While everyone would love to retire at a young age, with plenty of money in the bank and zero debt, the reality is that many Americans in their 50's and 60's have savings accounts with relatively small balances. Without ample savings some seniors may not be financially ready to retire--even when they are emotionally ready. Rather than giving up and resigning yourself to work forever, there are steps you can take to increase your ability to retire.

Catch-up retirement steps

1. Check your Social Security statement to estimate your future benefits. If you begin accepting benefits at age 62, when you are first eligible, you receive significantly lower benefits for the entire time you are collecting Social Security. Delaying your benefits can increase the amount you receive by 6% to 8% (each year you forego benefits) until you reach age 70.
2. Contribute the maximum to your 401(k) and an IRA. If you are over 50, you can contribute an extra $5,500 to your 401(k), or other employer-sponsored plan, beyond the usual limit each year for a total of $22,000 in 2008. For IRAs, you can contribute an additional $1,000 for a total of $6,000 in 2009.
3. Pay off your debt as fast as you can. If you have credit card debt, create a snowball effect by paying off the card with the highest interest first, then use the money you have been paying on that card to increase your payments on the next until you are debt-free.
4. Once you have paid off credit card debt, pay extra on your mortgage principal to build equity and eventually pay your mortgage in full.
5. After age 62, seniors should gather information about reverse mortgage qualifications. Based on the age of the owners and the equity in the home, a reverse mortgage provides a lump sum of cash, a line of credit or monthly income and does not need to be repaid until the home is sold.
6. Continue working full-time or part-time to generate income and allow you to save longer for your retirement.

A lack of savings may mean you need to defer your retirement, but there are plenty of ways you can reduce your expenses and increase your savings to make a life of leisure possible.