How can I have enough retirement income?

Read time: 2 to 3 minutes

If you’re worried about having enough income in retirement—just know it’s not as tricky as you might think. In this article, we provide easy strategies to get the most from your savings—and show you how to close the gap if your savings aren’t quite on track.

Improve your odds by using an online calculator

You’ve saved for years. But will it be enough for a comfortable retirement?

Our retirement income calculator can quickly tell you how much income you may need, based on the amount of money you save.

Demolish your debts

You’ll need less money to live on retirement if you have fewer debts. So start by paying off your debts before retiring.

Try this approach:

Knock off little debts first. Quick progress early on can build confidence.
Pay down bigger debts. Next, target your highest interest rate debt. This is most likely a credit card. Pay extra until you pay off the balance. From there, move on to the debt with the next highest interest rate. Repeat the process until all your debts are paid off.

Each debt you’re able to eliminate is one less bill to pay in retirement. And that can bring considerable peace of mind.

Learn more about different approaches to paying off debt

Catch up on retirement savings

A lot of us got off to a slow start saving for retirement. If that describes you, now is the time to become a super saver.

If you’ll be age 50 or older this year and your employer’s plan allows catch-up contributions, you can save up to $30,500 in the plan in 2024. That’s $7,500 a year more than workers under age 50 can save. And as of 2025, if you're ages 60 through 63 on the last day of the calendar year and your plan allows, you may be able to save an additional $3,750 in catch-up contributions.

Earn money doing what you love

Continuing to work past retirement is a good way to stay active and socially engaged. Plus, it might be a chance to change gears, especially if you work at something you're truly passionate about.

Love tennis? Maybe you could give lessons. Or maybe a part-time job with a favorite nonprofit would be a fulfilling way to help make ends meet.

Effect on Social Security benefits

Continuing to work can reduce your Social Security benefits if you start your benefits before your full retirement age. So be sure to read over the rules.*

*When you visit this site, you will be leaving our site. Vanguard is not responsible for the accuracy of information on third-party sites. Vanguard receives no remuneration for website links.

Embrace the simple life

Some people enjoy living more simply in retirement. And they live on a lot less money in the process. Here are three ways to reduce your expenses:

Downsize
For most of us, housing is our biggest expense. Retiring to a smaller home usually means lower property taxes and maintenance costs.

Do it yourself
Plant a vegetable garden. Paint the kitchen. Greater self-reliance not only lowers the cost of retirement, it can also be highly gratifying.

Have only one car
In retirement, many people manage just fine with only one car. Between insurance, fuel, and maintenance costs, cutting one car out of your budget could save you thousands.

Whenever you invest, there’s a chance you could lose the money