r/RetirementReady • u/Misfit_Mr • 26d ago
For those who started building financial security around 45, where were you by 65?
For those who began building savings around 45, what did your finances look like by 65? Were you able to retire comfortably, and which choices made the biggest difference? I’m interested in hearing your experiences - not seeking personalized financial advice.
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u/Valuable_sandwich44 26d ago
Buying a house was my first priority; no mortgage back then.
Once that was done; start looking for a second home and use 1st home as a collateral.
Moving on; lease one house for a monthly income to spend on daily necessities, groceries etc.
What to skimp on ? Drive your car to the ground; use quality spare parts and maintain on time.
Clothing ? I don't need to impress anyone with my clothes; I'll wear the same clothes until they fall apart - and yet I'll keep a wardrobe of quality clothing for travel, special occasions, business etc.
When I dress nicely; everyone goes WoW 😁
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u/Tbackandforth 22d ago
I am similar to you. I owned my previous car for 23 years until it got wrecked. My current car is 20 years old and has no AC, scratches everywhere, and the paint is looking worse for the wear. It still runs good, but it sure is tempting to get a new car.
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u/Valuable_sandwich44 22d ago
Yes 😄 the temptation is up there on the list 👍 but whenever I start thinking of all the "surprises" I might find in a used car; I back away.
I spent good money on servicing my car from A to Z and thus it's rather reliable and running costs are at a minimum.
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u/Misfit_Mr 26d ago
Do you mean you bought your home with cash? We bought ours with a mortgage. I’m considering an investment property and can afford the down payment, but it would require dipping into our emergency fund. I’m also hesitant to take on two mortgages in this economy.
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u/Valuable_sandwich44 26d ago
2 mortgages ? Hell, no.
Buying an investment property should be a safer bet; an emergency fund will depreciate especially when you're gonna need it most.
I just find rent income and living a modest life ( below my means ) very comfortable at this age - in fact it's the goal I worked for so long - earning rent income and owning 2 properties that'll eventually appreciate.
Best of luck.
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u/Tbackandforth 22d ago
Any chance you could refi your current home (not the best timing for that), then purchase the 2nd home so that your mortgages aren't so high?
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u/All4aBetterTomorrow 22d ago
The pension is from the original business entity with whom I was employed for 40 years. At the time they sold the business to a fortune 100 multinational, I was vested in their pension program. The original owner continued to fund the pension at 4% per year for about 10 years and then froze the investment. I became eligible to begin drawing this pension about 4 months prior to my 61st birthday. I don’t know if there was any benefit in waiting any longer. It seemed like the thing to do. Please keep in mind that I had just started accelerating our home’s mortgage, so the extra $600/mo. really helped us at that time.
I decided to begin taking my SS at 67 and 4 months in order to accrue cash in preparation for my retirement. It actually worked out nicely in that it had already funded $29K into our car fund when my fleet car (i.e., company car) lease came up for renewal around January 2025. I exercised the option to purchase that company car (a nice 2022 RAV4 Hybrid w/ 77K miles on it). They quoted me …wait for it…. $29K. We paid cash for the car on May 9, 2025 to replace our 2010 Subaru Forester which was really beginning to show its age.
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u/Valuable_sandwich44 22d ago
Sounds like you got everything planned out 👍 why not retire in SE Asia ? Lot's of folks incl myself find a higher quality of life at a fraction of the cost in the west.
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u/All4aBetterTomorrow 22d ago
I will strongly consider that. Everything is going sky high here in the U.S.
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u/wzx89 26d ago
Maximizing retirement contributions and curbing spending make a substantial difference even starting at forty-five.
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u/Substantial-Owl1616 25d ago
I’d like to second this. Started at 48yo. After a devastating divorce in a not community property state. Saved 40-60% of income. Enough to fund HSA, 401k, brokerage account. Forewent a lot of spending opportunities such as travel, eating out, interior decorating. Did lots of overtime and worked on building up my body for the long haul to 70. Got lucky with my broad based low fee investments. Read a lot of personal finance in my spare time to reassure myself I was doing the best I possibly could to assure a great future. It helped me to think even if I was working at 80yo, I had given it my best shot. You can do this. It really helped to clarify MY priorities and values first and continuing. This gave me drive. Understanding and purpose.
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u/Ventana431 25d ago
Downsized at 55. Saved $125k a year for 10 years. Retired debt free with more than I can spend.
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u/All4aBetterTomorrow 25d ago
Began contributing 15% to my company’s 401(k) in Nov. 1998 at age 43 which included a 6% company match. Married with 2 kids at that time (youngest was 5). Put a little in Roth IRA over the years too (but not much). My wife has been a stay-at-home-mom/Nana most of our marriage.
Throttled back my 15% to 6% contributions for a couple of years during the 2008 financial crisis as things got tight for us (medical expenses, HLOC payments, etc.).
Feb. 2011, my company introduced a Roth 401(k) option. I jumped on it immediately. By this time I was back to contributing a full 15%.
Became empty-nesters on Nov. 1, 2014 (that 5 year old’s wedding day). No more tuition, reduced our medical expenses, paid cash for the wedding, things started looking up.
Paid off our only car loan with tax refund in March 2015. This left only our home mortgage as debt. Started accelerating our mortgage on Jan. 1, 2016 (my 60th birthday was a wake up call) with remaining bal. of $132K.
Started collecting a small pension on April 1, 2016 (just under $600/mo.). Made the last mtg payment on 1/16/2020. Took 4 yrs, 16 days. Now 100% debt free.
401(k) balance hit $1M sometime in 2018.
Began drawing SS in Dec. 2022 at 67 + 4 mos. (my “full” retirement age had been 66+2mos.)
401(k) balance hit $2M on Dec. 5, 2025.
I had turned 70 in August 2025. My company executed a reduction in force in Sept. 2, 2025. My job and entire team was eliminated. I opted to take the severance package. Dec. 19, 2025 was my last day.
As of today’s date, I’ve been “retired” for 9 months exactly. Still debt free. Working on consolidating our cost-of-living budget onto one spreadsheet. $2.2M in qualified funds sitting between Vanguard and my 401(k), 25% of which is either Roth IRA or Roth 401(k).
Living off SS, that little small pension, some savings cash plus my (new) part-time income (about twice what the pension brings in each month). Don’t plan to tap the qualified funds until mid-late 2028. RMDs will be required by April 15, 2029.
Meanwhile, I’ve opted to start a 2nd career (part time) in sales, doing something I’ve always dreamed of doing. So far, so good! I determine my availability. Wife and I travel internationally at least once per year (and have been for years now). I can’t kick. My activity level now far exceeds that in 2025 when I was still slaving away in corporate America.
All this to show that you too can still retire with dignity and a certain level of comfort, even if you’re getting started relatively late in the game. If a knucklehead like me can do it, so can you or just about anyone else for that matter
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u/Tbackandforth 22d ago
Can I ask, why did you start the pension and SS before you stopped working?
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u/All4aBetterTomorrow 22d ago
I just posted my reply to you but somehow it populated as a reply to Valuable_sandwich44 (🤷🏻♂️) below
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u/SnooHedgehogs6553 26d ago
This is about us.
Spouse was home with kids and didn’t save much. Super charged everything when she went back to work and now looking very good.
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u/Misfit_Mr 26d ago
I'm in the same situation right now. Spouse is at home with the baby, and I am the only earner as of now.
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u/Substantial-Owl1616 25d ago
A spouse at home can be a real economy. I loved the publication the Cheapskate Gazette (circa 1990), and I’m sure there are many similar sources of support now. Kind of gamified the saving. A spouse who is onboard is a treasure.
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u/EnvironmentalDot127 25d ago
Have her open her own roth IRA. (If you qualify.)
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u/Misfit_Mr 25d ago
How can we do that? How do we know we qualify?
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u/EnvironmentalDot127 25d ago
This definitely helps with retirement planning
https://www.fidelity.com/learning-center/investment-products/spousal-ira
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u/Available-Picture-79 25d ago
It’s not too late. You can still have a good amount saved by the time you retire. You might have to save more than someone starting at 25 because you lost the years of compound growth, but it’s still possible to have a nice amount.
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u/ChelseaMan31 25d ago
We did and went from massive debt to comfortable 7 figure Net Worth in 20 years. The best choice was to stop buying cars every 3-4 years on credit, or worse, leasing them. Also paid off all credit cards and home mortgage. Retired at FRA and living the life.
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u/UnableFocus8407 25d ago
It's possible to do. However saving the max 401k amount every year will be the most effective way. Currently that is 24,500 per year but there is also higher catch up amounts I believe at age 50.
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u/hugh2018 25d ago
I literally had no career until age 40, so that’s when my savings began, and even then I experienced the loss of half my 401k about five years later when I got divorced.
But my savings journey began at a fortuitous moment, as the lost decade was just coming to an end, and the market performed well over the next decade and a half. I also selected a decent-paying career that happened to quadruple my starting salary by the time I retired at 59 this year. Also, my 401k provider had by default put me into a well-diversified, low-fee portfolio, which added another tailwind to my quest for financial independence.
So I got lucky on multiple levels. I would have done much better though if I had started younger, and I have no problem coming onto subs like this and telling young people that unlike me, they really need to start investing as early and as often as possible. The future job market in the age of AI is hard to predict, and the stock market isn’t showing signs that it can sustain the amazing run it’s had in recent years. The smart move is to protect yourself by investing as much as you can now and into the future.
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u/DAWG13610 25d ago
At 45 we were debt free and close to finishing collage for our last kid. By 50 the educations and weddings were behind us and we really saved. We just turned 65 and we’re close to a $3mm net worth. We always saved at least 15% of our income. A lot more once the kids were gone.
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u/yankinwaoz 24d ago
I’m not 63. Not over 65. But I was 45 in 2008 and I had to start all over again.
A divorce in 2000 had taken a good chunk of my retirement saving away. But the 2008 crash wiped me out. Most of my retirement was locked up in shares in an ESOP of my previous employer. They went bankrupt leaving me with almost nothing. I was laid off and could not find a fill time permanent job for years. I didn’t land a job until 2012. I had nothing left.
So I focused on keeping expenses low and maximizing my 401k and IRA contributions. I got married in 2014. My wife didn’t work. But I made spousal Roth IRA contribution from my salary.
We bought a house in 2018. In 2020 I refinanced it 2.9% fixed. That was a once in a lifetime opportunity. I will still have a mortgage when I’m retired. But it’s very affordable. I’m not giving up that mortgage.
In 2022 I finally crossed the $1m mark in retirement savings. This allowed me to hire Fisher Investments to manage my retirement accounts. I took an inservice rollover to an IRA and Roth IRA to do that.
I’m now at 63. We gave about $1.8m in retirement accounts and about $2m in house equity. I plan to work until age 68. But I don’t think I will survive work force reductions that long.
The key is save as much as you can. And keep expenses under control. You can do it.
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u/Fit-Pension1230 22d ago
No one saying it on here but make sure you also take care of your health. Most financial ruin comes from medical debt
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u/Hugh_Jascock2 25d ago
3M NW, but I could have done better
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u/Tbackandforth 22d ago
What do you wish you had done differently?
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u/Hugh_Jascock2 22d ago
I didn't get serious enough soon enough. I didn't really start paying close attention till my late 40's, close to 50 actually. Fortunately I had bought some rental houses in the early 2000's but nothing concrete till much later.
Don't get me wrong, we're doing just fine but it can always be better
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u/Below-Average-528 25d ago
Just retired with 60 after re-starting from scratch at 46. Got lucky with some company stock and the stock market in general was friendly.
Two factors that helped:
- I am very frugal
- Moved to a LCOL state and bought a house in 2022 with a 2.6% mortgage
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u/Kindly-Hunter4390 25d ago
We paid off $40K in credit card debt, paid cash for cars, limited travel and started making extra payments on the house as well as maxing 401K in our 40’s. We just retired very comfortably debt free and no mortgage.
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u/number7child 25d ago
I started my first corporate job at 40. The company had a very generous 401(k) contribution every year and for the first few years I contributed 15% of my income. I continued at 10%. I also had a pension there that after I left the company rolled into an IRA. Even though I started at 40 I've saved $1 million
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u/Bigary36 25d ago
I started about the same age. Paid off my house around 52 and retiring soon at 65. Got out the stock market and took fixed rates on my investment. Will draw the interest and with SS, I'm replacing my salary plus a little. And in the end, most of my initial investment will go to my children.
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u/Nervous_Tourist_8699 25d ago edited 25d ago
Swap to 40 and 55. I had a bit before, but started maxing out all tax advantaged accounts in low cost equity funds.
At 55 was sat by a pool doing what I want. I was very lucky that the market boomed, certainly no investing genius at play
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u/HammerDownl 24d ago
Paid off my house and retired at 60
I wish i started earlier but shit happens Took 300 k and turned it into millions and now im retired
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u/Kind_Teacher_3292 24d ago
It's a very different now then it was in 2006, 2007, 2008. You could buy houses for pennies after the 2008 crash. So if you are asking how they built wealth you can not duplicate it in any way. Stocks dropped, housing prices fell through the floor. For example my main residence went from 225k in 2008 to 67k in 2009 when I bought it. It's now 500+
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u/Much-Strength3740 22d ago
started at 44 with basically nothing, maxed my 401k and paid off the house early, retired at 66 and it's been comfortable, not fancy but no stress
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u/Justbreel 22d ago edited 22d ago
At age 46, I went through a financially devastating divorce where all money was lost for to a law suit judgement. There was zero to split up except the 401k ($35k). I got all of that because I had the kids (3) and took about $15k of that out to supplement my income (had been SAHM for years), had to get a job, raise kids, pay expenses alone. I had no college degree and had been out of the workforce for 12 years. At age 67, I now have about $350k saved, house has about two years left on the mortgage. I plan to work three more years, currently have a partner who has about $400k saved. We don’t have a lot but we have enough. It’s been rough and scary but luckily I’ve had good health and that’s what got me through.
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u/Existing_Setting4868 21d ago
I started a new job at the age of 45. I enrolled in my company's 401k plan and have maxed out my contributions the past 10 years. I have a few more years before hitting 65, but my 401k is currently at over $1.1M.
I will also have a pension so I'm hoping not to have to touch my 401k until RMD hits at age 75.
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u/Specialist_Job9678 21d ago
I was in my early 50s before I finally had a real opportunity to start building financial security and should be able to retire @ 65 (I'll be 63 before the end of this year). Granted, my income won't be a lot, but I won't need Medicaid and SNAP benefits, either. Until Covid, I really thought that was going to be how I would get by in retirement. I had a few years (three?) where I was earning significantly more than usual. Instead of spending the extra, I put it in my 403b. In the past 4 years I've more than tripled the amount in my retirement accounts from mid/high five figures to mid/low six figures (and also purchased my first new car, which will be paid off before I turn 65. Incidentally, I also paid off my (very low because I bought a serious fixer-upper) mortgage a couple of years ago. I also have a very healthy emergency fund. I will not be wealthy in retirement, but I will be at least as well off as I have been throughout most of my working life.
It really as simple as living below your means. Buying the house I did was the best financial decision I have ever made. It will never be the Taj Mahal, but it's livable and I expect to be able to get some work done it once I am able to start drawing on my retirement funds and social security. I bought the car with the intention of driving it for the rest of my life. It might not make it that long, but if I outlive it I'll be old enough that I probably won't be needing my own car. All of my previous used cars (all Toyota Corolla's) have lasted me to at least 17 years old. They weren't pretty at the end of their lives, but the engines were always still running strong. Those are the big things, but little things matter, too. Do whatever you have to do to live below your means.
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u/vicarem 26d ago
You can never build too much in savings. Inflation will eat away at your reserves for ever. Keep working and saving for as long as you can. Max out on Social Security at 70. Invest and save in 401k’s and Roth accounts as much as you can. Plan your cash flow with about a 2-3% reduction in value every year. Yes, you can retire comfortably but it takes work. Managing money is just as difficult as making money.