Retirement can seem like a distant dream, especially when you’re focused on more pressing priorities—like paying off debt, building an emergency fund, or saving for your next family trip. But starting now, even in small ways, can make a big difference.
Begin by imagining your ideal retirement. What does it look like? Where will you live? Will you travel often? On average, Americans over 65 spend about $52,000 per year, according to the U.S. Bureau of Labor Statistics. Will that be enough to support the lifestyle you want?
Since no one can predict the future exactly, try using a retirement calculator (like the one at AARP.org). It will ask for your current age, salary, savings, and target retirement date, then estimate how much you’ll need and how much you’re on track to have.
Once you have a number, ask yourself what you can do to reach it. If you’ve paid off high-interest debt and built a 6-month emergency fund, consider maximizing your retirement contributions. For 2024, the annual limits are $23,000 for a 401(k) and $7,000 for an IRA. If you’re 50 or older, you can contribute even more.
Still working on your short-term savings or paying off debt? Try increasing your retirement contributions by just 1%—every little bit helps. One financial advisor shared a story about a client who began saving just $10 a week. That simple step grew into a habit that eventually helped him retire at 56.
A smart tip: When you pay off a big expense like a mortgage, reroute 50% of that payment into a high-yield savings or retirement account.
If all this feels overwhelming, consider meeting with a financial advisor. You can check credentials at investor.gov, or connect with a free volunteer advisor through SavvyLadies.org.
And when the money worries creep in late at night? Take a deep breath and picture how it will feel to reach your financial goals. As one expert put it: “You don’t have to be perfect—just make progress.”
Facing your finances might feel scary, but avoiding them keeps you stuck. Shine a light on your goals, and you’ll be surprised how empowering it can feel.
