Alert
Close

We’re Giving Away $50,000! Enter Now. See Official Rules

Highlights

Close

Contests and
Sweeps

Driver Safety

Piggy bank on the road - AARP Driver Safety

Take the new AARP Smart Driver Course!

Happy African American couple

AARP Books

Visit the Books Section

Enjoy titles on retirement, Social Security, and becoming debt-free.

Jobs You Might Like

most popular
articles

Viewed

Are You Ready for Retirement?

Your nest egg may be bigger than you think

nest egg, retirement, money, chatzky, savings, robin's eggs

Don't suddenly boost your saving by 10 to 15 percent. Instead, nudge yourself by saving 2 or 3 percent more. — Photo by Christopher Griffin/TrunkArchive.com

En español | I blame myself.

Well, myself and the rest of the financial press. For years we've warned you to save more, citing studies such as the Employee Benefit Research Institute's (EBRI's) Retirement Readiness Rating, which states that roughly 45 percent of boomers risk not having enough for basic expenses and health care costs.

And we've managed to scare a lot of people. One study from Allianz Life Insurance found that 61 percent of respondents ages 44 through 75 feared an empty bank account more than death itself.

Time for some reassurance. Vanguard Center for Retirement Research director Steve Utkus looked at the EBRI data and thinks you might not be in such big trouble.

The reason: Studies like EBRI's take a black-and-white approach - either you're ready or you're not. Utkus sees another shade. He says 20 to 30 percent of Americans are "partially ready." Add them to the 55 percent deemed prepared and our national retirement prognosis is less dire. The trick is to get from partially to really ready. How?

Find your finish line. According to Allianz, 36 percent of study participants don't know how long their savings will last. Big mistake. Run your numbers with an online calculator. AARP offers one; others include the Fidelity myPlan Snapshot and Prudential's Retirement Nest Egg Calculator.

Save a little more. Don't suddenly boost your saving by 10 to 15 percent. Instead, nudge yourself by saving 2 or 3 percent more, starting now. "That's the amount people can sneak out of their paychecks without noticing," Utkus says. "Two years from now, do it again."

Work a little longer. Go to the Ballpark E$timate from the American Savings Education Council and change your retirement age from 65 to 68; you'll see how valuable a few extra years can be.

Additional reporting by Arielle O'Shea

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

Advertisement

The Cheap Life

Jeff Yeager Cheap Life Ultimate Cheapskate AARP YouTube web series save money

Catch the latest episode of The Cheap Life starring Jeff Yeager, AARP's Ultimate Cheapskate. Watch

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

Member Benefits HomeServe

Members can protect their homes with comprehensive repair plans from HomeServe.

AARP Credit card from Chase

Members can get cash back rewards on purchases with the AARP® Credit Card from Chase.

Woman holding smartphone in city, Google map tool

Members can find discounts on the go via the AARP® Member Advantages Offer Finder app.

Member Benefits

Join or renew today! AARP members receive exclusive member benefits & affect social change.

Rewards for Good

Your Points Balance:

Learn More

Earn points for completing free online activities designed to enrich your life.

Find more ways to earn points

Redeem your points to save on merchandise, travel, and more.

Find more ways to redeem points

Advertisement

Advance your skills. Transform your career.

Explore your learning possibilities.