Only 16% of Retirement Savers Made This Essential Move in 2021

Many people neglect their retirement savings during their 20s, 30s, and even 40s. In your 20s, you may be focused on things like paying off educational debt and the credit card balances you racked up during college, all while trying to build some near-term savings. In your 30s, your priority might be to buy a home. And in your 40s, you may be fixated on socking money away to help pay for college so your children don't wind up with the same debt burden you did.

As such, many people reach their 50s without a lot of money socked away in a retirement savings plan. That's the bad news. The good news is that both IRAs and 401(k)s allow savers to make catch-up contributions starting at the age of 50.

If you have an IRA, your catch-up is worth $1,000. With a 401(k), it's even more substantial -- $6,500.

Source Fool.com