Retirement should be a time to savor life’s rewards, but without a solid financial plan, it can quickly become a chapter filled with stress and uncertainty. Are you truly ready for what lies ahead?
Research reveals that only 47% of workers over 40 have tried to calculate how much they’ll need for retirement. Nearly 70% of people over 65 will require long-term care at some point, with healthcare costs alone potentially reaching $315,000 for a couple.
Suze Orman cautions that believing you are financially ready for retirement may lead to financial issues, so planning is best. Here, we outline 12 significant money moves, backed by expert insights and hard statistics, to help you confidently turn the page to your next chapter.
Pay Down High-Interest Debt
According to Suze Orman, it’s essential to remove high-interest debt and credit cards from your life before you retire. When you leave your high-interest debts on credit cards unpaid, interest continues to grow and eats into your savings, which can make you feel threatened during retirement.
With the median credit card interest rate in the U.S. at approximately 24.20% as of May 2025 (Investopedia), this kind of debt can become an overwhelming burden, especially when living on a fixed retirement income. Some ways to save on your debt include consolidating it, requesting lower interest rates, or using credit cards with lower fees to transfer your balances.
By resolving these debts before retirement, you’ll free up more income for your lifestyle and unexpected expenses.
Understand Your Retirement Expenses
A secure retirement depends on knowing how much you will need to live on after retirement. Suze Orman advises retirees to determine their primary monthly expenses, such as rent or mortgage, meals, healthcare, insurance, and leisure activities. Without making a budget, you could face surprises with your money.
According to Fidelity, a typical couple retiring at 65 will spend approximately $315,000 on healthcare in retirement, excluding expenses for items such as transportation and home maintenance.
Use calculators online or meet with a professional advisor to make in-depth factor projections before you retire. When you know ahead of time what you have to pay for, you can match your savings and investments to suit your plans.
Max Out Retirement Contributions
Maximizing contributions to retirement accounts is one of the most effective ways to secure your financial future. Orman suggests making the most of 401(k)s, IRAs, and Health Savings Accounts (HSAs). For individuals over 50, catch-up contributions provide an opportunity to boost retirement savings significantly during the final stretch of your career.
Regrettably, only about half of workers over 40 know how much they should save for their retirement, reports TIAA Institute. Be sure to take advantage of matching contributions if your employer offers them. Try to contribute enough to capture the full matching amount. As a result, you may have thousands more ready for retirement than you had before.
Switch to Roth Accounts
According to Suze Orman, you should consider moving your savings to Roth accounts to get both tax-free growth and withdrawals. When your Roth account is at least five years old, and you meet the age rule, you will not have to pay taxes when withdrawing your funds in retirement.
Being proactive about your tax strategy will be beneficial, as experts anticipate future tax increases. The Investment Company Institute found that, in 2023, only 23% of U.S. households own a Roth IRA, which could mean countless Americans are missing out on the many benefits of this financial tool.
If you plan to switch to Roth accounts, consider doing it when the market falls, as you’ll pay less tax on the transfer.
Build a Diversified Portfolio
When you retire, maintaining an investment portfolio with a diverse range of assets helps you manage risks and grow your assets over time. Suze Orman recommends a diversified portfolio comprising stocks, bonds, and alternative investments to create balance and mitigate vulnerability during market downturns.
For example, during the 2008 financial crisis, portfolios heavily invested in equities experienced average losses of over 40%, according to Cowrywise. Adjusting your investments yearly ensures your portfolio aligns with your comfort level with the risk and your evolving goals.
Also, you might include dividend-paying stocks or REITs to ensure you get consistent income after you retire.
Account for Inflation
Retirees often underestimate the impact of inflation, which can erode their purchasing power over time. Suze Orman advises retirees to plan for the inevitable rise in costs. Over the past 20 years, U.S. inflation has averaged about 2.4% annually, according to the Bureau of Labor Statistics, but periods of higher inflation could have a significant impact on your savings.
It is a good idea to diversify your investment mix by adding TIPS, commodities, or real estate to help beat inflation. Considering inflation in your retirement strategy helps ensure that your money isn’t devalued.
Delay Social Security
Waiting until you turn 70 to claim Social Security protection is better, according to Suze Orman. You can receive up to 77% more money per month by delaying benefits and ensuring you have dependable income all the time.
Orman encourages using tools like the Social Security Administration’s benefits calculator to determine the optimal time to start claiming based on your circumstances. If you can manage it, consider using alternative savings or income sources instead of collecting Social Security early, as this can significantly improve your retirement finances.
Put Yourself First
Many retirees want to ensure they leave something for their kids or grandchildren. Suze Orman stresses the importance of prioritizing your financial stability first. “It’s not about giving it to the kids… It’s about making sure you are absolutely OK,” she says.
A small fund set aside for emergencies prevents you from being in financial trouble. Helping yourself financially helps you provide better support for others when you look ahead.
Plan Long-Term Care
Since three-quarters of Americans over 65 will sooner or later require long-term care, Orman suggests getting ready for those expenses now instead of later. Annual spending on long-term care usually varies from $50,000 to $100,000, the U.S. Department of Health and Human Services states, depending on a person’s specific needs.
To mitigate these potentially overwhelming expenses, consider hybrid insurance policies that combine long-term care with life insurance or standalone long-term care policies. Being prepared ahead of time allows you to have peace of mind and receive the care you deserve.
Organize Legal Documents
Estate planning is a critical aspect of preparing for retirement. According to Suze Orman, it is essential to have your will, a revocable trust, power of attorney, and healthcare directives all ready and in one place. They allow for easier control of your estate and make your requests known.
If you want more peace of mind, reach out to a lawyer who focuses on elder law. Ensure that all trusted family members or your executors can easily find both digital and hard copy versions of these essential papers if an emergency occurs.
Use Smart Retirement Tools
With digital help, retirement planning is both easier and more attainable. As Suze Orman advises, making use of budget trackers, retirement tools, and income projection tools will help you focus on your finances. Research shows that individuals with strong financial literacy are far more likely to save consistently for retirement.
Useful tools from FINRA and Mint will guide you to make smart savings and budgeting choices along your path to achieving your goals.
Advance Financial Literacy
Improving your financial knowledge is one of the best investments you can make for your retirement. According to the TIAA Institute, retirees with high financial literacy are 90% more likely to save consistently than those with low literacy.
Try using free information on the internet, books, or local classes to learn more about retirement, investments, and budgeting. Smart decisions for the future are possible when you take the time to build your financial literacy.
Following these 12 financial moves ensures a solid foundation for retirement, providing peace of mind and financial confidence to enjoy your golden years. It isn’t luck that matters for retirement planning, but rather strategies, discipline, and readiness.
Be sure to do something now to protect your financial future. If you haven’t done so, speak to a financial advisor or look into helpful online resources for personal recommendations on how to reach your retirement goals.
Disclaimer – The Finance key does not provide and does not intend to provide financial, investment, tax, or legal advice. Information contained in this article is for informational and educational purposes only. This list is solely the author’s opinion based on research and publicly available information. The inclusion of links to third-party content is not an endorsement by The Finance Key of such content or services. Please do your due diligence and use your discretion.
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