NEWSLETTER
It is not a secret that Americans are not prepared for retirement.
A 2024 survey conducted by the Bipartisan Policy Center found that 49% of Americans from 55 to 64 years old do not feel safe their retirement planning. Among those ages 45 to 54, that percentage increases to 52%.
Americans from all age groups also lack retirement savings. The Federal Reserve obtains average retirement savings among young people from 65 to 74 years in just $ 200,000, while those between the ages of 55 and 64 track a bit at $ 185,000.
Related: Suze Orman warns Americans who underestimate the need for key retirement
But a recent mutual survey found that Americans think $ 1.46 million will be needed in savings to achieve comfortable retirement. Since the nest eggs of many major Americans are not close, it is clear that some retirees will have to make some sacrifices.
But as important as it is to have savings for retirement, it is equally important to have a plan for the unexpected. And the Financial Guru Suze Orman warns that if he is not preparing for these two events, his future financial security is putting at risk.
Suze Orman warns about retirement stressors
It is not unusual for life not to go as planned, financially speaking. But Orman warns that many Americans are better equipped to deal with setbacks during their years of work than during retirement, when money tends to be much more strict.
Orman specifically warns Americans who prepare for two possibilities that could shake their retirement plans.
Related: Dave Ramsey issues Verification of Social Security reality
The first is a previous retirement of the expected. A Transamerica 2024 survey found that 58% of retirees abandoned the workforce before what had originally anticipated. And the reasons extended from health problems to loss of employment.
The latter can be especially harmful to older workers due to the prevalence of age discrimination in the workforce. AARP's investigation shows that 64% of workers over 50 have informed having seen or experienced age discrimination while they are at work, which means that a dismissal at an advanced age could become a permanent one.
Orman suggests that the pre-re-planned this situation, even if it does not end up being.
“How would your retirement be if you retired at 62?” Ask Orman. “Could you find a part -time job to generate some income? Could you continue with your plan to delay the Social Security claim? Would you have the mortgage to pay?”
Orman's second possibility warns Americans who think is to be beaten with a storm of unexpected expenses, whether they are home repairs, medical invoices or something else.
“If that happened, would I have the cash on an emergency fund to cover things?” Orman asks.
Suze Orman says there is a simple way to prepare for the unexpected
As nobody has a glass ball, it is impossible to know what surprising financial surprises expect, in life and retirement. Then Orman calls “save more now” an obvious solution.
Older workers have the excellent opportunity to fill their 401 (k) S this year thanks to a super struggled for workers aged 60 to 63.
Related: Dave Ramsey has surprising advice on Social Security
“If you are between 60 and 63, know that there is a new rule in 2025 that allows recovery contributions 401 (K) of large size,” says Orman. “While any person between the ages of 50-59 can contribute with a total of $ 31,000 this year, if it is 60-63, the contribution limit is $ 34,750.”
Orman also suggests that workers think of ways to eliminate expenses and release more money for long -term savings. That could mean reducing customization, becoming a home from a car or retaining the financial support of adult children.
More about Suze Orman
- Suze Orman has blunt words about Social Security for retired Americans
- The author of Finance offers advice to delay the benefits of Social Security
- Suze Orman explains how everyone can tame great money money now
“Reducing spending is where money finds today to generate its emergency savings. It is also worth reducing the cost of staying in retirement,” says Orman.
Recent data from the Investigation Institute of the Society of Actuaries found that 20% of retirees have experienced a financial shock. The more prepared, it is less likely to be an unexpected event to destroy your long -term retirement.
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