How to increase your retirement income, according to an expert

Even though inflation in the United States is steadily falling Since peaking in June 2022, Americans say rising costs pose the biggest threat to their ability to live comfortably in retirement, according to an October Allianz Life survey.

Just over 40% of respondents identify “increasing daily costs” as the No. 1 risk to their retirement income, according to Allianz Life, which surveyed 1,000 people over 25 earning more than 25,000. $.

Here’s a look at the top three factors Americans believe pose the biggest threats to their retirement savings. (Respondents could choose several.)

1. Daily costs are increasing (42%)
2. Surviving money (35%)
3. Health care costs (32%)

One reason Americans may worry about higher costs swallowing up their retirement savings or outliving their savings is that many don’t have much hidden away to begin with.

About 36% of retirees have less than $50,000 saved, according to a CNBC Your Money retirement survey conducted in August with SurveyMonkey. Additionally, just over half of those surveyed believe they have not saved enough for retirement and about a third believe they have saved just enough.

If you’re concerned that you won’t have enough saved to support you during your post-working years, there are steps you can take now to prepare. Here are two options to explore.

When it comes to retirement savings accounts, about 46% of workers contribute less than their employer’s match or don’t participate in their company plan at all, according to a June Vanguard report.

But if your employer offers matching contributions to a retirement savings account like a 401(k) or 403(b), you risk leaving money on the table if you don’t contribute enough to receive the match. the entire consideration.

It may seem daunting to set aside more of your salary for retirement, but you don’t have to start contributing more all at once. You can start by setting your retirement contributions to automatically increase by 1% each year until you reach your savings rate target. Fidelity recommends a savings rate of 15%, including your employer match.

However, make sure you don’t exceed the pension contribution limit. For 2025, individuals can put up to $23,500 into their 401(k)s and other employer-sponsored retirement accounts, including 403(b)s and most government 457 plans.

The earliest you can start claiming your monthly Social Security benefits is age 62. However, waiting a few years to start receiving these benefits will grant you larger payments.

In fact, for every year you wait to receive Social Security between your full retirement age and age 70, your benefit increases by 8%.

“Just waiting a few years gives you a huge boost to your guaranteed inflation-adjusted income in retirement,” Anne Lester, a retirement expert and author of “Your Best Financial Life,” told CNBC : Save Smart Now for the Future You Want. It’s March. “It’s definitely worth the delay.”

It may also be helpful to speak to a financial advisor who can help you develop a personalized plan to achieve your goals and live comfortably in retirement.

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