Suze Orman warned a $2 million nest egg is ‘chump change’ — this is how to catch up on your retirement savings

Dominik Bindl/Getty Images

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.

With 4.1 million Americans reaching the retirement age in 2024 alone, very few will find themselves financially prepared to retire by one financial expert’s count.

In 2024, Suze Orman wrote that “even big retirement savers are at risk” because of rising longevity.

“Plan for your money to last until at least age 95, or even 100 if you have a family history of longevity.” This means that your money may have to last for 35 years after you retire, making even $2 million look like chump change.

A 2024 study from Northwestern Mutual shows that Americans believe they need $1.46 million to retire comfortably, but the current American’s average retirement savings sit at just $88,000. Nowhere near enough for a comfortable retirement by Orman’s standard.

If you’re one of many Americans feeling behind on saving for retirement, however, there are a few things you can do to catch up.

Must Read

Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how 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) Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP

Are you behind on saving for retirement?

Catching up on savings gets harder as we age, and we also lose out on the power of compound interest.

Orman wrote that another solid retirement rule of thumb is to have 10x your current income saved by the time you are 67 years old. Following this, you should have 3x your income saved by age 40 and 6x by age 50.

If you are skeptical about market fluctuations or worried about inflation eroding your savings, you can also choose to invest your money in gold.

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.

To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.

Seek professional guidance for peace of mind

Retirees can also make the mistake of paying for withdrawals to access money during retirement, losing savings to costly tax deductions.

Story Continues

To keep more of your money in your investments, Orman has long touted the advantages of putting your money in Roth IRAs. Roth IRAs aren’t taxed when you make contributions, or when you withdraw, so they’re a popular retirement investment option.

If you think you are falling behind, you may want to seek expert guidance.

RothIRA.org provides personalized expert advice for anyone with a portfolio of $100K or more.

It’s a simple, straightforward process: Simply enter your information, and then you will be automatically matched with two or three advisors near you. From there, you can schedule screening calls for free with no obligation to hire and find the right fit for you.

Plus, all their advisors are pre-screened and licensed with SEC/FINRA, which can offer you peace of mind.

Read more: Rich, young Americans are ditching stocks — here are the alternative assets they're banking on instead

More ways to save during retirement

Suze Orman may not believe that a $2 million dollar retirement portfolio is enough to see you through your golden years, but there are still many methods to grow savings that can give retirees a comfortable cushion.

While Orman has faced significant backlash for her statements, with critics arguing that her figures are unattainable for most, the underlying principle she advocates is prudence.

In a recent LinkedIn post, Orman wrote, “I encourage you to keep returning to this thought exercise. What are the financial steps you might take today to be kindest to your future older self? The 88-year-old, the 90-year-old, the 95-year-old?”

For instance, she has always said you should try to pay off your home before you retire.

Whether that’s in the cards for you or not, striking while the real estate market is hot is another option for retirement-minded investors who are also looking for some passive income now and throughout their golden years.

Real estate for your retirement portfolio

For instance, companies like Arrived allow you to invest in shares of rental homes and vacation rentals without opening a new mortgage or taking on the responsibilities of property management.

With Arrived, you can browse a curated selection of homes, each vetted for their appreciation and income potential. Once you find a property you like, you can choose the number of shares you want to buy and start investing in real estate with as little as $100.

You can also use the power of the current real estate market to fund your retirement through your IRA. With First National Realty Partners (FNRP), accredited individual investors can allocate funds in their Roth IRA towards investments with FNRP, and receive tax-free payments and distributions that won’t be added to combined income calculations.

FNRP allows you to access institutional-quality commercial real estate investments — without the legwork of finding deals yourself. Their relationships with the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods, means their commercial real estate investments are likely to remain stable and desirable properties.

When you sign up with FNRP, you can engage with experts, explore available deals, and easily make an allocation in an all-in-one personalized portal.

What to read next

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 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 Commercial real estate has beaten the stock market for 25 years — but only the super-rich could buy in. Here's how even ordinary investors can become the landlord of Walmart, Whole Foods or Kroger The biggest myth in real estate investing? That you need big money. Here are 5 ways to grow your wealth — starting with just $10

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

View Comments