Are you 50 years old with very little savings? Here’s a shockingly simple 3-step plan to retire by 58

If you're in your 50s with minimal savings for retirement, don't despair. A recent AARP study reveals that nearly 1 in 5 Americans over 50 have no retirement savings. But it's not too late to plan for your golden years. Here's a straightforward three-step strategy to help you retire by age 58.

First, boost your income by as much as possible. Earn extra money through a side gig or by pushing your career to its limits. Even a $1,000 monthly increase could make a significant difference. If you invest this extra $1,000 in a low-cost index fund tracking the S&P 500, which historically has returned about 10% annually, it could grow to around $143,000 in eight years.

Second, generate passive income. Consider platforms like Arrived, backed by investors including Jeff Bezos, that allow you to invest in rental properties with as little as $100. For a limited time, opening an account and adding $1,000 or more earns you a 1% match. Even with $1,000 invested, you could earn $143,000 over eight years. Combine this with extra income from your side gig, and you're looking at a nest egg of $286,000.

Third, manage your expenses and save diligently. Aim to save 15% of your income. With a $80,000 annual income, that translates to $12,000 saved annually. Invest this money in a low-cost index fund with a 10% return, and it could grow to another $143,000 in eight years. Combined with income from your side gig, you'd have a total of $286,000 in retirement savings.

Even if you retire at 58, a $286,000 nest egg could provide around $11,500 a year in passive cash flow, following the 4% rule. Alternatively, you could invest in exchange-traded funds (ETFs) for diversification. With minimal investment, such as $5 a month, Acorns can help you start investing and even provide a $20 bonus to kickstart your journey.

Retiring at 70 could provide additional security, allowing you to deploy this plan over a longer period. Delaying Social Security until 70 could increase your monthly benefit by up to 24%. By saving $1,000 a month from your side gig and another $1,000 from aggressive savings, you could accumulate $718,259 from 50 to 70, even starting with $0. This approach requires patience and discipline, but it can help you achieve a comfortable retirement without needing complex strategies or luck.