Heading into retirement, many people are unsure if they will have enough money for the rest of their lives.
While there is no particular number to assure that you will have exactly as much as you need, there are ways to figure out if you’re on the road for a stress-free retirement.
Here are signs you’re doing well financially when you’re over 65.
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
You’re mindful about spending
![woman taking out us dollar](https://cdn.financebuzz.com/filters:quality(75)/images/2023/04/27/woman_taking_out_us_dollar_bills_from_her_pocket_wallet.jpg)
Just because you’re retired, doesn’t mean you spend money recklessly. Studies show retirees don’t actually spend that much less than they did when they were working.
You are likely to maintain the same lifestyle you did when you had a full-time job. If you’re doing well financially, it’s likely because you don’t waste money.
You home is paid off
![sunset in the city](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/30/sunset-in-the-city-adobe.jpg)
According to the American Community Survey, 34% of those over age 65 were still carrying a mortgage in 2022.
Living in a paid-off home means you have eliminated one of your largest monthly expenses and possibly your largest debt. You also have an asset that can be sold or equity that can be accessed, if needed.
If your mortgage is paid off, it’s a sign that you’ve managed your finances well.
You have hobbies
![senior people doing exercise](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/30/senior-people-doing-exercise-adobe.jpg)
Research shows that having hobbies can contribute to your overall happiness and well-being. However, if you’re struggling financially or worried about having enough, spending money on hobbies isn’t in the cards.
Whether you like to collect Disney snow globes or play nine holes of golf every morning, having room in your finances for hobbies is a good sign that you’re doing well.
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 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.
You travel often
![person walking through airport terminal](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/30/person-walking-through-airport-terminal-adobe.jpg)
One of the top things people look forward to in retirement is traveling. If you use the best travel credit card, not only will you earn points on purchases but you may also enjoy benefits like airport lounges, travel insurance, points, upgrades, and discounts.
You’re in good shape financially if you’re able to travel leisurely and often.
Pro tip: Make sure to pay your balance in full each month, so you don’t waste money on interest charges.
You’re already retired
![calm autumn holidays at home](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/30/calm-autumn-holidays-at-home-adobe.jpg)
According to a Gallup survey in 2022, only 30% of adults had retired before age 65. Even the Social Security Administration has set the full retirement age at 67 for those born in 1960 or later.
If you are over 65 and already retired, you are in the minority. This is likely because you’ve managed your finances well and are able to sustain yourself without a 9-to-5 job.
You have 10x your income saved for retirement
![man using calculator](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/30/man-using-calculator-adobe.jpg)
Everyone’s financial needs during retirement will be different. Depending on cost of living and health concerns, you may need more or less than your neighbor. Either way, you will need enough to live on.
Some experts recommend having 10 times your income saved by age 67 to be on track for retirement. If you already have that, you’re on the right track financially.
You max out your 401(k) account every year
![businessman counts money](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/30/businessman-counts-money-adobe.jpg)
Using tax-advantaged accounts is a great way to build your nest egg for retirement. And if you contributed to your account and earned the employer match throughout your working years, you should have a hefty account by the time you’re 65.
If you’re still working and saving, you can contribute up to $23,000 to your 401(k) in 2024 and an additional $7,500 if you’re over the age of 50.
You’re waiting to take Social Security
![plan and social security](https://cdn.financebuzz.com/filters:quality(75)/images/2022/07/06/plan_and_social_security.jpg)
While you can start taking Social Security at age 62, waiting until you are age 70 can have huge financial benefits. If you delay taking Social Security, you can get up to 132% of your monthly benefit.
Being in a financial position to wait to take these payments means that you have other means to support yourself and you’re in a good spot.
You have no credit card debt
![nfc cashless payment](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/30/nfc-cashless-payment-adobe.jpg)
Almost 34% of people aged 65 to 74 are carrying a credit card balance, according to the Federal Reserve. Not only does the payment take a bite out of your monthly budget, but not paying off the balance means you’re accruing interest which just increases your debt.
You’re doing well if you pay off your balances each month and don’t ever pay interest.
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.
You have long-term care insurance
![doctor screening old patient](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/30/doctor-screening-old-patient-adobe.jpg)
Unfortunately, Medicare and Medigap insurance don’t cover long-term care needs. The Administration on Aging estimates that 70% of people over age 65 will need some type of long-term care.
If you have already obtained long-term care insurance, you are ahead of the curve.
You contribute to charities
![charity donation center](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/30/charity-donation-center-adobe.jpg)
Donating to charity not only helps others but can help you as well. If you itemize your taxes, you may be able to get a tax deduction based on your donations. Giving to others can also help increase your happiness and improve your health.
Being financially fit over 65 means you can contribute to causes that matter to you.
You have a diversified portfolio
![financial and investment products](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/30/financial-and-investment-products-adobe.jpg)
As you age, your investment portfolio should shift as well. You don’t want to stunt your investment growth, but you need to make sure you are protected during volatility in the market and economy.
Your stock allocation should equal 100 minus your age. So if you’re 65 now, you should have 35% of your investments in stocks and the rest in bonds.
If you have already moved your portfolio to a moderately conservative position, you are on the right track financially.
Bottom line
![senior woman smiling while drawing](https://cdn.financebuzz.com/filters:quality(75)/images/2024/05/30/senior-woman-smiling-while-drawing-adobe.jpg)
If you’re reading this list and feeling behind, don’t stress. There are steps to take if you’re just getting by.
Yet these markers can help you evaluate your financial situation and guide you to make changes if you need to. How you feel about your financial life is the most important indicator.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
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. 20.24%, 25.24%, or 29.99% 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.