We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.
Maryann O’Connor, a single mom who adopted and raised three kids, envisioned a comfortable retirement. However, her reality tells a different story.
Don’t miss
- I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
- Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
- Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10
“I’m working my butt off,” the 66-year-old told CBS News.
O’Connor has no savings, 401(k) or even an emergency fund. She works two jobs, sometimes up to 11 hours a day.
“It’s been a matter of life and death,” she said, reflecting on her financial struggles. “I [had hoped] to be retired, playing the piano again, just enjoying my life.”
Instead, O’Connor sold her home and purchased a smaller one, which she shares with two other women.
It’s increasingly common for Americans to continue working into their golden years. According to the Pew Research Center, approximately one-in-five Americans aged 65 and over were employed in 2023, a figure that has nearly doubled compared to 35 years ago.
Saving for retirement isn’t just a good idea — it’s essential. And it’s never too late to start. Here’s how to begin building your nest egg.
Track your expenses
Data from the U.S. Census Bureau reveals a troubling trend: Nearly half of U.S. women aged 55 to 66 have no personal retirement savings. For men in the same age group the figure is only slightly lower at 47%.
Smart financial planning — particularly for retirement — begins with knowing where your money goes. Track your spending for a full month and sort each expense into two categories: essential needs or discretionary purchases.
However, budgeting can be challenging, especially when trying to track multiple accounts, food shopping and daily expenses simultaneously. With YNAB, you can track spending and saving all in one place. Link your accounts so you can see a big-picture look of your expenses and net worth growth. You can prioritize saving for short or long term goals — like a vacation or a down payment for a house — with the app’s goal tracking feature.
If you want to pay debts faster, you can create personalized paydown plans to calculate how much interest you’d save if you topped up your monthly payments with a little extra.
The easy-to-use platform allows you to simplify spending decisions and clarify your financial priorities. Plus, you don’t need to add your credit card information to start your free trial today. Working additional hours and years can greatly increase your retirement savings — but it’s important to approach it strategically.
One easy way to make the most of these extra working hours is by automatically investing your spare change with Acorns.
The app automatically rounds up your everyday purchases to the nearest dollar and invests the difference into a diversified portfolio. This means that while you’re still earning an income, every transaction — from your morning coffee to grocery shopping — contributes to building your retirement nest egg.
For example, when you spend $2.45 on coffee, Acorns will automatically invest the 55-cent difference. These small amounts can add up over time.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Build a safety net
While the allure of growing your nest egg through investments is strong, you might want to consider establishing a solid financial cushion first.
CBS highlighted that O’Connor lacked the savings needed for an emergency — a situation many Americans face. Only 42% of American adults could handle an unexpected $1,000 expense with their savings, according to a U.S. News survey.
An emergency fund is vital for financial security, helping you avoid debt during challenges like job loss, medical bills or car repairs. The ideal amount depends on your personal situation, but financial expert Dave Ramsey recommends saving enough to cover three to six months of living expenses.
One way to grow your emergency fund is by using a high-yield savings account, which can offer returns up to 10 times higher than those of traditional banks. Unfortunately, over 82% of Americans are not taking advantage of this opportunity, according to CNBC.
A healthy savings account balance gives you the means to fund your lifestyle, handle unexpected expenses and save for retirement. If you’re looking for the best bank for your savings, compare and select from the Moneywise list of the Best High Yield Savings Accounts of 2025.
Wealthfront is another strong option to consider when it comes to growing your savings. While most traditional banks offer interest rates that barely register — sometimes as low as 0.01% APY — the Wealthfront Cash account offers a much higher 4.00% APY on deposits. That’s just about ten times higher than the national average of just 0.42% APY offered by traditional savings accounts.
The account has no annual or maintenance fees and is insured by the Federal Deposit Insurance Corporation for balances up to $8 million. Plus, you can get started with as little as $1.
Fund your account with $500 or more to get a $30 bonus with Wealthfront Cash.
Invest for retirement
Investing plays a key role in retirement planning, helping your savings grow and compound over time.
However, there are important factors to consider. The first is your investment horizon. Longer timelines allow for higher risk, while closer retirement dates call for safer investments.
Understanding your risk tolerance is also crucial to ensuring your investments align with your comfort level and long-term goals.
Investment options such as stocks, bonds, ETFs and mutual funds come with varying levels of risk and growth potential. Stocks offer high returns but are subject to volatility. Bonds provide more stability, though they can still be affected by interest rate changes. ETFs and mutual funds offer diversification, which helps spread out risk, but it’s important to factor in any fees.
Real estate presents another reliable way to build wealth, offering steady income through rental properties and long-term appreciation.
For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted internal returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
If you’re looking for another safe-haven investment, gold could be a strong option. The precious metal breached $3,000 per ounce for the first time ever in April 2025. Moreover, J.P. Morgan is forecasting that gold could surpass $4,000 per ounce in 2026.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of American Hartford Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account — combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to potentially hedge their retirement funds against economic uncertainties.
Even better, you can often roll over existing 401(k) or IRA accounts into a gold IRA without tax-related penalties. To learn more, get your free 2025 information guide on investing in precious metals.
Qualifying purchases can also receive up to $20,000 in free silver.
What to read next
- JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
- This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
- Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
- How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Related Posts
