Theres bad news and so-so news about the retirement insecurity of American female workers in the new Aegon Retirement Readiness Survey 2019. But the good news is that if employers, the U.S. government, financial advisers and those workers take a few key steps, todays cloudy retirement prospects for women could become sunnier.

After receiving thesurvey of 14,400 employees and 1,600 retirees in 15 countries from Aegon Center for Longevity and Retirement and nonprofits Transamerica Center for Retirement Studies (TCRS) and Instituto de Longevidaded Mongeral Aegon I parsed its massive data. Then, I learned more about the findings and advice for working women from the surveys author, Catherine Collinson, CEO and president of TCRS. (The reports also called The New Social Contract: Achieving retirement equality for women.) And I asked Cindy Hounsell, president of the nonprofitWomens Institute for a Secure Retirementfor her thoughts. Finally, I had a candid conversation with Holly Lawrence, a 59-year-old freelance writer in Washington, D.C.who has written eloquently for Next Avenue about her financial struggles.She had some piercing opinions about the surveys results.

Our overarching goal for the report is to inspire and empower women to take action, said Collinson. My sense is that women need a vote of confidence. And small steps can lead to a big impact over time. For many women, taking the first step is the hardest.

So, to the news:

First, the bad news. Only 25% of the U.S. women surveyed believe theyre on course to achieve their retirement income needs and just 26% are confident theyll be able to retire with a comfortable lifestyle. By contrast, 40% of men say theyre on course to achieve their retirement income needs and 48% are confident about their retirement prospects.

It is alarming, Collinson said, speaking about the responses of women and the disparities with men.

Two reasons for American womens retirement insecurity, she noted, are thegender pay gap, making it harder to find spare cash to save for retirement (median income of women surveyed: $40,375; for men, $54,599) andcaregiving expensesthat cut into retirement savings.

Related: Why is it still so hard for women to save for retirement?

Almost every woman my age is having to think about how to take care of a parent or a millennial child if he or she cant get a job, said Lawrence.

She noted that the retirement insecurities the women expressed in the survey resonate with her.

Im definitely on the worried side, she told me. Im underemployed without savings and living below the poverty level. Ive felt lucky just to make my rent and utilities, with a smidgen in a low-earning savings account.

And now for the surveys so-so news: The researchers produce what they call the Aegon Retirement Readiness Index score and it has risen for U.S. women from 5.8 in 2014 to 6.1 in 2019. Collinson calls the 0.3 rise here a small increase. Her explanation for it: When the economy is doing better, people are more likely to be engaging in retirement planning and more optimistic about the long-term. (The index score rose for women globally, too, from 5.5 in 2014 to 5.8.)

But even a 6.1, Collinson noted, is just a medium retirement readiness score. Above 8 is high. The score for American men is now 7.1, up from 6.7 in 2014.

What could boost womens Retirement Readiness Score? A few things, according to Collinson.

More employers couldoffer retirement savings plans to their part-time workers.The survey found that women in America are nearly twice as likely to work part-time. And part-timers typically arent allowed to contribute to 401(k) or similar retirement plans where they work. Access to workplace savings plans has proven to be an effective way encouraging people to save, said Collinson.

Hounsell noted that the new federal SECURE Act will encourage employers to let part-timers put money into workplace retirement plans. That will make a difference, she said.

Financial advisers and the financial services industry could do more to assist women. For many financial advisers, training is deeply rooted in working with men, said Collinson. Theyrenot necessarily understanding or addressing the needs of womenand the life course of women in a way that is empowering and can lead to better decision-making.

Women can try to become what Collinson calls habitual savers.Just 50% of women in the survey said theyre habitual savers always saving for retirement. The percentage was lower for female boomers (45%) and even lower for Gen Xers (39%). About a third of boomer and Gen X women arent currently saving for retirement at all.

Habitual saving is one of the most important things we can do to self-fund a greater portion of our retirement, Collinson said. She acknowledged, however, that there are times when we cant save as much as wed like or at all due to pressing financial needs.

Lawrence told me she accumulated some savings years ago, when working in New York City. But that money dwindled due to high rents, her inability to find full-time work and medical emergency expenses.

Also see: Women now have more jobs than men but thats not necessarily sign of progress

Lawrence hopes to start saving again, though she detests when financial firms chide people for not putting away enough money for retirement. I glaze over when they say: You should have been here [with a large amount of savings] by now. She added that the study says its imperative women take greater control over their savings and retirement planning, and I certainly agree. But I think that type of sentence packs in some assumptions. If companies make people feel guilt and like theyve already lost before they get started saving for retirement, theyll never start.

Hounsell worries that possible cuts in Social Security and Medicare benefits toshore up those programswill only make retirement prospects more frightening for women and men. It is clearly a worry, she said, adding that thefoundation for womens retirement is still Social Security.

Shed like to see Washington make several changes to Social Security: higher benefits for widows; an anti-poverty minimum benefit that would not impact the income limits to qualify for Medicaid; bigger benefits starting at age 85 or 90, reflecting Americans longer lives and a caregiver earnings credit to offer retirement protection to women (and men) who have spent significant time as family caregivers.

One last finding in the Aegon survey that I think is worth noting. Only 23% of the U.S. women surveyed correctly answered three basic financial literacy questions dealing with interest rates, inflation and risk diversification; 36% of men did (thats better, but frankly not very impressive).

We have a tremendous opportunity to increase financial literacy in the U.S. and around the world, said Collinson. How can someone make informed decisions about retirement saving and investing over the long run without an understanding of the most basic concepts?

Her advice: Take advantage of retirement-saving educational tools and resources offered by your employer, if they exist. Read personal finance websites and publications. Enroll in a personal finance course at a local college.

Lawrence agreed and told me she has made a point of teaching herself about personal finances, watching videos and reading online media. She wants to see other women follow suit. Even if we dont have a 401(k) or savings, we need to start educating ourselves about these financial instruments, Lawrence said. Education is power.

Read more from the original source:
The good news and bad news about women and retirement and what can be done about it - MarketWatch

Many people dream of retiring early, or at least on time. But if you kick off that milestone unprepared, you'll regret pulling the trigger. And while delaying retirement may not be something you want to do, it's something you'll have to do if these three scenarios apply to you.

You need independent savings to live comfortably in retirement for one big reason: Social Security will only replace about 40% of the income you're used to, and that assumes you're an average earner. If you're an above-average earner, it will replace even less. Meanwhile, most seniors need 70% to 80% of their former paycheck to enjoy life and keep up with their bills, and retirement savings are generally what's needed to fill in that gap.

IMAGE SOURCE: GETTY IMAGES.

As a general rule of thumb, it's wise to enter retirement with about 10 times your ending salary socked away in an IRA or 401(k). If your current savings balance looks nothing like that, then you'll need to look at postponing retirement until you're able to get closer.

Say you're 65 years old and are itching to retire, but you currently earn $75,000 a year and only have $500,000 socked away. Though half a million dollars is certainly a respectable sum, it means you're still worlds away from the $750,000 should you be targeting. If that's the case, postponing retirement until age 70 will give you five more years to build wealth. And if you max out a 401(k) at today's annual limit for older workers -- $26,000 -- for five years, you'll wind up with a bit more than $750,000 if your investments in that account generate a relatively conservative 5% average annual return during that time.

Once you retire and move over to a fixed income, you may find that you're forced to cut back on certain expenses just to make ends meet. It therefore stands to reason that entering retirement with debt payments that monopolize your limited income is not a good thing to do at all.

If you're carrying debt, it pays to eliminate it before you retire, and you can do so by cutting back on expenses in your current budget or getting a second job to boost your earnings. This especially holds true if you're carrying credit card debt, which is generally considered the least healthy kind to have.

That said, if the only type of debt you have is mortgage debt, you don't necessarily need to postpone retirement until your home is paid off. Mortgage debt is regarded as one of the healthiest types of debt out there, and the interest you pay on your home loan can serve as a lucrative tax break.

Retirees are 40% more likely than workers to suffer from depression. The reason? They often find themselves hopelessly bored once they stop having a job to go to.

If you have no idea how you'll spend your days in retirement, then you're better off continuing to work until you figure it out. And if you know what you want to do with your time but can't afford it (say, you're hoping to travel extensively), work a few more years and boost your savings to make your goals more attainable. If you decide to retire without having a good sense of how you'll fill your days, you may find that your mental and physical health quickly start to deteriorate.

Postponing retirement may seem like a terrible thing to have to do, but remember, Americans are living longer these days, and if you push yourself to work until your late 60s or early 70s, there's a good chance you'll still enjoy a solid 20 years of retirement, if not more. And that way, you'll retire at a time when you're financially and emotionally ready.

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If These 3 Things Apply to You, You Must Postpone Retirement - The Motley Fool

ROCKFORD (WREX) The Coronavirus threw stocks into turmoil the last few days, leading the Fed to lower interest rates.

Financial experts at Northwest Bank says that's good news for homeowners.

"We'd encourage all consumers to take a look at their current mortgage rates. For many, many folks, the time would be very favorable to come in, talk to your bank, talk to your mortgage people that you know and take a look at refinancing," said Tom Walsh, president of Northwest Bank.

On the flip side, when it comes to your retirement accounts, Walsh said you will likely see a dip in returns. That doesn't, however, mean you should panic.

"This move by the Fed I think is hopeful to stabilize the stock market as well and hopefully provide some calming affect, not only to the markets themselves, but to all of us who invest in the markets, and give us a little more confidence about our retirement savings," he said.

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It's a harsh reality of modern retirement planning: Women live on average five years longer than men, yet they accumulate less for retirement. According to the 2019 Bank of America Merrill Lynch Workplace Benefits Report, women come to retirement with $70,000 less than men.

Are women worse savers? Hardly. According to research from Vanguard, women participate in retirement plans in greater numbers than men. The difference in savings boils down to wages.

First, there's the gender pay gap. Despite having more education than men, women still only earn 80% of what their male counterparts do.

Women also get penalized for motherhood, suffering around a 4% decline in wages for each child they have, according to think tank Third Way. Men, on the other hand, experience a "daddy bonus," seeing their wages rise about 6% with each child.

And because women are more likely to be caregivers, both for their children and elderly relatives, according to the Merrill Lynch survey, they are also more likely to take breaks from their careers, work part-time or participate in the gig economy. What they gain in flexibility, they also lose in access to employer-sponsored retirement plans.

In short, women must finance more years of living expenses, health care and long-term care, but they've got less money to do it with.

"Awareness of the issues is the single most important first step to addressing the issues," said Catherine Collinson, president and CEO of the Transamerica Institute and the Transamerica Center for Retirement Studies. "There are many things women can do [for their retirements] that are within reach."

Experts recommend these four steps.

At the beginning of your career, saving for retirement on top of food, rent, insurance and possibly student loan debt seems beyond daunting. But it's one of the most effective things you can do for the future. The earlier you start, the less you need to save, because compounding does a lot of the work for you.

Financial planners like Maria Bruno, head of U.S. wealth planning research with Vanguard, recommend putting aside 15% of your pretax salary for retirement. Can't swing 15%? Start small and build up. A little retirement savings is always better than nothing.

"Retirement savings isn't all or nothing," insisted Bruno. "Maybe at first you take advantage of your company's match so you only save 3%; then you increase your savings by 1% a year. By the time you're 30, you'll be at that 15% level."

More from Invest in You: The secret to financial success: Paying off debt These 3 steps will help you track where your money is going in 2020 How much you need to save every month to earn $60K a year in interest alone for retirement

Also, in the early years, be particularly mindful of your salary negotiations. Your early salary is the foundation for future earnings, so it behooves you to learn the art of negotiation.

"Know your worth and don't settle for the first offer," said Judith Ward, senior financial planner with T. Rowe Price Associates. "Do some research on your industry and position and be knowledgeable going into a salary negotiation."

No one likes to budget, but it's the clearest way to get a handle on your money. Being aware of where your money goes each month can help you identify which areas to cut back on and how much you can redirect toward retirement.

"You need to get smart about what your spending is," said Stacy Francis, a certified financial planner and president and CEO of Francis Financial. "What you earn is important, but what you spend is even more important,"

There are a number of apps like mint.com and YNAB (You Need A Budget) to simplify budgeting. A simple spreadsheet works, too. When you've figured out where to trim and how much to allocate to retirement, automate your savings. Many companies do this for employees through auto-enrollment features, but you can automate additional savings on top of that yourself.

"I say take [retirement savings] off the top and that forces you to live within your means with the remaining amount," said Bruno.

Who says 65 is the magic retirement age?

"The whole retirement thing is really outdated," said Kathleen Burns Kingsbury, a wealth psychology expert and founder of KBK Wealth Connection. "There's an upside to living longer and that's that you can have a really vibrant life well beyond 65."

Aside from staying engaged, working longer also lets you build up a bigger nest egg and maximize your Social Security.

"To think that you can work for 30 or 40 years and have enough money to fund retirement for 30 or 40 years doesn't add up mathematically," said Collinson of Transamerica. "We all need to think about extending our work lives."

More Americans are getting on board with delayed retirement. Pew Research reports that 29% of baby boomers age 65 to 72 are either in the workforce or looking for work, a much higher percentage than older generations were when they were that age.

"It doesn't mean you have to continue to work the way you did before," insisted Collinson. "You might shift from full-time to part-time, maybe seasonally. The idea is, you continue to work but with more freedom and flexibility."

The gig economy allows people to take on part-time or project-based work to bring in additional income.

While Social Security makes up 40% of the average person's retirement income, for women it plays a bigger role. Because it's such a valuable source of retirement income, it's important to maximize this benefit.

You are eligible to receive Social Security at age 62, but you'll get dinged for each month you collect before your normal retirement age, which for anyone born after 1960 is 67 years old. By the same token, you get a bonus of about 8% a year for waiting until age 70.

"For most women it pays to wait til age 70," said Francis. "If you start collecting at age 70, you could be collecting for the next 20 or 25 years at a higher rate."

To be sure, retirement is a heavy lift for most people. For women it's compounded by lower wages, caregiving responsibilities, breaks from the workforce and greater longevity. While you may not be able to solve all these societal issues on your own, there's a lot you can do to shore up your own retirement security.

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With less savings and longer lifespan, women must take 4 key steps to shore up retirement - CNBC

In your 20s, retirement seemed so far away.

By the time you hit 50, it's a reality that is a lot closer and one you may not feel prepared for. That may be especially true as fears over the coronavirus rattle the stock market and your investment portfolio.

Or, you may have nothing saved at all. In fact, a 2019 survey by the Insured Retirement Institute found that 45% of baby boomers have zero savings set aside for their golden years. The organization polled 804 Americans aged 56-72 in February of 2019.

Personal finance expert Suze Orman believes many Americans simply can't afford to retire.

"We have a crisis," the New York Times best-selling author said.

Yet, by making some savvy moves, you can get on track.

More from Invest in You: How to manage your 401(k) as the coronavirus upends the markets History of sudden market shocks shows the market is due for a big comeback Women must take 4 key steps to shore up retirement

The first thing you should do is stop dreaming of retiring by 55 or 60, said Orman, whose latest book is titled "The Ultimate Retirement Guide for 50+."

"You need to start thinking, '70 is when I want to retire,'" she added. "If you can just know that you're going to be working from 50 to 70, you have 20 more years for your money to grow."

Here are five strategies people 50 and over can employ to prepare for retirement, according to Orman.

"This is the time that you really need to look at your total financial situation, in terms of how much money are you spending, how much are you saving?" said Orman, host of the weekly podcast, Women & Money.

You should do everything you can to cut back on unnecessary expenses.

If you own a home and plan to stay in it, make sure you have a plan in place to pay off the mortgage by the time you retire.

You may love your home, but if it is larger than you need and you can make a profit selling it, do so. Then, move into something smaller and less expensive.

"I don't want you to wait till you're 60 or 70 to sell this home," she said. "I want you to downsize right now, so that you can start saving more money right now."

Now is the time to super-charge your emergency fund.

While many experts suggest setting aside three to six months' worth of living expenses, once you are over 50, Orman wants you to save two to three years worth.

That's because once it's time to start drawing from your retirement account, you want to avoid taking big losses if the stock market is down like happened last week when the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all fell more than 10%. It was their biggest weekly decline since October 2008.

"That's not when you want to be withdrawing from it," she said.

"If you have cash, you can live on that cash for two or three years until the market recovers."

Of course, you will still have to make your required minimum distributions the amount you must take out every year - from your traditional IRA or 401(k) if you are 72 or older.

Any new contributions you make into a retirement account should be in a Roth IRA, if you can, Orman said.

"Later on in life, you want to be able to take that money out tax free," she explained.

Roth IRA contributions are made after tax, so you aren't taxed when you take the money out during your retirement. On the other hand, when you put money into a traditional IRA, it isn't taxed but it is when you take it out.

However, your income will determine whether you can contribute to a Roth IRA. As a single person, you can do so if your modified adjusted gross income is under $139,000. If you are married and filing jointly, your income just be under $206,000.

Continued here:
Suze Orman: There is a retirement 'crisis.' Here are strategies for those 50 and over - CNBC

Failing to withdraw a required minimum distribution (RMD) from your own or an inherited IRA by the deadline results in a big tax code penalty: 50%. That's right. If you were supposed to take out a minimum of $4,000 and (oops!) did not do so, you have the privilege of writing the IRS a check for $2,000. It's important to remember that the rules related to RMDs changed on January 1, 2020

In case you're like most investors, you're probably trying to build a financial portfolio that is solid enough to guarantee a comfortable retirement. Among retirement financial planners, this is known as the "accumulation phase." In this stage, your objective is to carefully invest by selecting stocks with long-term potential for your retirement nest egg. For example, you might choose Evergy Inc (EVRG), which is a current top ranked dividend stock.

But that's just half of retirement planning. The second part, the "distribution phase," sometimes gets overlooked even though it can be more fun to think about. That's because the distribution phase is where you determine how to spend your hard-earned assets.

Making plans for the distribution stage involves deciding where you'll live in retirement, whether you'll travel, your proposed leisure activities, and more decisions that will affect your spending during your golden years.

In addition to these considerations, it is essential to take into account the RMD that applies to most retirement accounts. Basically, this is an IRS requirement that you withdraw a certain amount from your qualified retirement accounts once you reach age 72.

Why does the IRS require you to start taking your money out? It's simple - they want to make sure they get their tax. If this rule didn't exist, people could live off other income and never pay tax on their retirement investment gains. Then, that money could be left to family or friends as an inheritance without the IRS collecting any taxes from you.

What You Need to Know About RMDs

Which types of accounts have RMDs? Qualified retirement accounts such as IRAs, 401(k)s, 457 plans, and other tax-deferred retirement savings plans like a TSP, 403(b), TSA, SEP, or SIMPLE IRA plan require withdrawals in retirement.

When does it become necessary to begin taking distributions? Your first distribution must be taken by April 1 of the year following the calendar year that you turn 72 (for most accounts). Also, if you retire after that age, you must take your first RMD from your 401(k), profit-sharing, 403(b), or other defined contribution plan by April 1 of the year after the calendar year in which you retire.

For each year after your required starting date, you must take your RMD by December 31. Note that you don't need to take an RMD on a Roth IRA since you covered taxes before contributing. Other varieties of Roth accounts require RMDs. But, there are approaches to avoid them - for instance, you can roll your Roth 401(k) into your Roth IRA.

What happens if don't take my RMD? The penalty for not taking a required minimum distribution, or if the distribution is not large enough, is a 50% tax on the amount not withdrawn in time.

How much cash do I need to withdraw? To figure out a particular RMD, you should divide your earlier year's December 31st retirement account balance by a "distribution period" factor dependent on your age.

Here's an example to give you an idea of the amount: Ann is 71 and will take her first RMD in the year following the year she turns 72. Her IRA balance at the end of the prior year was $100,000. Her "distribution period" factor is 27.4. Dividing $100,000 by 27.4 equals $3,649.63. This is how much Ann is required to withdraw for her first RMD.

Learning about the "distribution phase" is just one aspect of preparing for your nest egg years.

To learn more about the tax implications of retirement spending - and much more about retirement planning - download our free guide: Retirement Made Easy.

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A large number of American workers closing in on retirement are showing anxiety not just over how much theyve saved but also over how to manage their different income sources during their post-career lives.

A new study by Charles Schwab found that most pre-retireesdefined as those within five years of retirementhave at least one fear about their income in retirement. The findings were gleaned from a survey last summer of 1,000 Americans aged 55 and older with $100,000 or more in investable assets, half of whom fell into the pre-retiree cohort.

Seventy-two percent of the studys 500 pre-retiree respondents said they are worried about running out of money after they retire. Thats the most popular worry, but its not the only: 64% say they are overwhelmed by not being able to maintain their current lifestyle or quality of life after they retire, while 60% worry about not getting a regular paycheck in retirement.

We talk a lot about investors saving for retirement, but that transition to retirement and that time right before retirement is often the most stressful, says Rob Williams, vice president of financial planning, retirement income, and wealth management at Schwabs research arm.

Thats because there are so many moving parts and there are so many pieces, he adds.

While knowledge wont solve every retirement problem, understanding the rules and how theyll affect you can save you some stressand moneyas you prepare to retire. These are the two most common pre-retiree income blindspots, according to the Schwab survey.

Taxes

Of the pre-retirees Schwab surveyed, 70% said they knew nothing or not a lot about the tax implications of retirement withdrawals. Thats a problem since traditional individual retirement accounts are tax-deferred, not tax-free, Williams adds.

Contributions to a traditional IRA or 401(k) are pre-tax, meaning investors can use the accounts to shrink their annual taxable income and benefit from returns generated by pre-tax income.

But its important to remember that the investments you make in your traditional IRA or 401(k) arent tax-free forever. Investors must pay income tax once the money is withdrawn. (This doesnt apply to Roth IRAs, which are post-tax investment accounts.)

Because traditional IRA distributions help determine ones tax bracket, many retirees plan their distributions to minimize their tax bill using tools like charitable contributions or Roth conversions. To start estimating how IRA withdrawals could affect your tax bill, you should have a plan for when you will retire and how much you can sustainably withdraw. A common rule of thumb suggests retirees can sustainably withdraw 4% to 5% of their retirement accounts each year, though investors should research the best approach for their particular circumstances.

Required Minimum Distributions

Seventy percent of those Schwab surveyed said they knew little or nothing about annual required minimum distributions, or RMDs, from tax-deferred accounts. That could lead to an unwanted surprise after their 72nd birthdays, when retirees are obligated to start taking RMDs. (That age is up from 70.5 thanks to a recent change in the Secure Act.)

While the amount any retiree must withdraw from their taxable IRA varies based on IRS calculations, the penalty for failure to withdraw it is the same. The 50% fee on the unwithdrawn RMD amount is one of the largest fees I can think of, other than, I suppose, breaking the law, Williams says. You can estimate your RMD on Schwabs website.While retirees must start withdrawing from taxable accounts at age 72, that timing isnt perfect for everyone, Williams says. There are plenty of strategies for managing RMD income you dont needsuch as Roth IRA conversions or qualified charitable donationsbut Williams recommends speaking to an advisor for a personally tailored RMD plan.

Write toShaina Mishkin atshaina.mishkin@dowjones.com

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Seniors Are Stressed About Income in Retirement. What To Do. - Barron's

Contributing as much money as possible to retirement savings is essential -- especially with so many people having too little saved for the future.

But while you need to invest for your later years, you may not want to devoteall your spare cash to this goal if you haven't checked a few other items off your to-do list first.In particular, there's two tasks you may want to undertake before you max out your retirement accounts.

Image source: Getty Images.

If you have high-interest debt, chances are good you're paying far more in interest to your creditors than you could reasonably expect to earn by investing. Your interest costs will also eat up the cash available to you, making it harder for you to invest what you need to retire comfortably.

It's best to take care of this debt ASAP so you don't have this obligation hanging over your head and so you don't continue wasting money on interest. Rather than maxing out your retirement accounts, contribute only enough to your 401(k) to get the employer match and then devote every extra dollar to getting rid of the debt you owe.

You should do this only if you're serious about getting out of debt and staying out of debt. Once you're done with paying off your creditors, reallocate some of the money you were sending them to shoring up your retirement account balances.

If you're living paycheck to paycheck without any savings, you could find yourself making difficult choices when unexpected expenses come up. You could be forced to borrow and find yourself with high-interest consumer debt you have to pay back. Or you could end up pulling money out of your retirement accounts to cover the emergency costs, which could lead to penalties and taxes.

You don't want to lock up all of your money in a retirement account that you can't easily make withdrawals from if you don't have an emergency account to rely on when something goes wrong. So, again, contribute enough to get your employer match and put any additional spare cash into an emergency fund.

Once you have enough saved to cover several months of living expenses -- around three to six months is advised by most experts -- you can get more serious about trying to max out your retirement savings accounts with your extra funds.

If you're like most people, you have only a limited amount of spare cash -- so making smart choices about what to do with it is essential.

You definitely want to contribute enough to your 401(k) to get the full employee match. But beyond that, if you don't have an emergency fund or if you're in a lot of debt, devoting some of your money to these goals just makes sense rather than maxing out your retirement plans.

Once you have paid down your debt and have cash saved for emergencies, you can redirect the extra money toward supercharging your savings -- and you'll be in a much better financial position as you save for the future.

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2 Things to Do Before Maxing Out Your Retirement Savings - The Motley Fool

Having $1 million in the bank has often been considered the gold standard of retirement savings.

In some places, that kind of stash can stretch over 40 years. But in higher-priced cities, it may only last a decade or less.

Considering thatAmericans, as a whole, aren'tsaving nearly enough for retirement, GoBankingRates measured how far $1 million in savings could go in cities across the countryby comparing average expenses for people age 65 and older, including groceries, housing, utilities, transportation and health care.

The personal finance sitethen ranked the 50 biggest cities based on data from the Labor Department's 2018 Consumer Expenditure Survey and cost of living indices from Sperling's Best Places.

Overall, dollars stretched the farthest in cities like Memphis, Tennessee; El Paso, Texas; and Wichita, Kansas, where annual expenditures were around $40,000 a year.

However, retirees couldblow through $1 millionconsiderably faster in hot spots such as New York, San Jose and San Francisco, where it costs upward of $100,000 a year just to get by.

More from Personal Finance: Retiring early? These 10 cities could be your best bet The 10 safest countries for retirement The best places in the U.S. to buy a vacation home

On average, Americans believe they need as much as$1.7 million to retire, according to a separate survey fromCharles Schwab, which looked at 1,000 401(k) plan participants nationwide.

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How long $1 million in retirement lasts in cities across the U.S. - CNBC

For lots of people, saving up for retirement is intimidating. How can you be expected to set aside money that you wont see for years, especially if youve got debts to pay off now?

According to the Federal Reserve, nearly a quarter of Americans dont have any retirement savings at all.

But even if you havent put aside a cent, its still possible to increase your savings and ensure that your retirement will be just as enjoyable as all those commercials for senior vitamins make it out to be.

Here are five steps you can take to maximize your retirement savings.

If your employer matches contributions into a retirement savings plans like a 401(k), find out your company's maximum match usually 3% to 6% of your annual salary and contribute the same amount.

If youre not taking full advantage of of your employer's 401(k) matching policy, youre basically throwing away free money.

Though the IRS puts limits on the maximum contribution you can make each year to your 401(k), employer-match contributions dont count towards your limit.

Ideally, you should put as much into your 401(k) as the taxman allows, but even if you can contribute only 1% more than your company's matching contribution, it will make a huge difference.

For example, if you make $50,000 a year and your employer matches your contribution up to 4%, after 30 years with a 5% rate of return youll have saved $144,843. And if you contribute just 1% more each week, youll save an extra $34,818. Not too shabby!

If you arent lucky enough to have a retirement plan, or if your employer doesnt offer a 401(k) match, dont worry there are other ways you can save.

Facet Wealth can put you in touch with a certified financial planner who will help you build a personalized retirement plan to fit your lifestyle.

Got credit card debt? No judgment here it happens to the best of us. But mounting debt can be a huge stumbling block when youre trying to save up for your retirement.

The best way to prevent your credit card bill from standing in the way of your retirement savings is to work with a company like Fiona.

Fiona will show you the best lending options to refinance or consolidate your debt and can save you thousands of dollars in interest charges.

Fiona will match you with a loan of up to $100,000 based on your credit score, with a fixed interest rate as low as 3.84%. Your loans repayment plan can range from 24 to 84 months.

Lets say you ran up $12,500 in debt on a store credit card with a punishing 22.99% interest rate. If you were to trade in that debt for an 84-month personal loan at 5% interest, youd save $10,400 in interest.

Just think about how many early-bird breakfasts that will pay for when you retire.

Comparing rates on Fiona wont hurt your credit score, so even if youre just curious about your options its worth taking a look.

One of the hardest parts about saving for your retirement can be knowing what you should prioritize when it comes to paying your bills.

Everyones strategy for improving their credit score is different. For example, some people just do nothing and hope their scores will just work themselves out. This is not a good strategy. At all.

If youre one of those people, or if youre not exactly sure whether youre on the right track, Credit Sesame can help.

Credit Sesame is a free service that will monitor your credit and give you personalized recommendations on which bills to pay off first and what other steps you can take to improve your credit score.

Theyll also make sure your credit isnt being affected by mistakes in your credit report. Youd be surprised how often those can crop up according to the Federal Trade Commission, one in five credit reports contains errors.

By finding and correcting credit errors, Credit Sesame may be able to boost your credit score by hundreds of points and make saving for your retirement a lot more manageable.

When youre saving for retirement, every penny counts. So why are you overpaying for car insurance?

You should be shopping for car insurance rates at least twice a year. Thats right, every six months.

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It may sound like an endeavor, but the savings will be worth it.

And with the help of a company like Assurance, comparing quotes from multiple insurance companies is a breeze. In just minutes youll know whether youre getting the lowest rate possible, and which insurer you should switch to if youre not.

Making sure that you have enough stashed away for when you retire is one thing, but you also should think about what your family would do if you were taken from them by a serious accident or illness. It probably wont happen anytime soon, but its smart to be prepared.

Taking out a life insurance policy is a great way to ensure that your family will be financially secure after youre gone.

If youre worried that setting up a life insurance policy will be time-consuming, pricey, and maybe even a bit awkward, dont be. Quotacy lets you compare insurance rates without sharing your personal data.

In just minutes, Quotacy will give you three rates that are customized to your needs. Depending on your age and your home state, you can get an insurance policy offering $1 million in coverage for less than $7 a week. If that doesnt give you peace of mind, nothing will.

See more here:
5 Moves That Can Seriously Boost Your Retirement Savings - Yahoo Finance