9 Tips to Ensure You’ll Have Enough to Retire

Sooner or later, most of us hope to retire. That day might be decades off, or it could be this year. Either way, you need a good plan to get you from your 9-to-5 job to the promised land of post-work life.

Following are nine tips that can help you accumulate enough to retire when you’re ready to hang up your working shoes.

1. Set a goal for your nest egg

Retirement is just a dream until you put a number on it. As we point out in “9 Ways to Rescue Your Retirement in 2020” you need to have a financial goal in place — and to achieve that goal — before you can retire:

“To fund a nest egg, many investment professionals suggest that people consider saving 10 to 12 times the amount of their last full year of income.

By that logic, if you expect to earn $60,000 in your last full year of work, you should make your goal $600,000 to $720,000. You may not get there, but you’ll be better prepared for retirement than you are now.”

2. Automate your savings

One of the best ways to work toward your goal is to automate your savings. As we suggest in “6 Ways to Heap Up Savings Before You Retire“:

“Have money automatically transferred from a paycheck or checking account into savings. Start with the max you think you can afford. If you guess wrong, you can always reduce the amount later.”

3. Refuse to buy things you don’t need

Vacations are fun, and you shouldn’t skip them. But if you are going away on three major excursions every year, maybe you can trim that number back to just a couple.

Do you really need the fanciest car on the block, or the biggest TV? Never confuse “wants” with “needs.” If you want to retire, you will need to make sacrifices. The sooner you learn this lesson — and begin saving instead of frivolously spending — the more time your wealth will have to compound.

4. Take a little risk and hope for a lot of reward

Yes, the stock market can be a scary place. But history shows that there is no better place to build wealth. The key is to take on just enough risk to make you a little uncomfortable, but not so much that you truly put your retirement at risk. As we say in “7 Mistakes Guaranteed to Ruin Your Retirement“:

“Placing 100% of it in volatile stocks a few years before retirement is a good way to land in the poorhouse. But at the same time, be aggressive enough with allocations to ensure your returns at least outpace inflation.”

5. Keep Uncle Sam’s mitts off your money

One of the best ways to increase your savings is to reduce Uncle Sam’s access to it. So, find ways to lower the impact of taxes on your savings. As we write in “10 Guaranteed Ways to Retire Rich“:

“Traditional retirement accounts let you invest money tax-free now and pay the piper once you make withdrawals in retirement. Meanwhile, Roth IRAs and Roth 401(k)’s tax you now and make the withdrawals tax-free.”

6. Keep expenses down

You cannot control the direction of the stock market, nor can you influence the rates of savings accounts and CDs. The one thing you can do is to control expenses. A 1% difference in fees can cost you tens of thousands of dollars in savings over the course of several decades.

One of the best ways to trim expenses is to invest in low-cost index funds.

7. Avoid making big financial mistakes

A huge financial miscue can quickly put you in a deep hole that will make it much more difficult to retire with a nice-sized nest egg. So, try to avoid mistakes such as buying expensive cars, running up credit card debt or getting divorced.

If these things happen to you, it’s not the end of the world. But the long journey to retirement will likely grow a little longer.

8. Plan to retire to another country

The U.S. is certainly not the cheapest place to live. So, one great way to ensure you will have enough to retire it to plan to live out your golden years someplace where it is more affordable.

For more ideas, check out “10 Countries Where Retirees Can Live Large and Save Big.

9. Stay true to your goal

Remember to stay committed to your goal of retiring in style. Naysayers abound, telling you that you can’t do it or that the universe is arrayed against “little guys and gals” like you.

But that’s just not true. Plenty of people have retired early or paid off massive amounts of debt on relatively modest incomes. So can you.

How to find cheaper car insurance in minutes

Getting a better deal on car insurance doesn't have to be hard. You can have The Zebra, an insurance comparison site compare quotes in just a few minutes and find you the best rates. Consumers save an average of $368 per year, according to the site, so if you're ready to secure your new rate, get started now.

Read Next
Never Put These 8 Things in a Microwave Oven
Never Put These 8 Things in a Microwave Oven

A microwave can be a busy cook’s best friend. But heating certain things in a microwave can cause disaster.

20 Great Part-Time Jobs for Retirees
20 Great Part-Time Jobs for Retirees

Maybe you’re not ready to leave the workplace entirely.

7 Steps to Keep Your Car Looking Like New
7 Steps to Keep Your Car Looking Like New

Take a few steps to preserve the beauty of your car, and you stand to get a lot more money at trade-in time.

Top 5 Activities That People Dream of Doing in Retirement
Top 5 Activities That People Dream of Doing in Retirement

No. 1 isn’t visiting grandkids, and No. 4 might surprise you.

This Pastime Can Keep Your Brain Sharp as You Age
This Pastime Can Keep Your Brain Sharp as You Age

It’s never too late to benefit from taking up this type of activity.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
This Gas Station Scam Is Victimizing More Drivers
This Gas Station Scam Is Victimizing More Drivers

For the second straight year, a growing number of Americans believe they’ve fallen prey to this scam.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

7 Unusual Ways to Declutter Your Home
7 Unusual Ways to Declutter Your Home

Tired of possessions weighing you down? Here are seven ways to declutter painlessly and effectively.

This Is the Most Popular Age for Claiming Social Security
This Is the Most Popular Age for Claiming Social Security

Both men and women are most likely to start receiving Social Security benefits at this age.

Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?
Could You Give Up These 7 Expenses to Save Thousands of Dollars a Year?

You could save more than $30,000 by setting aside these costly expenses for just one year.

21 Things You Should Always Buy at a Dollar Store
21 Things You Should Always Buy at a Dollar Store

Dollar stores have great bargains on both everyday and occasional purchases.

6 Things You Should Never Buy at Trader Joe’s
6 Things You Should Never Buy at Trader Joe’s

We love Trader Joe’s for plenty of reasons. But think twice about this handful of products.

Don’t Toss These 7 Household Items — Sell Them
Don’t Toss These 7 Household Items — Sell Them

Here’s how to earn cash as you give new life to these unwanted items.

6 Legal Documents Retirees Need — but Don’t Have
6 Legal Documents Retirees Need — but Don’t Have

Few retirees have these documents that are crucial to their golden years — especially during a pandemic.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

Eat This Food If You Want to Avoid Alzheimer’s Disease
Eat This Food If You Want to Avoid Alzheimer’s Disease

One type of food associated with the Mediterranean diet offers especially large benefits.

11 Expenses That Quietly Drain Your Wallet
11 Expenses That Quietly Drain Your Wallet

It’s scandalously easy to overspend in these areas of your life.

9 Dumb Ways You Are Ruining Your Home Value
9 Dumb Ways You Are Ruining Your Home Value

Homeowners, beware these mistakes that can drive away potential buyers.

18 Amazon Purchases That We Are Loving Right Now
18 Amazon Purchases That We Are Loving Right Now

These practical products make everyday life a little easier.

5 Awesome Places You Can Retire Overseas on $2,000 a Month or Less
5 Awesome Places You Can Retire Overseas on $2,000 a Month or Less

In this week’s podcast: tips on retiring overseas — from someone who’s been helping American expats for decades.

7 Tips for Building an Emergency Stockpile
7 Tips for Building an Emergency Stockpile

A pandemic or natural disaster could leave you reliant on your existing food supply. Is your pantry prepared?

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

15 Outrageously Overpriced Products — and How to Save on Them
15 Outrageously Overpriced Products — and How to Save on Them

Retailers mark up products by hundreds of times their cost — but you don’t have to pay the premium.

Why Half of Retirees Now Owe Taxes on Social Security
Why Half of Retirees Now Owe Taxes on Social Security

Growing numbers of seniors are paying taxes on their Social Security benefits, but you might be able to avoid this fate.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.