affect everyone. If you claim at 62, your benefits drop by 25–30%; waiting until 70 boosts them by up to 32%.
Most ten-year retirement plans mean years without Social Security.
Benefits can also be taxed if your income is over $25,000. Timing is crucial for lasting financial Security.
How It Affects Families
Radical saving can strain family relationships. Couples must agree on sacrifices, and children may lose out on expensive schools or vacations.
Social lives often change because people skip outings that cost money.
Some families move to cheaper areas, which can mean significant changes for kids.
Hard on Your Mental Health
Saving 50–75% of your income for years is stressful. People sometimes become so careful with money that they struggle to spend even when they’re safe financially.
Fears about markets, social pressure to spend, or avoiding health needs become issues.
Balance and professional advice can help keep things healthy.
Retirement Law Changes
Recent laws have made it easier to catch up on retirement savings.
The SECURE 2.0 Act, which takes effect in 2025, allows people aged 60–63 to contribute even more to their 401(k)s.
Some high earners must put catch-up savings in Roth accounts (after taxes).
Other changes let workers take out emergency savings more easily or get enrolled automatically—helping more people save.
How the Financial Industry Is Responding
Banks and investment firms now offer new services for people catching up late or wanting to retire early.
New “target-date funds,” robo-advisors, and extra Roth options make it easier for everyone.
Some companies even help FIRE followers plan. New insurance products help retirees stretch their money further.
Social Media’s Role
Social media spreads both inspiration and misinformation.
Some influencers show how they retired early, but their stories may not match your reality.
Online groups share tips and support, but also plenty of questionable advice.
While you can learn much online, experts warn against copying viral stories.
Lessons From the Past
History has good and bad lessons for fast-track retirement.
1970s inflation and Japan’s stagnant years show how tough times can derail retirement. In 2008, many had to delay leaving work. But those who kept saving and investing often did best.
Depression-era savers proved that even low incomes can lead to financial freedom if you’re disciplined.
So, Can Anyone Retire in 10 Years?
Retiring in 10 years with no savings is possible, but with enormous sacrifices that most can’t or won’t make.
You must cut spending, save at least half your income, invest boldly, and accept a simple lifestyle.
It works best for those with high earnings, though those with typical incomes can succeed if committed. Health, market changes, and family needs can disrupt plans.
Experts reveal it’s about actions, not just money. If you embrace the strategy, it’s achievable for anyone.