Everyone hopes that their reward for decades of hard work will be decades more to enjoy the fruits of their labor.
But if you ask financial guru Suze Orman, the average American is nowhere near ready. Their savings won’t last decades — they’ll last about three years.
Northwestern Mutual’s latest study shows that while many people took advantage of the pandemic to save more, the average retirement savings dropped in 2022 from $73,000 to $62,000. And the reality is that seniors 65 and older spend an average of $46,000 a year, the Bureau of Labor Statistics says.
If you want more than three good years, Orman’s book The Ultimate Retirement Guide for 50+ offers five key moves you can make today to set yourself up for a happy retirement. Here’s how to get started.
- Too many Americans are still missing out on cheaper home insurance
- A TikToker paid off $17,000 in credit card debt by ‘cash stuffing’ — can it work for you?
- What do Ashton Kutcher and a Nobel Prize-winning economist have in common? An investing app that turns spare change into a diversified portfolio
Take a hard look at your finances
If you haven’t already, Orman says it’s time to buckle down and take a deep look through your budget.
Compare what you’re spending to what you’re saving. Trim the fat where you can and cut back on any unnecessary spending so you can allocate more to your retirement savings column.
Do you own a home and are you planning to stay in it through retirement? Then Orman says you need to come up with a plan now to ensure you’ll have your mortgage fully paid off before you retire.
Downsize your home
You may have plenty of sentimental reasons to want to stay in your current home, but if it’s more space than you need and you can make money off of it, you may want to consider selling now.
Not waiting until you have to sell the house makes sense, Orman says, because if you invest the profits now, you’ll accrue much more interest than if you waited another 10 or 15 years.
“I don’t want you to wait till you’re 60 or 70 to sell this home,” she says. “I want you to downsize right now, so that you can start saving more money right now.”</…….