Happy Thursday. Most of us assume the plans we've put in place will hold when we need them to. But the gap between what you've arranged and what actually happens is where retirement gets expensive. Today's issue is about closing that gap before someone else closes it for you.
On The Money Today:
The one move that separates retirees with four times more wealth from those without it
Five habits quietly working against your retirement — and how to catch them now
Why being behind on savings in your 50s isn't the end of the story
Let's get into it.
BEHIND THE HEADLINE
Half of Gen X Americans expect to outlive their retirement savings — and the habits driving that fear often go unnoticed until it's too late to reverse them. Keep reading to find out if any of the five warning signs apply to you.
RETIREMENT
5 toxic traits that could quietly derail your retirement. Are you sabotaging your future with bad habits?
Most retirement mistakes don't announce themselves. They compound over years until there's very little room left to fix them. If you're not sure whether your current habits are working for or against you, this is worth a look.
Why it matters: Northwestern Mutual found 50% of people approaching retirement expect to outlive their savings, and most of the reasons trace back to habits, not circumstances. Catching even one of these early changes the math significantly.
IN PARTNERSHIP WITH insurify
Car insurance costs are up 38% — are you still paying last year's rate?
Every dollar going toward an overpriced premium is a dollar not compounding in your retirement accounts. Car insurance costs surged 38% between 2020 and 2024, and most people are overpaying simply because they never shop around. Insurify lets you instantly view quotes from top-rated providers in as little as three minutes — for free. You could save up to 20% by bundling your car insurance and home insurance together. Just answer a few basic questions and Insurify will show you the most affordable deals in your area.
RETIREMENT
Behind on saving for retirement? Here's the catch-up plan you can actually use
About one in five Americans over 50 has no retirement savings at all. If that number hits close to home, your peak earning years may be your best remaining window, and there are more levers available than most people realize.
Why it matters: The IRS gives workers 50 and older the ability to contribute more to retirement accounts than younger savers can. Most people don't use it to its full advantage. Combined with your highest earning years, it's the window where the most ground can be made up.
MUST READ
Retirees who make this 1 move end up with 4 times more wealth. Are you on track for your first $1M?
Research shows retirees who do one specific thing consistently end up with two to four times more wealth than those who don't. It's not about picking the right stock or timing the market. And yet most people within five years of retirement still haven't done it.
Why it matters: A T. Rowe Price survey found that people with a formal financial plan retire with two to four times more wealth than those without one, and 17% of Americans within five years of retirement still haven't given it serious thought. That gap compounds every year you wait.
MONEY IQ
According to most financial planners, what's the recommended percentage of your pre-retirement income you should aim to replace each year in retirement?
ALSO MAKING THE ROUNDS TODAY
NEWS: An 81-year-old Texas retiree went back to work hauling luggage 14 hours a day to cover his wife's cancer bills, and your Medicare plan may have the same coverage gap his did
MANAGING MONEY: Leaving money to a pet sounds simple, but doing it without a proper trust means your wishes likely won't be honored after you're gone
MANAGING MONEY: If you die without a will and no close family, state intestacy laws decide where your $3 million goes — and lawyers say it could end up with people you've never met
MONEY IQ ANSWER: HOW DID YOU DO?
The correct answer is B) 70%. In retirement, your expenses shift — no more payroll taxes, commuting costs or work expenses — but healthcare and leisure tend to rise. The 70–80% target accounts for that tradeoff. How long you live and when you claim Social Security will determine whether that number actually holds.
That's a wrap for today! Before you go, we'd love to know what you thought of today's newsletter. Hit REPLY if you have more to share — we read every one.
See you soon with another quick roundup of the financial news that matters.
