Americans Over 50 Don't Feel Ready for Retirement — 4 Ways To Feel More Secure
If you feel uncertain about your finances as you approach retirement, you're not alone.
A recent Western & Southern survey found that 57% of Americans 50 and over reported uncertainty over having enough savings for the rest of their lives, and 51% said they weren't ready for the retirement they wanted. Despite widespread retirement anxiety, respondents pointed to specific factors that would make them feel significantly more financially secure — and these four came out on top.
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Build a Predictable Retirement Income Stream
The most-wanted factor for increased retirement confidence was predictable monthly income, cited by 56% of respondents.
"A predictable monthly income can help provide greater financial confidence by making it easier to plan for ongoing expenses and manage cash flow," said Matt Loveless, vice president at Western & Southern Life.
Building a reliable income strategy often starts with identifying expected income sources, like Social Security, pension benefits, retirement account distributions or part-time employment.
"From there, creating a spending plan that prioritizes essential expenses and includes an emergency fund, when possible, may help support a more stable retirement income throughout different market and economic conditions," Loveless said.
The goal isn't necessarily to increase income — it's to make retirement income more reliable and easier to plan around.
Grow an Emergency Fund for Unexpected Expenses
Having a larger cash or emergency reserve would make 46% of older Americans feel more financially secure.
"A common goal is to save enough cash to cover several months of essential expenses," Loveless said. "However, the appropriate amount depends on factors like income stability, healthcare needs, insurance coverage and whether you are still employed."
Building an emergency fund can take time, but it can be done at any age.
"Consider contributing regularly through automatic transfers or payroll deductions, directing windfalls or bonuses to savings and keeping emergency savings separate from your everyday checking account," Loveless said.
A dedicated cash buffer can help retirees avoid dipping into investments during unexpected emergencies.
Lower Everyday Costs and Monthly Bills
Rising costs and inflation are a major concern for 76% of older Americans, so it tracks that 46% want to have lower day-to-day expenses in order to feel more financially secure.
There are some practical ways to lower everyday costs.
"Identifying automatic and recurring expenses is often a good place to start when looking for ways to reduce day-to-day spending," Loveless said. "Reviewing expenses like housing, insurance, utilities, subscription services, groceries and transportation may uncover opportunities to lower costs with minimal impact on your lifestyle."
Even modest reductions in recurring bills can create meaningful financial breathing room in retirement.
Pay Off Debt Before or During Retirement
Many Americans 50 and over aspire to be debt-free, with 45% saying that paying off all of their debts would make them feel financially secure.
"Paying down debt can help improve retirement confidence by reducing monthly financial obligations and creating more flexibility in a household budget," Loveless said. "One common repayment strategy is to prioritize higher-interest debt while continuing to make at least the minimum payments on other obligations."
Depending on an individual's circumstances, consolidating or refinancing debt may also be worth evaluating. Fewer debt payments can free up cash flow and reduce financial stress during retirement.
"Regardless of the approach," Loveless said, "having a clear repayment plan and avoiding new debt whenever possible can help support long-term financial security."
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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