We often hear that the sooner we start saving for the future, the better, especially since retirement could potentially last for several years. Many of us find ourselves wondering if we’re doing enough to help secure our future. The good news? Just being aware and concerned about your retirement may put you ahead of the game. It’s common to feel nervous about the future and the unpredictability of it, but with knowledge and strategies, it’s possible to manage your financial destiny and build a comfortable nest egg for your golden years.
More than half of Americans think they’re behind on their retirement savings.1 If you can relate, it’s a good idea to take a closer look at your current savings portfolio to review estimated expenses, retirement timeline, and how much is saved. On average, experts say retirees need around 70 to 80% of pre-retirement income to live comfortably2, but this number can change based on personal goals and lifestyle. Even if the amount of savings is behind where it should be, there are actions you can take to help increase funds for the future.
To help determine a target amount, remember that most households often spend less in retirement3, so while savings might not be on par with a lifestyle now, they could be suitable down the road. Here are some questions to help determine if retirement savings are on track or if it’s time to play catch-up:
Envision retirement and think if this amount could support those goals. Consider working with a financial professional to crunch numbers, evaluate options, and help determine a path forward that fit your needs.
Without retirement savings, Social Security benefits are typically available, but these benefits often don’t fully replace pre-retirement income potentially leaving individuals in a challenging financial position4. Approaching retirement age without a savings strategy may jeopardize future financial security, so taking action now can be essential to help ensure a more comfortable retirement.
Age 40 and no retirement savings
For those in their 40s who haven’t begun saving for retirement, there’s still ample time to catch up. With a couple of decades likely left before retiring, it’s crucial to start building a diversified financial portfolio. At this age, it may be possible to choose options that take on more risk to potentially yield higher rewards. Additionally, diversifying a retirement income plan with a mix of stocks, bonds, and other assets can help manage risk while still working toward growth. Annuities can provide guaranteed income throughout retirement. This is also a good time to maximize contributions to retirement accounts like a 401(k) or IRA to significantly boost savings. The key is to start now and build a robust strategy that suits personal financial goals.
Age 50 and no retirement savings
For individuals in their 50s, retirement is on the horizon, so creating a retirement savings strategy is important to help ensure there is adequate income for the future. Consider opening a 401(k) or IRA and start making catch-up contributions up to the maximum amount each year. Review and diversify investment options to help manage growth and risk as retirement approaches. Also consider paying off debts, downsizing, or making other lifestyle changes as children mature and become financially independent.
Age 60 and no retirement savings
With retirement arriving, there is less time to build an ample nest egg, but there are still steps you can take to improve financial stability. You might need to review your budget closely to assess current expenses, then adjust spending habits to free up more funds for savings. It may make sense to keep working to continue building retirement savings until more income is accumulated. Additionally, consider exploring part-time work or freelance opportunities to supplement income while contributing to retirement accounts. Consulting a financial professional can help create a targeted plan to help maximize available resources and prepare for a more secure retirement. Taking action now, even in small steps, can make a significant difference.
Whether a person is starting from scratch or re-evaluating their retirement portfolio, there are options to build savings to help achieve a fulfilling retirement.
Maximize company match
Take full advantage of employer-sponsored retirement plans by contributing enough to receive the maximum match, effectively boosting savings without additional out-of-pocket costs.
Increase contribution amount
Gradually raise the percentage of income contributed to retirement accounts to accelerate savings growth and take advantage of compounding interest.
Secure guaranteed income
Consider options like annuities that can provide a steady stream of guaranteed income during retirement, helping to ensure financial stability. Some fixed index annuities can even provide guaranteed income for the rest of a retiree’s life.
Use cash value from life insurance
Permanent life insurance policies with cash value can be used to supplement retirement income while still keeping the death benefit for loved ones secure.
Automate savings
Set up automatic transfers from checking to retirement or savings accounts to ensure consistent saving habits, making it easier to build savings over time without extra effort. Feeling anxious about a late start on retirement savings is understandable, but it’s never too late to take action. The key is to remain proactive and committed to developing a plan that aligns with personal financial goals. No matter a person’s age or income level, meeting with a financial professional and taking steps today can help improve confidence in the journey toward a comfortable retirement.
1 Gillespie, L. (2025, June 26) Bankrates 2024 Annual Emergency Savings Report. Bankrate.
2 “Understanding the Benefits,” Social Security Administration. January 2025.
3 Hurd, Michael D. and Susann Rohwedder, Spending Trajectories After Age 65: Implications for Economic Preparation for Retirement. RAND Corporation, 2024.
4 “Top Ten Facts about Social Security,” Center on Budget and Policy Priorities. May 2024.
5 Mutual funds are not issued by Midland National Life. Financial strength ratings are not available for mutual funds.
The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.
38471R-20 | PRT 12-25
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