6 things to do if you feel like you'll never afford retirement

If you feel like you'll never retire, you're not alone. According to the National Institute on Retirement Security, about half of Americans feel that retirement is financially out of reach. Additionally, nearly 90% of Americans want Congress to address upcoming Social Security shortages sooner rather than later.

Fortunately, there are several steps you can take to prepare for retirement, even if you are in your 40s, 50s, or 60s and feel behind. Here are some examples.

1. Figuring out your retirement savings target

To plan effectively for your retirement years, the first step is to figure out your savings target. Once you have a concrete goal, it makes it easier to work towards it. Fidelity recommends that you have 10 times your salary saved by age 67 in order to retire comfortably. However, many people also have Social Security income. Once you add that into your retirement savings, you may not have to save as large a balance as you think. Additionally, if you pay off your debt, including your house, you may be able to live on much less than you do now.

2. Starting to save something now, even if it's small

Many people don't feel ready for retirement because they feel they have to contribute a large amount to their retirement plans. However, small contributions over time can still make a big impact. Even contributing as little as 1% of your paycheck into a workplace 401(k) can grow and compound over time. Because investing allows your balance to compound and grow, the earlier you start, the better. However, any amount, even if you're in your 60s, can provide extra income on top of Social Security.

3. Automating contributions and increasing them gradually with each raise

One straightforward trick is to see if your employer offers automatic increases for your 401(k) plan. If you select this option, your employer will automatically adjust your paychecks to increase by preset intervals until you reach your contribution maximum. These small increases don't make a huge impact on your paychecks, but they can pay off in the future. The benefit of doing this is that you don't have to make several decisions to contribute more. When it happens automatically, you're able to invest more every year before lifestyle creep absorbs your paycheck.

4. Tracking spending for 30 days

Another helpful habit is to start tracking your spending for 30 days. When you do that, you can take inventory of your spending patterns and identify areas where you may be able to cut back. Any cash flow that you create, you can allocate it towards retirement savings. Tracking spending doesn't have to be restrictive or difficult. It's simply data that you can use to help you redirect money towards your retirement nest egg.

5. For those 50 and older, using catch-up contributions

If you're age 50 or older, the best way to catch up on retirement savings is to take advantage of catch-up contributions. Those over 50 can contribute an extra $8000 a year to their 401(k) and an extra $1,100 per year to their IRA. If you're able to, maximizing these contributions when you turn 50 and each year after that can help you top up your savings before you retire.

6. Fallback options for those who are seriously behind

If you truly don't feel like you'll be able to catch up on your retirement savings, you do have some fallback options. First, you can work for a few years if you are in good health. Many people are living longer and have the ability to continue working at their jobs. This may give you time to take advantage of catch-up contributions and top up your retirement account. You can also consider part-time work as a way to supplement retirement savings. Finally, you can also reduce your expenses, like downsizing your home in order to reduce maintenance expenses and improve cash flow.

Remember, "behind" doesn't mean "hopeless"

If you want to retire soon but you don't feel like you have enough saved, it can feel hopeless. However, being behind on your retirement savings doesn't mean you can't catch up or that you can't improve your situation. Taking some of the steps listed above can help improve your nest egg. Additionally, speaking with a financial planner and allowing them to review your full financial picture can help get your finances on the right path.

Bottom line

Many people feel like they'll never be able to afford retirement. However, there are many steps workers can take right now to get on track for retirement and improve their overall savings, even if they are in their later working years. For example, using catch-up contributions, tracking your spending, and speaking with a financial planner can all help you get on track with your retirement savings.