Let’s face it—parenthood changes everything, including your finances. Between diapers, dance classes, school supplies, and saving for college, it’s easy for your own retirement plan to slip to the bottom of the priority list. But if you’re a parent who’s starting to think about retirement a little later in life, here’s some good news: it’s not too late. In fact, with the right moves, you can still build a retirement plan that works for you—one that honors your hard work and provides peace of mind for your family’s future.
Here’s how to do it, even if you’re starting late.
Start Where You Are
It’s easy to get discouraged when you compare your savings to financial “shoulds.” But comparison doesn’t help—action does.
First, take inventory. What do you have saved so far? Do you have access to a 401(k) through your job? Have you opened an IRA (individual retirement account)? What’s your household’s current monthly budget?
Write it all down. Once you see the full picture, you’ll be better equipped to make informed choices, without guilt or shame about where you could’ve been.
Shift Your Mindset: Prioritize Yourself, Too
Many parents put their kids first in every financial decision. And while that instinct is noble, it can backfire when it comes to retirement.
Remember: your kids can borrow for college. You can’t borrow for retirement.
By investing in your own future now, you’re actually protecting your family. A solid retirement plan means your children won’t feel the burden of supporting you later on. And that peace of mind? It’s one of the best gifts you can give them.
Max Out What You Can—Especially the Catch-Up Contributions
If you’re 50 or older, you can make catch-up contributions to your retirement accounts. As of 2025, that means you can contribute up to $30,500 to a 401(k) and $8,000 to an IRA (including the catch-up).
Even if you’re not there yet, maxing out what you can each year, especially if your employer offers a match, is a big win. That free employer match is essentially free money. Don’t leave it on the table.
Open a Roth or Traditional IRA (or Both)
IRAs are excellent tools for parents because they’re flexible and tax-friendly. A Roth IRA grows tax-free and can even double as a backup education fund since you can withdraw contributions (not earnings) anytime without penalty. A Traditional IRA gives you a tax deduction now and grows tax-deferred.
If you and your partner don’t have retirement plans through work, consider setting up spousal IRAs—a great way for stay-at-home parents to build retirement savings even without traditional employment income.
Automate Your Savings—Make It One Less Thing to Think About
Busy parents don’t need more to-do lists. That’s why automation is your friend.
Set up automatic monthly transfers to your retirement accounts. Even $100 a month adds up—and once it’s out of your checking account, you won’t be tempted to spend it. Think of it as your future self paying today’s bills a little thank-you.
Consider Downsizing (Now or Later)
If your kids are nearing adulthood or have already left the nest, downsizing your home can free up a lot of cash for retirement. Even if you’re not ready to make that move now, keeping your future housing needs in mind can shape the rest of your plan.
Smaller house. Smaller mortgage. Bigger retirement nest egg.
Tap Into Side Hustle Potential
Many parents have side hustles already—whether it’s freelance work, selling on Etsy, or driving for a delivery app. Those extra earnings can be funneled straight into a SEP IRA or Solo 401(k), especially if you’re self-employed.
You don’t need to hustle forever, just long enough to give your retirement savings a powerful boost.
Get The Professional Help You Deserve
A financial planner isn’t just for the wealthy. A good advisor can help you run the numbers, understand your investment options, and even help you set realistic goals.
Look for a fiduciary advisor—someone legally required to act in your best interest. If you want to start with something more budget-friendly, some robo-advisors offer human help at a lower cost.
Teach Your Kids While You Save
Here’s a bonus: By working on your retirement plan now, you’re modeling smart money habits for your kids.
Talk to them about saving, budgeting, and planning for the future. Let them see you set financial goals and work toward them. You’ll be planting seeds that may grow into generational wealth and wisdom.
It’s Never Too Late to Start
Yes, it might have been easier to start saving in your 20s. But don’t underestimate the power of focused effort. Even if you’re in your 40s or 50s, you can still build a retirement plan that reflects your values and gives you freedom later in life.
You’ve been taking care of everyone else. Now it’s time to take care of your future, too.
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