Less than half of Gen X and baby boomers feel ready to retire. Maybe it’s the increased cost of living in recent years, but that isn’t the only reason you might be wary of retiring.
Here are nine things that could be stunting your retirement plans and making your situation worse.
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!1
With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!
This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
You have a lot of credit card debt
Credit card debt is on the rise across the country. The average American carries almost $6,000 in credit card debt, with average monthly interest rates hovering just above 20%.
Credit card payments reduce your monthly cash flow. It's best to pay them off as soon as possible to alleviate your monthly debt burden and use that money for other purposes. A top 0% intro APR card could help you get out of debt sooner.
You live in a high-cost area
If you live in a high-cost-of-living location, you're paying more for your everyday items — most notably, housing, food, and transportation.
Places like Hawaii, California, and New York top the charts for a high cost of living. If you're looking to position yourself better for retirement, consider moving somewhere with a lower cost of living.
You still have an expensive mortgage
Everyone needs a place to live, but a mortgage is one of the biggest monthly expenses. While building equity can be a positive step toward retirement, the monthly financial commitment can prevent you from building more accessible wealth.
If you can eliminate that expense, you could improve your cash flow. With housing costs still on the rise, eliminating your mortgage will help keep your housing costs lower.
Earn $200 cash rewards bonus with this incredible card
There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.
The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.
This card also offers an intro APR of 0% for 12 months from account opening on purchases and qualifying balance transfers (then 19.49%, 24.49%, or 29.49% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.
The best part? There's no annual fee.
You still have a car payment
Car payments seem to be getting bigger and bigger each year. The average monthly new car payment in 2023 was $738. That doesn’t include registration, maintenance, repairs, or gas costs.
That monthly financial obligation can limit your ability to plan for retirement. If you have one (or more) car payments, you might want to reconsider your transportation situation.
You’re all-in on one investment
Choosing one stock, or even one asset to put all your retirement hope in, is risky. If you go all-in, hoping to score big — you could lose it all. Diversifying your investments can help protect you against market downturns and extreme losses.
Spread your retirement investments across a variety of stocks, bonds, and other assets for more protection.
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You’re counting down the clock to 59 1/2
Age 59 1/2 is when you can start withdrawing from your retirement accounts without a penalty. If you’re counting down the days until you can grab that money, you might be worse off than most.
More people than ever are planning on working until 65-70 to help offset the need to rely on Social Security and retirement funds to live.
You haven’t started saving for retirement
If you haven't started saving for retirement yet, you could not only be missing out on compound interest but potentially a 401(k) match from your employer and tax savings. But how much do you actually need?
Fidelity recommends this simple formula to see how you measure up, “Aim to save at least 1x your income by age 30, 3x by 40, 6x by 50, and 8x by 60.” If you haven’t started saving for retirement, the best time to start is today.
You’re in poor health
Health care is a huge cost during retirement. Some estimates put average health care costs after age 65 in the six-figure range. If you aren't looking after yourself now, you could be stuck with higher health care expenses as you age.
Annual physicals and screenings allow your doctor to monitor any changes you’re experiencing as you age and address any concerns you have.
Following proper nutrition and wellness advice like drinking enough water, eating a variety of foods, and moving your body will not only make you feel better but will also likely help save you money in the long run.
You don't have a budget or financial plan
Freewheeling your spending and savings efforts isn't a financial plan or strategy. If you don't take charge of your finances, you may find yourself at retirement with little to show for it.
Budgeting can help make your spending purposeful, offer stability, and allow you to grow your savings and plan for the future.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
Bottom line
It can be tricky to prepare for retirement, especially since you don’t know exactly how much money you’ll need during your golden years.
Past generations have counted on Social Security for retirement support, but as it currently stands, Social Security may run out in 2041.
Rather than ignoring the problem and hoping things work out, you can take control of your retirement plan by making positive changes today.
Lucrative, Flat-Rate Cash Rewards
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Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.49%, 24.49%, or 29.49% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
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