Feb 20, 2026
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America is about to experience a retirement tidal wave.
By 2030, about 20% of Americans will be 65 or older, according to the Census Bureau (1). And by 2034, for the first time in history, older adults will outnumber children in the U.S.
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Some Americans hope to retire even earlier than 65. But with the cost of living on the rise, they may question whether that’s possible — especially given that as costs increase every year, income tends to fall from age 64 onwards.
According to Kiplinger, the median income for those aged 65 to 69 was $68,860, with that figure tumbling to just $47,790 for those aged 75 and older (2).
Given the average annual expenditure for those age 65 or over is $61,432, according to the Federal Reserve Bank of St. Louis, many Americans are likely spending more than they earn (3).
Before you panic about having enough money in your nest egg, here are three key tips to help guide your retirement decision.
1. Looking at the 4% rule
The first principle worth considering when planning your retirement is the 4% rule. Many financial advisors recommend that retirees withdraw just 4% from their savings each year. This means you should try to find a number that will make a yearly 4% draw down last for 30 years.
The main question is whether this amount of income will be enough for you to maintain your lifestyle when combined with Social Security, pension, or any other payments.
For instance, if you have $500,000 saved, then a 4% withdrawal rate is just $20,000 per year. However, if you have $2 million, that would be a much more livable $80,000.
Consider working with a professional
Rather than basing your retirement on general guidance, it could be worth working with a qualified financial professional before making retirement plans.
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Research from Vanguard shows that working with the right financial advisor could add about 3% to net returns over time (4). That difference can become substantial. For example, if you started with a $50,000 retirement portfolio, professional guidance could mean more than $1.3 million in additional growth over 30 years, depending on market conditions and your investment strategy.
Finding the right advisor is simple with Advisor.com. Their platform connects you with licensed financial professionals in your area who can provide personalized guidance.
A professional advisor can also help you determine how many years you have left to invest before retirement and assess your comfort level with market fluctuations — two key factors in building the right asset mix for your portfolio.
Through Advisor.com, you can schedule a free, no-obligation consultation to discuss your retirement goals and long-term financial plan.
Diversify your investments for better protection
While many retirees know about and use IRAs for their savings, fewer leverage IRAs for investing in commodities.
With a gold IRA, you can get similar tax benefits to other IRA accounts, while investing in safe-haven assets that have less volatility than the stock market.
For example, while the market crashed in 2008, gold prices rose, cushioning the portfolios of investors who were savvy enough to diversify. Gold has also been on a historic bull run, and is up about 70% year-over-year as of early January (5).
Opening a gold IRA with the help of Thor Metals can seamlessly integrate with your investment strategy. Similar to an automated savings platform, Thor Metals makes it easy to schedule regular contributions and manage your gold investments efficiently.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
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2. Assessing a $1 million minimum
A Northwestern Mutual survey found that Americans believe they need $1.26 million to retire comfortably (6).
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But for many, that number isn’t realistic, and not always necessary. This is why it’s important you build a retirement goal that’s based on the advice of a qualified financial advisor who understands your goals and budget.
Just like the 4% rule, this figure is best viewed as a rough benchmark — not as a requirement for retirement.
Invest effortlessly with everyday purchases
Beyond high-yield savings accounts, investing in the stock market is another way to lock in higher returns — though it carries greater risk.
When you invest in broad-based index funds, you can minimize your risk by spreading your investment across hundreds of companies in one go. And there are now easy ways to invest daily, without even thinking about it.
With Acorns, you can turn purchases into investments.
When you spend money with your debit or credit card, Acorns automatically rounds up the total cost to the nearest dollar and invests the remainder in a diversified portfolio — so even when you have to spend, you're investing money at the same time.
For those looking to enhance their investing strategy, Acorns offers tiered memberships, including a gold tier that allows you to customize your portfolio by adding individual stocks, and a retirement account with a 3% IRA match for your first year.
If the round-ups aren’t enough, you can also set up monthly recurring deposits. Even better, if you sign up for Acorns today with a regular contribution, you can receive a $20 bonus investment to kickstart your investing journey.
3. Tackling the rule of 55
This last rule of thumb looks at the tax implications of retiring early. While you may have enough savings to retire early, there can be serious tax consequences that mean you’ll end up paying normal income tax on your retirement income.
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Usually, you’d face a 10% tax withdrawal penalty for making an early withdrawal from a tax-qualified retirement plan like a 401(k). But according to the 401(k) rule of 55, you can withdraw from your current employer’s plan penalty-free if you leave your job in or after the year you turn 55 — avoiding that 10% fee.
Deal with your debt head-on
It also might not be beneficial to retire early if you’re still paying off debts. To make sure you’re in the best possible position when that time comes, you’ll want to have settled as many of your outstanding debts as possible.
To expedite this process, you can use a free service called Credible to consolidate your debts into one monthly payment.
Rather than worry about multiple bills that each have their own minimum payments, deadlines and interest rates, you can take out a new loan with a lower interest rate and use it to pay off your other debts immediately.
You’ll then only have to make a single payment each month, and the lower rate will potentially save you a huge amount in interest — more money that you’ll be able to set aside for retirement.
And with Freedom Debt Relief, you can speak with a certified debt relief consultant for free, who can show you how much you can save by partnering with them.
If you're eligible, they can negotiate settlements with your creditors until all of your enrolled debt is resolved.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Census Bureau (1); Kiplinger (2); Federal Reserve Bank of St. Louis (3); Vanguard (4); APMEX (5); Northwestern Mutual (6)
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