Commitment to Our Readers

Retirement should be relaxing, enjoyable and fun. Hopefully, you’ve saved and invested enough money throughout your career so you’re able to enjoy your golden years without financial worries.

According to Empower, the “silver wave” is currently underway. This means that “an estimated record-high 4.1 million Americans will turn 65 in 2024.” More people are now approaching retirement than ever before.

If you’re nearing retirement age and you don’t feel like you’re on the right track, here are eight rules to follow to make retirement saving easy, according to Charles Schwab and Jaspreet Singh.

Put 10% to 15% of Your Income Toward Retirement

As a general rule of thumb, it’s good to start saving 10% to 15% of your income for retirement in your 20s or early 30s. If you’re eligible for an employer match on your 401(k) contributions, be sure to contribute at least enough to get the full match. It’s free money that you won’t want to miss out on.

Follow the 4% Rule

This rule means you should add up the value of all your investments during the first year of retirement and then withdraw 4% of the total. After the first year, you can adjust the dollar amount you withdraw according to the current inflation rate. Following this rule should result in a comfortable 30-year retirement.

Have 25x Your Planned Annual Spending at the Time of Retirement

It’s best to have about 25x your current gross income saved once you enter retirement. This can be difficult to determine, though, since gross income includes retirement contributions that stop once you enter retirement. It’s wise to work with a financial advisor to better understand how to apply this rule to your financial situation.

Buy What You Can Afford With Cash

If you’re worried about overspending in retirement, stick to paying with cash. Using credit cards can lead to spending above your means, which can land you in debt. Paying with cash only can help you spend within your means and force you to pay for only the things you can actually afford.

Always Prioritize Your Assets Over Your Liabilities

Entering retirement can mean that your income isn’t as high as it used to be. Prioritizing assets and avoiding liabilities can mean the difference between financial security and instability once you call it quits at work.

Don’t Listen to What Everyone Tells You To Do With Your Money

It can be tempting to follow the advice of your barber, best friend or colleague; however, your finances are your decision. Do your own research before you choose where and how to invest and consider working with a financial advisor for the best results.

Track and Optimize Your Money

Tracking and optimizing your money is the key to financial security in retirement. Start by organizing your expenses on a spreadsheet. Make note of your source, or sources, of income. Then, review your credit card and bank statements to determine the categories where you spent your money that month.

Tracking and optimizing your money is a great way to budget, which can help keep your finances in check.

Prepare in Advance in Order To Build Wealth

Financial preparedness means having both an emergency savings cushion and cash to capitalize on investment opportunities. Life can be full of surprises. You could get laid off, you could have to repair your car, your child could need help getting out of financial trouble or you could need money for medical expenses.

You’ll want to be prepared with cash so you can avoid debt. At the same time, having extra money on top of that can mean you’re also prepared to capitalize on investment opportunities when they come up.

More From GOBankingRates

• Dollar Tree: 10 Best New Arrivals for Your Money in July
• In Less Than a Year, You Might Not Be Able To Afford To Live in These 6 US Housing Markets
• 5 Moves Every Woman Should Consider Before Retirement
• This is The Single Most Overlooked Tool for Becoming Debt-Free