Retirement Retirement Planning

Kevin O'Leary Says Your Retirement Isn't Safe Until You've Done These 8 Things

Taking these steps can help boost the odds of retirement success.

By Chris Kissell , Edited by Amanda Machado

Updated April 14, 2026

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Retirement opens an exciting new chapter in life. But the transition to post-work life can also be a bit scary as you try to avoid money mistakes that could put you into financial jeopardy during your golden years.

Famed investor and "Shark Tank" star Kevin O'Leary has doled out a lot of financial advice over the years. Here are eight things he says you must do before retirement is safe.

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Become financially literate

In recent years, OLeary has focused on helping others achieve financial literacy. As he told the Motley Fool, "we've got to make it easy" for people to invest intelligently.

Try to learn as much as you can about money before you retire. Read personal finance articles and books and listen to money podcasts. If you want additional help, sit down with a financial advisor.

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Save 15% a year for many years

O'Leary said in an interview on Good Morning America that in the decades leading up to your golden years, you should earmark 15% of earnings for retirement savings.

If you don't think you can manage that, O'Leary disagrees, saying flatly, "Yes, you can." "Stop buying all that crap you don't need," he said. "You have to adjust your lifestyle to make sure you put 15% away."

O'Leary adds that 15% is the minimum amount you should save for retirement. If you save more today, your future self will be the beneficiary.

Banish the thought that the government will save you

Many people count on Social Security to save them from a lifetime of poor financial decisions. Others hope Medicare will cover all their medical expenses.

But the reality is different. Social Security was never meant to be anyone's only source of income in retirement, according to the Social Security Administration. And while Medicare covers many costs, it will not shield you from other expenses. You will still be required to cover many health care costs out of pocket.

O'Leary told the Motley Fool that it is foolish to expect the government to bail you out during retirement. Instead, take care of yourself. "You can't be guaranteed when you're 65 that anyone will be there for you," he said.

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Get rid of debt

It is difficult to prepare yourself financially for retirement if you are chained to a lot of debt. Those who are deeply in the red should consider putting off retirement until their financial situation improves.

Credit card debt often comes with very high interest rates, so that might be the best place to start when focusing on eliminating debt.

According to Fox Business, O'Leary has some straightforward advice for those who are struggling financially: "Pay off their credit cards immediately, that's what they should do," he said.

Create a budget

Those who are nearing retirement but still carrying a lot of debt should not give up hope. Instead, it's time to grab the reins and take control of the financial future.

In the book "Cold, Hard Truth on Men, Women & Money," O'Leary wrote: "If you're heading toward retirement with debt, now's the time to budget like you've never budgeted before. I mean it."

Crafting a budget can help you see exactly where your money goes each month. That should give you a clearer picture of where to cut spending so you can redirect the money toward paying off debt.

Save 3 months of salary in an emergency fund

O'Leary urges people to build an emergency fund so they will have a pot of money to turn to if things go south financially. He recommends tucking the equivalent of three months of salary into this account.

A well-funded emergency fund can be particularly important once you retire, since you can no longer count on regular income from a job to bail you out during tough financial times.

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Be open to working a part-time job

Do not retire until you are sure you can afford it, O'Leary says. In his book, he writes that you should be ready to toss your retirement plan at 55 or even 65 if your finances look shaky.

Taking on extra work is one way to accelerate the journey to financial freedom. "Get a part-time job, too, while you're at it and while you're still spry enough to handle it," he said.

Give retirement a trial run

Retirement can be a big mystery until you finally enter it. O'Leary suggests giving retirement a bit of a trial run by living as if you are retired before you actually stop working.

In the years leading up to retirement, save as much as you can. But also "use those years to practice living on a lot less, lowering your expectations and cultivating disciplined spending habits," he said.

Doing this will help you develop the financial habits that will serve you well through a long retirement.

Bottom line

As O'Leary makes clear, you should not retire until you have carefully thought about many of the challenges that come with post-work life.

Before you retire, check where you stand financially and make sure your finances are on a solid foundation. If they are not, consider delaying retirement while you work to overcome the obstacles that currently stand between you and your golden years.

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