How to Stage a Retirement Comeback: Smart Strategies for Financial Freedom

Joe Anderson and Coach Big Al are sounding the alarm: 20% of people aged 50 and older have absolutely nothing saved for retirement. Meanwhile, over 60% of Americans are worried they won’t have enough to retire. With life expectancy stretching to age 90 and the average retirement age at 64, this financial gap is becoming increasingly dangerous. But it’s not too late. Here’s how you can stage a fourth-quarter comeback.

1. Assess Your Starting Point If you’re in your 50s or early 60s, the clock may be ticking, but the game isn’t over. Many people nearing retirement believe they need $1.6 million, yet the average retirement savings for those aged 55-64 is around $400,000. That’s a big gap, but Joe and Big Al show that with the right strategy, you can still create a workable plan.

2. Spending Adjustments Make a Big Difference In a case study of a couple in their mid-50s, reducing annual spending from $100,000 to $90,000 extended their retirement savings by six years. This single tweak made their money last until age 84 instead of 78. It turns out, cutting back a little on travel, dining out, or unnecessary subscriptions could make a big long-term difference.

3. Working Longer or Delaying Retirement If you can work an extra two years, you gain twice: more money saved and fewer years drawing from your savings. In the case study, working until 66 (instead of 64) had almost the same positive impact as cutting expenses by 10%.

4. Roth Conversions and Tax Strategies Taxes don’t retire when you do. Joe and Big Al recommend using Roth conversions to shift money from traditional accounts to Roth IRAs while you’re still earning. Doing so can lower your future tax burden and give you tax-free income in retirement. Just make sure you use non-retirement assets to pay the tax bill, or you’ll lose the compounding advantage.

5. Sequence of Return Risk Is Real The early years of retirement are vulnerable to market downturns. If your portfolio drops and you’re withdrawing funds at the same time, it can cripple your future. Maintaining a balanced allocation and keeping your withdrawal rate low can protect your savings during rough markets.

6. The Triple Lindy Strategy Joe and Big Al combine four power moves: save more, spend less, delay Social Security, and work longer. They call this the “Triple Lindy,” and it could extend your savings lifespan to age 94. These adjustments may seem small individually, but together they have a massive impact.

7. Take Advantage of Catch-Up Contributions Starting in 2025, Americans aged 60–63 can contribute 150% of the standard catch-up limit. That’s $11,250 in additional contributions annually. Someone starting from $0 at age 59 could still end up with $340,000 by age 67 with diligent saving and a 6% return.

8. Plan for Health and Long-Term Care Long-term care costs can derail even the best retirement plan. With assisted living averaging $65,000 per year and skilled nursing at $100,000, make sure to include healthcare planning in your retirement strategy.

9. Understand Your Spending Patterns While many advisors say you’ll spend 80% of your pre-retirement income in retirement, Joe and Big Al warn this varies widely. Some retirees spend more early on during the “go-go” years and later face higher healthcare costs. Plan for flexible spending.

10. Use a Realistic Rate of Return Expecting a 6% return on your 401(k) is a conservative and practical benchmark for planning. Stick to a 60/40 stock-to-bond allocation and avoid emotional reactions that lead to buying high and selling low.

Final Thoughts It’s never too late to stage a retirement comeback. With the right mix of spending adjustments, tax planning, catch-up contributions, and strategic timing, you can extend your savings well into your 90s. And who knows? You might end up better off than if you’d started early but planned poorly.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.