10 Little Secrets About Retirement Planning You Need to Know

NEWS & TRENDING - RETIREMENT NEWS
Retirement planning can be difficult. Here are 10 little secrets to help you improve your golden years.
Updated May 8, 2024
Fact checked
woman looking serious and curious listening

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

With inflation making headlines and costs seeming higher than ever, you might worry that retirement is out of reach. But it’s important to remember that retirement planning is a lifelong journey.

Whether you feel confident in your plan to retire early or you know you need to get started, you probably don’t know everything that can help you grow your wealth.

That’s why we’ve compiled 10 little secrets that can get you on track for your goals and help you improve your overall lifestyle when your golden years arrive.

Eliminate your late tax debt

Each year, the IRS forgives millions in unpaid taxes. If you have more than $10,000 in tax debt, or have 3+ years of unfiled taxes, you could get forgiveness too. You might be eligible to lower the amount you owe, or eliminate your tax debt completely.

Easy Tax Relief could help you lower or get out of your tax debt for good. They’re well respected in the industry and have been recognized for their ethical standards when dealing with tax debt. While most tax companies just put you on a payment plan and file your taxes for you, Easy Tax Relief talks to the IRS directly. They can help you pay off your tax debt faster while potentially reducing what you owe.

Important: Not everyone will qualify. To take advantage of this special program you must owe more than $10,000 in past-due taxes.

Fill out this form to get started

Artificial intelligence is a financial tool

AI Farm/Adobe digital graph chart in stock trade market

Artificial intelligence (AI) only recently started making headlines, but it’s been helping humans with money for years.

Companies use AI to make the retirement planning process more accessible and to help select the best mix of assets for investors.

That is good news for you because it can make planning easier. Large financial companies like MassMutual have harnessed the power of AI to help people plan with positive results.

Making a plan is half the battle

bnenin/Adobe concentrated woman making plan on sticky notes

It’s hard to predict how much you’ll need in retirement. Plus, even after calculating your number, planning how to save that much money can be even more challenging.

The good news is that even if you don’t stick to your plan, you’re better off for having made one. As long as you know where you’re headed with retirement savings, you’ve set yourself up for success.

Work benefits are underutilized

Mary Perry/Adobe 401(k) Plans

Roughly 68% of Americans have access to a retirement account sponsored by their employer, but only 51% utilize those accounts. If you’re part of the other 49%, it might be time to start saving.

Retirement benefits through work are part of your overall compensation package. Plus, employers will often match contributions up to a certain percentage, so you could be losing free money by not participating.

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 15 months from account opening on purchases and qualifying balance transfers (then 20.24%, 25.24%, or 29.99% 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.

Click here to apply now.

Retirement doesn’t have to look the same for everyone

Prostock-studio/Adobe grandpa and grandson sketching on the floor

While retirement might look a certain way to most people, there's no single way for you to live your golden years. You can choose whatever retirement lifestyle you want if you plan ahead.

If you love the beach, then plan for a tropical retirement. But if you’re someone who wants to stay where you live and enjoy quiet days at home, that’s okay too. Don’t let someone else’s retirement keep you from planning for what you want.

To get started, write a paragraph describing your ideal retirement. Be as specific as possible and include details. Once you have your perfect lifestyle, calculate how much it will cost and start saving.

It’s never too late to begin

fizkes/Adobe elderly woman sitting on couch feeling excited

Saving enough for a stress-free retirement can feel overwhelming because the amount you need is likely more than you’ve ever seen in a single account. This paralyzes people from moving forward.

Luckily, it’s not too late to begin if you’ve put off saving for retirement or feel behind. The best thing you can do for your future is to start saving right now, regardless of your age. It all counts and will help create a more comfortable retirement.

4% might be the magic number

fizkes/Adobe Senior Couple planning finances

According to some financial experts, the 4% rule is a rule of thumb for how much you can withdraw from your accounts each year in retirement without running out of money.

In other words, it’s considered to be a safe withdrawal rate. You can use different safe withdrawal rate calculators to determine your comfort level.

Remember, retirement planning is complex, and a lot can impact how much you’ll be able to withdraw each year in retirement.

You can take advantage of catch-up contributions

Vitalii Vodolazskyi/Adobe IRA written on a stick and jar with dollars

If you’re over 50 years old, you can make additional contributions to your retirement accounts. These contributions are often known as “catch-up contributions.”

According to the IRS, the limits in 2024 are $1,000 for an IRA, $3,500 for a SIMPLE IRA, and $7,500 in 401(k), 403(b), or 457(b).

This gives you a chance to catch up if you’re behind on retirement savings. But even if you’re not behind, saving a little extra could still be worth it.

Social Security might not help you much

gunnar3000/Adobe social security benefits

Some people wonder whether or not Social Security will be available when future generations retire.

If you feel nervous, you could calculate two retirement numbers, one with Social Security and one without. If you’re prepared for retirement without Social Security, then you’ll have extra income if you’re still able to collect.

Health insurance can be expensive in retirement

Annap/Adobe application for health coverage

For many Americans, health insurance can be a considerable expense during their working years. It often continues to be a significant retirement expense, especially if you retire before you’re eligible for Medicare.

Because of that, it might be a good idea to plan for health insurance expenses in retirement well in advance. Take time to understand your options and how they might impact your budget.

Take advantage of historically high rates to grow your wealth

Are your savings just sitting around, not earning much interest? It's time to make a change and put your money to work for you! With CloudBank 24/7, you can earn more interest on your money today ... while keeping your cash OUT of the stock market.

Here’s their secret: CloudBank 24/7 amplifies your money by doing what many banks refuse to do … paying you a rare 5.24% APY (annual percentage yield)12 on your cash.

When you deposit your money into this high-yield savings account, you can supercharge your emergency fund, short-term savings, return on cash, and more with interest income generated from their high 5.24% APY payout.

The best part? There are no fees, you can withdraw your money at any time, and opening an account takes as little as 3 minutes. CloudBank 24/7 is FDIC-insured through Third Coast Bank SSB and cybersecurity is a top priority, ensuring your data is kept safe.

Limited Time Bonus: Earn up to $2,000 when you refer friends and family to Raisin. Visit site to learn more.

Click here to open a CloudBank 24/7 online savings account

No one knows it all

Vadim Pastuh/Adobe elderly couple is looking puzzled on the laptop screen

If you ever feel like you’re behind in planning for retirement, you’re not alone. About half of all American households don’t have any retirement savings.

Even if someone in your life seems to have it all together with their finances, they probably could improve their overall retirement planning.

When it comes to planning for retirement, no one knows it all. Most people figure it out as they go. So don’t get down on yourself if you’re still learning, and remember that just doing it is the most important part of saving for retirement.

Bottom line

Deen Jacobs/peopleimages.com/Adobe senior couple on sofa with bills

Retirement planning is not a task you complete in a day and never have to think about again. It’s a strategic, years-long project that might be center stage some years and put on the back burner during others.

But as you plan for retirement, every step is an important one. It’s vital to actively save money, crush your debt, invest where you can, and cultivate a healthy financial mindset. Your future self will (probably) thank you.

Lucrative, Flat-Rate Cash Rewards

5.0

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 2% cash rewards on purchases

Benefits and Drawbacks
Card Details

Want to learn how to make an extra $200?

Get proven ways to earn extra cash from your phone, computer, & more with Extra.

You will receive emails from FinanceBuzz.com. Unsubscribe at any time. Privacy Policy

  • Vetted side hustles
  • Exclusive offers to save money daily
  • Expert tips to help manage and escape debt