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Maryann O’Connor, a single mom who adopted and raised three kids, envisioned a comfortable retirement. However, her reality tells a different story.
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“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. Monarch Money’s expense tracking system can simplify this process for you.
Monarch Money seamlessly connects all your accounts in one place, giving you a clear view of where you’re overspending. Whether you’re looking to save, invest or simply control your expenses, Monarch Money offers the tools to help you succeed. Plus, for a limited time, you can get 50% off your first year with the code MONARCHVIP.
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.
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. Thanks to modern crowdfunding platforms like Arrived, you don’t need to buy entire properties or have large amounts of capital to get started.
Arrived allows you to enter the real estate market for as little as $100. It offers you access to shares of SEC-qualified investments in rental homes and vacation rentals, curated and vetted for their appreciation and income potential.
Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit these properties into your investment portfolio regardless of your income level. Their flexible investment amounts and simplified process allows accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any extra work on your part.
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.
You can take advantage of the long-term market potential of this precious metal by starting a gold IRA with help from Thor Metals.
This can be a secure and stable investment option, enhancing diversification and safeguarding your cash value against economic uncertainties.
Plus, you can get $20,000 in free precious metals with a qualifying purchase. Thor Metals offers expert guidance and secure storage of your precious metals assets in partnership with IRS-approved depositories.
They also provide guides for investors to help you to better understand the market and make sound decisions about your investments. Get your free guide today to find out if a gold IRA is the right investment option for you.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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