Nearly half of Americans aren't saving enough for retirement, according to Dave Ramsey Solutions.
Yet most retirees still rely on Social Security as a major source of income, a benefit that typically replaces just 40% of pre-retirement income, according to the Social Security Administration (SSA).
That's the big mistake: treating Social Security like a retirement plan. It was never designed to be one. It was designed to be a safety net.
Whether it’s trimming your bills, tapping into your home equity or diversifying into gold, the fix looks different depending on whether you have decades ahead of you or you’re already living on a fixed income.
Wealthfront
Earn up to 4.55% APY on your cash
Ethos
Get an annuity with up to 10.5% a year
AmeriSave
Find low rates to access your home equity
Fundrise Flagship Fund
Buy real estate through Fundrise's $1 billion private fund Step 1: Free up cash and build your cushion
You can’t save money you don’t have. So before you worry about picking the perfect retirement account, find room in your budget so you can accelerate your savings.
Automate your savings
If you’re among the 42% not saving for retirement, don’t overthink it. Just get money moving into an account.
Apps like Acorns make that easier by rounding up your everyday purchases and investing the difference automatically. Buy groceries for $42.30, and 70 cents goes into a low-cost exchange-traded fund (ETF).
You get matched with one of five automated portfolios designed to align with your financial goals.
All you need to do is sign up and link your cards, which just takes a couple of minutes. And if you set up a recurring deposit, you can get a $20 bonus.
Acorns
Auto-invest your spare change Find ways to save on fixed costs
Once your savings are on autopilot, look at your monthly bills. Cutting fixed costs can free up more cash without changing your lifestyle.
Car insurance, for example, is an easy place to start. Many drivers don’t comparison shop, and insurers don’t always reward that loyalty.
A platform like Insurify lets you view quotes from top-rated providers in about three minutes.
It's free to use, and drivers who bundle home and auto coverage can save up to 20%. You can put that freed-up cash straight into a retirement account.
Just answer a few basic questions, and Insurify will show you the most affordable deals in your area.
Insurify
Get instant car insurance quotes and save today Earn more on your emergency fund
Ramsey recommends saving three to six months of expenses before investing for retirement. But many big banks pay as little as 0.01% interest, so that cash can lose ground to inflation.
A Wealthfront Cash Account currently offers a base APY of 3.55% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.30%³.
That's ten times the national deposit savings rate, according to the FDIC's March report⁴.
Wealthfront is also offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase⁵ with no expiration date or balance limit, meaning your APY could be as high as 4.55%.
Wealthfront
Earn up to 4.55% APY on your cash Put your home equity to work
If you own your home and you’re carrying high-interest debt, your home equity could help you free up cash each month.
Ramsey isn’t a fan of borrowing against your home, and a home equity line of credit (HELOC) shouldn’t replace your emergency fund. But because a HELOC is secured by your home, it usually has a lower rate than credit cards or personal loans. That can make it a cheaper way to consolidate costly balances, and you only pay interest on what you draw.
Companies like AmeriSave offer competitive HELOC options that let you tap your equity without touching your primary mortgage rate. It’s a good fit for homeowners who want a mostly online, low-friction experience from a well-known mortgage lender.
However, it’s important to evaluate the risks carefully, since rates are usually variable and your home serves as collateral.
AmeriSave
Find low rates to access your home equity Step 2: Build a plan that protects against inflation and market swings
Once you’ve freed up some cash, the goal shifts from saving more to saving smarter. That means having a clear strategy and spreading your risk so one bad year in the stock market doesn’t derail your retirement.
Make the most of your retirement accounts
If your employer offers a 401(k) match, take it. It’s essentially free money — and if you’re not taking it, you’re effectively taking a pay cut.
After that, you may have a few critical questions, depending on your situation.
Should you pick a Roth IRA for tax-free growth or a traditional IRA to lower your taxable income now? If you’re 50 or older, which accounts should get your catch-up contributions? With 30 years to go, you may be able to afford a few mistakes — but with 10 or 15, every move counts.
A financial advisor can look at all your accounts together and help you build a diversified mix that fits your timeline.
If you already have one, it’s still worth checking whether they’re the right fit. Many people picked their advisor years ago, kept them out of habit or inherited them from a parent. But your needs change as retirement gets closer. Is your advisor a fiduciary, someone who legally bound to act in your best interest? Are they helping with questions like these, or mainly just picking investments?
Platforms like Advisor.com can match you with a vetted advisor for free. Just indicate what you need help with — like tax optimization, retirement planning, or budgeting — answer a few quick questions through their online form and the platform will match you with a vetted financial advisor in a few minutes.
You can then set up a free, no-obligation-to-hire call to see how they can help you create an actionable plan and whether their approach and pricing model make sense for you.
Advisor
Connect with a vetted financial advisor near you Diversify beyond stocks and bonds
A good advisor will likely ask how much of your portfolio sits in stocks and bonds. If it’s nearly all of it, inflation or a market drop could hit your savings hard. That’s why many investors add a hedge like gold to the mix.
Gold isn’t tied to any single country’s economy, and it can’t be printed like paper money. Investors have historically turned to it during periods of economic stress or uncertainty.
A gold IRA lets you hold physical gold or other approved precious metals inside a tax-advantaged retirement account. The IRS has rules on which metals qualify and how they’re stored, so it pays to choose a reputable dealer and custodian.
Some companies also offer incentives, such as free IRA rollovers or free precious metals. Priority Gold, for instance, offers up to $10,000 in free silver on qualifying purchases.
Plus you can get a free information guide to help you decide whether gold fits your portfolio.
Priority Gold
Diversify your retirement fund with a precious metals IRA Step 3: Turn your savings into income you can count on
Whether retirement is a few years away or already here, the priority eventually shifts from growing wealth to making it last. That means building income streams that work alongside Social Security, not relying on it alone.
Lock in predictable income
An income annuity can help you convert your savings into predictable income.
In exchange for a lump sum, you can get guaranteed income for life, backed by the issuing insurer's claims-paying ability. This guarantee requires annuitizing your funds and is subject to the specific contract's terms, including any applicable surrender charges.
With Ethos, you can lock in predictable income you can count on every month and customize your payout schedule to fit your budget. If you need the money now, you can turn a lump sum into income that starts right away.
An income annuity can also help you diversify your retirement income strategy and provide another source of income alongside Social Security, pensions and other savings — with lifetime guaranteed income for those 59 and older, backed by the issuing insurer's claims-paying ability and subject to annuitization, rider elections, and contract terms including surrender charges.
If you're considering an income annuity, book a free consultation with a licensed Ethos insurance agent to explore your options. No purchase is required.
Ethos
Get an annuity with up to 10.5% a year Not available for residents of New York.⁶
Earn rental income without becoming a landlord
Rental income has long been a staple for retirees. But buying a property outright and dealing with tenants and repairs isn’t realistic for everyone.
Fortunately, you can now invest in real estate without the hassle of managing your own properties.
For instance, the Fundrise Flagship Fund² is a $1 billion private real estate fund that lets you invest in an expertly crafted strategy without needing hundreds of thousands of dollars. You don’t need to be an accredited investor, and you can get started with as little as $10.
With 4,700+ single-family homes and 2,500+ residential units owned by the Fundrise Flagship Fund, you get exposure to institutional-style scale and diversification.
215 Interchange
Las Vegas, NV
Pine Ridge
Fountain Inn, SC These are a few examples of properties powering the Fundrise Flagship Fund. For a full list of the Fundrise Flagship Fund's portfolio properties see the Flagship Fund website
After you place your first investment, the Fundrise Flagship Fund will work to find and add new assets to your portfolio over time and send you transparent updates along the way.
It only takes a few minutes to sign up now and become a real estate investor today.
Fundrise Flagship Fund
Buy real estate through Fundrise's $1 billion private fund More money moves to make
Mogul
Real estate investing Build your real estate portfolio with ease starting from $250.
Longbridge
Reverse mortgages Tap into your home equity to pay off debt or supplement your income.
Freedom Debt Relief
Debt relief program Talk to a certified expert for free, and get rid of your debt.
