Only 30 years to go. Will millennials be ready for retirement?

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The oldest members of the millennial generation turned 35 this year. That means those who want leave the workforce at the traditional retirement age of 65 have 30 years left to prepare for retirement.

That may seem like a lot of time, but some millennials might need to meet their retirement goals sooner. According to a survey of 2,000 adults by the Million Dollar Round Table, millennials cite an average age of 62 as when they want to retire. However, getting there could be hard, as 91 percent of surveyed millennials say they don't even have a retirement plan yet.

Many millennials entered the workforce at a time when higher unemployment resulted in more competition for jobs with lower salaries. "Coming out of graduate school, we hit the great recession," says Steve Seigel, a 33-year-old millennial, former investment banker and member of the advisory board for home care tech firm Honor. Cash-strapped millennials carrying heavy student loan debt may not have had the reserves to devote to retirement savings early in their career, but finance professionals say it's not too late to start now.

"At 35 years old, you're still really young," says Bob Gavlak, a millennial and wealth advisor with Strategic Wealth Partners in Columbus, Ohio. However, he cautions against using age as a reason to procrastinate. "You don't want to get to the point where you're behind the eight ball and now just kicking the can down the road."

52 PHOTOS
Best states for early retirement
See Gallery
Best states for early retirement
51. Connecticut

Average Effective Tax Rate: 3.7%

Annual Health Insurance Cost: $8,945

Non-Housing Cost of Living: 120

Median Annual Housing Costs: $16,776

Average Effective Property Tax Rate: 2.1%

Average State and Local Sales Tax Rate: 6.4%

Index: 0.00

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50. North Carolina

Average Effective Tax Rate: 4.7%

Annual Health Insurance Cost: $10,272

Non-Housing Cost of Living: 100

Median Annual Housing Costs: $10,392

Average Effective Property Tax Rate: 0.9%

Average State and Local Sales Tax Rate: 6.9%

Index: 5.83

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49. Minnesota

Average Effective Tax Rate: 4.5%

Annual Health Insurance Cost: $6,816

Non-Housing Cost of Living: 107

Median Annual Housing Costs: $12,192

Average Effective Property Tax Rate: 1.1%

Average State and Local Sales Tax Rate: 7.3%

Index: 10.83

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48. Massachusetts

Average Effective Tax Rate: 4.5%

Annual Health Insurance Cost: $5,306

Non-Housing Cost of Living: 119

Median Annual Housing Costs: $16,920

Average Effective Property Tax Rate: 1.2%

Average State and Local Sales Tax Rate: 6.3%

Index: 13.06

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47. New Jersey

Average Effective Tax Rate: 2.0%

Annual Health Insurance Cost: $8,347

Non-Housing Cost of Living: 113

Median Annual Housing Costs: $18,000

Average Effective Property Tax Rate: 2.4%

Average State and Local Sales Tax Rate: 7.0%

Index: 13.89

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46. Oregon

Average Effective Tax Rate: 7.1%

Annual Health Insurance Cost: $6,991

Non-Housing Cost of Living: 117

Median Annual Housing Costs: $12,432

Average Effective Property Tax Rate: 1.0%

Average State and Local Sales Tax Rate: 0.0%

Index: 15.00

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45. Wisconsin

Average Effective Tax Rate: 4.4%

Annual Health Insurance Cost: $7,726

Non-Housing Cost of Living: 100

Median Annual Housing Costs: $10,884

Average Effective Property Tax Rate: 1.9%

Average State and Local Sales Tax Rate: 5.4%

Index: 16.39

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43. Nebraska

Average Effective Tax Rate: 4.0%

Annual Health Insurance Cost: $6,862

Non-Housing Cost of Living: 95

Median Annual Housing Costs:$9,900

Average Effective Property Tax Rate: 1.85%

Average State and Local Sales Tax Rate: 6.8%

Index: 41.71

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43. Maryland

Average Effective Tax Rate: 6.5%

Annual Health Insurance Cost: $6,418

Non-Housing Cost of Living: 100

Median Annual Housing Costs: $17,280

Average Effective Property Tax Rate: 1.1%

Average State and Local Sales Tax Rate: 6.0%

Index: 21.39

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42. California

Average Effective Tax Rate: 3.6%

Annual Health Insurance Cost: $7,346

Non-Housing Cost of Living: 111

Median Annual Housing Costs: $17,256

Average Effective Property Tax Rate: 0.8%

Average State and Local Sales Tax Rate: 8.5%

Index: 26.11

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41. Missouri

Average Effective Tax Rate: 3.7%

Annual Health Insurance Cost: $7,757

Non-Housing Cost of Living: 96

Median Annual Housing Costs: $9,744

Average Effective Property Tax Rate: 1.0%

Average State and Local Sales Tax Rate: 7.9%

Index: 27.22

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40. Hawaii

Average Effective Tax Rate: 6.0%

Annual Health Insurance Cost: $6,672

Non-Housing Cost of Living: 145

Median Annual Housing Costs: $18,396

Average Effective Property Tax Rate: 0.3%

Average State and Local Sales Tax Rate: 4.4%

Index: 28.33

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39. Georgia

Average Effective Tax Rate: 3.9%

Annual Health Insurance Cost: $7,286

Non-Housing Cost of Living: 97

Median Annual Housing Costs: $11,364

Average Effective Property Tax Rate: 0.9%

Average State and Local Sales Tax Rate: 7.0%

Index: 30.83

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38. South Carolina

Average Effective Tax Rate: 3.6%

Annual Health Insurance Cost: $7,757

Non-Housing Cost of Living: 102

Median Annual Housing Costs: $9,756

Average Effective Property Tax Rate: 0.6%

Average State and Local Sales Tax Rate: 7.2%

Index: 32.22

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37. District of Columbia

Average Effective Tax Rate: 4.7%

Annual Health Insurance Cost: $6,300

Non-Housing Cost of Living: 108

Median Annual Housing Costs: $18,924

Average Effective Property Tax Rate: 0.5%

Average State and Local Sales Tax Rate: 5.8%

Index: 35.56

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36. Oklahoma

Average Effective Tax Rate: 3.8%

Annual Health Insurance Cost: $7,603

Non-Housing Cost of Living: 95

Median Annual Housing Costs: $9,072

Average Effective Property Tax Rate: 0.9%

Average State and Local Sales Tax Rate: 8.8%

Index: 36.11

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35. Rhode Island

Average Effective Tax Rate: 2.6%

Annual Health Insurance Cost: $6,708

Non-Housing Cost of Living: 117

Median Annual Housing Costs: $13,740

Average Effective Property Tax Rate: 1.6%

Average State and Local Sales Tax Rate: 7.0%

Index: 36.39

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34. New York

Average Effective Tax Rate: 2.9%

Annual Health Insurance Cost: $4,428

Non-Housing Cost of Living: 111

Median Annual Housing Costs: $15,060

Average Effective Property Tax Rate: 1.7%

Average State and Local Sales Tax Rate: 8.5%

Index: 38.06

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32. Maine

Average Effective Tax Rate: 3.0%

Annual Health Insurance Cost: $7,817

Non-Housing Cost of Living: 112

Median Annual Housing Costs: $10,608

Average Effective Property Tax Rate: 1.4%

Average State and Local Sales Tax Rate: 5.5%

Index: 39.72

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32. Indiana

Average Effective Tax Rate: 4.5%

Annual Health Insurance Cost: $7,027

Non-Housing Cost of Living: 93

Median Annual Housing Costs: $9,636

Average Effective Property Tax Rate: 0.9%

Average State and Local Sales Tax Rate: 7.0%

Index: 39.72

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31. Alabama

Average Effective Tax Rate: 4.1%

Annual Health Insurance Cost: $7,380

Non-Housing Cost of Living: 95

Median Annual Housing Costs: $8,724

Average Effective Property Tax Rate: 0.4%

Average State and Local Sales Tax Rate: 9.0%

Index: 40.56

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30. Vermont

Average Effective Tax Rate: 3.1%

Annual Health Insurance Cost: $5,616

Non-Housing Cost of Living: 112

Median Annual Housing Costs: $13,020

Average Effective Property Tax Rate: 1.8%

Average State and Local Sales Tax Rate: 6.2%

Index: 40.83

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29. Idaho

Average Effective Tax Rate: 4.9%

Annual Health Insurance Cost: $7,121

Non-Housing Cost of Living: 96

Median Annual Housing Costs: $9,948

Average Effective Property Tax Rate: 0.7%

Average State and Local Sales Tax Rate: 6.0%

Index: 43.06

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27. West Virginia

Average Effective Tax Rate: 4.1%

Annual Health Insurance Cost: $9,358

Non-Housing Cost of Living: 104

Median Annual Housing Costs: $6,864

Average Effective Property Tax Rate: 0.6%

Average State and Local Sales Tax Rate: 6.2%

Index: 44.17

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27. Kansas

Average Effective Tax Rate: 3.3%

Annual Health Insurance Cost: $6,547

Non-Housing Cost of Living: 94

Median Annual Housing Costs: $10,056

Average Effective Property Tax Rate: 1.4%

Average State and Local Sales Tax Rate: 8.6%

Index: 44.17

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26. Arkansas

Average Effective Tax Rate: 3.5%

Annual Health Insurance Cost: $7,409

Non-Housing Cost of Living: 96

Median Annual Housing Costs: $8,172

Average Effective Property Tax Rate: 0.6%

Average State and Local Sales Tax Rate: 9.3%

Index: 45.56

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25. Virginia

Average Effective Tax Rate: 3.4%

Annual Health Insurance Cost: $7,390

Non-Housing Cost of Living: 95

Median Annual Housing Costs: $14,520

Average Effective Property Tax Rate: 0.8%

Average State and Local Sales Tax Rate: 5.6%

Index: 45.83

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24. Illinois

Average Effective Tax Rate: 0.0%

Annual Health Insurance Cost: $6,766

Non-Housing Cost of Living: 99

Median Annual Housing Costs: $12,624

Average Effective Property Tax Rate: 2.3%

Average State and Local Sales Tax Rate: 8.6%

Index: 46.94

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23. Utah

Average Effective Tax Rate: 4.6%

Annual Health Insurance Cost: $6,163

Non-Housing Cost of Living: 95

Median Annual Housing Costs: $12,576

Average Effective Property Tax Rate: 0.7%

Average State and Local Sales Tax Rate: 6.7%

Index: 50.56

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22. Washington

Average Effective Tax Rate: 0.0%

Annual Health Insurance Cost: $6,166

Non-Housing Cost of Living: 106

Median Annual Housing Costs: $14,400

Average Effective Property Tax Rate: 1.0%

Average State and Local Sales Tax Rate: 8.9%

Index: 51.67

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21. Arizona

Average Effective Tax Rate: 2.5%

Annual Health Insurance Cost: $7,054

Non-Housing Cost of Living: 98

Median Annual Housing Costs: $11,436

Average Effective Property Tax Rate: 0.7%

Average State and Local Sales Tax Rate: 8.3%

Index: 51.67

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20. Iowa

Average Effective Tax Rate: 3.2%

Annual Health Insurance Cost: $7,375

Non-Housing Cost of Living: 95

Median Annual Housing Costs: $9,324

Average Effective Property Tax Rate: 1.5%

Average State and Local Sales Tax Rate: 6.8%

Index: 52.50

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19. Montana

Average Effective Tax Rate: 4.0%

Annual Health Insurance Cost: $8,239

Non-Housing Cost of Living: 98

Median Annual Housing Costs: $9,540

Average Effective Property Tax Rate: 0.8%

Average State and Local Sales Tax Rate: 0.0%

Index: 52.78

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18. Alaska

Average Effective Tax Rate: 0.0%

Annual Health Insurance Cost: $18,300

Non-Housing Cost of Living: 127

Median Annual Housing Costs: $15,012

Average Effective Property Tax Rate: 1.1%

Average State and Local Sales Tax Rate: 1.8%

Index: 53.89

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17. Delaware

Average Effective Tax Rate: 3.1%

Annual Health Insurance Cost: $9,060

Non-Housing Cost of Living: 106

Median Annual Housing Costs: $13,176

Average Effective Property Tax Rate: 0.5%

Average State and Local Sales Tax Rate: 0.0%

Index: 55.00

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16. North Dakota

Average Effective Tax Rate: 1.0%

Annual Health Insurance Cost: $8,340

Non-Housing Cost of Living: 102

Median Annual Housing Costs: $9,276

Average Effective Property Tax Rate: 1.0%

Average State and Local Sales Tax Rate: 6.8%

Index: 55.83

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15. Colorado

Average Effective Tax Rate: 2.4%

Annual Health Insurance Cost: $7,166

Non-Housing Cost of Living: 97

Median Annual Housing Costs: $14,340

Average Effective Property Tax Rate: 0.5%

Average State and Local Sales Tax Rate: 7.5%

Index: 56.94

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14. Michigan

Average Effective Tax Rate: 3.2%

Annual Health Insurance Cost: $6,622

Non-Housing Cost of Living: 96

Median Annual Housing Costs: $10,152

Average Effective Property Tax Rate: 1.6%

Average State and Local Sales Tax Rate: 6.0%

Index: 58.33

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13. Ohio

Average Effective Tax Rate: 1.7%

Annual Health Insurance Cost: $6,494

Non-Housing Cost of Living: 97

Median Annual Housing Costs: $9,912

Average Effective Property Tax Rate: 1.6%

Average State and Local Sales Tax Rate: 7.1%

Index: 58.61

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12. New Hampshire

Average Effective Tax Rate: 0.0%

Annual Health Insurance Cost: $6,792

Non-Housing Cost of Living: 115

Median Annual Housing Costs: $15,168

Average Effective Property Tax Rate: 2.2%

Average State and Local Sales Tax Rate: 0.0%

Index: 59.17

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10. New Mexico

New Mexico is tied with Nevada as the 10th best state for an early retirement. New Mexico ranks well in the cost of living measures. It has the second-lowest average healthcare expense at $5,200 per year, as well as the 10th-lowest average housing cost at $9,300 per year. A potential drawback to retiring early in New Mexico is the lack of doctors’ offices. According to data from the Census Bureau, New Mexico has only 4.7 doctors’ offices per 10,000 residents, which ranks 43rd in the nation.

Average Effective Tax Rate: 2.9%

Annual Health Insurance Cost: $5,244

Non-Housing Cost of Living: 99

Median Annual Housing Costs: $9,324

Average Effective Property Tax Rate: 0.8%

Average State and Local Sales Tax Rate: 7.5%

Index: 64.17

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10. Nevada

High rollers may be pleased to see Nevada crack our top 10. Nevada offers a 0% effective tax rate on income and has the sixth-most doctors’ offices per resident, meaning help is never far away. Living costs in the Silver State can be fairly steep though, including a combined $20,000 per year on housing and healthcare costs on average.

Average Effective Tax Rate: 0.0%

Annual Health Insurance Cost: $8,016

Non-Housing Cost of Living: 110

Median Annual Housing Costs: $12,312

Average Effective Property Tax Rate: 0.7%

Average State and Local Sales Tax Rate: 8.0%

Index: 64.17

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9. Louisiana

Louisiana has a lot to offer as a state for an early retirement. The third-lowest property taxes, seventh-lowest housing cost, ninth-lowest non-housing cost of living and eighth-highest rate of doctors’ offices in the country are all on offer for people looking to retire in Louisiana. Unfortunately, Louisiana is not a utopia for early retirees. There are relatively few arts, entertainment and recreation establishments per 100,000 residents and it has one of the highest sales tax rates in the country.

Average Effective Tax Rate: 1.9%

Annual Health Insurance Cost: $9,002

Non-Housing Cost of Living: 95

Median Annual Housing Costs: $9,060

Average Effective Property Tax Rate: 0.5%

Average State and Local Sales Tax Rate: 9.0%

Index: 65.00

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8. Texas

Texas has a little bit of everything, meaning just about anyone can find themselves at home there. The Lone Star State has no income tax and the non-housing cost of living is low. The average cost of an annual silver healthcare plan in Texas is $6,626. That’s the 14th-lowest. However housing costs can get pretty high relative to everything else. The average Texan pays $11,600 per year in housing costs.

Average Effective Tax Rate: 0.0%

Annual Health Insurance Cost: $6,626

Non-Housing Cost of Living: 95

Median Annual Housing Costs: $11,616

Average Effective Property Tax Rate: 1.8%

Average State and Local Sales Tax Rate: 8.2%

Index: 65.28

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7. Pennsylvania

Like many in the top 10, Pennsylvania is another state which does not tax retirement income which makes it a great option for an early retirement. Pennsylvania also has the 10th-lowest average healthcare costs in the country. The average cost of a silver healthcare plan in Pennsylvania is only $6,500 per year.

Average Effective Tax Rate: 0.0%

Annual Health Insurance Cost: $6,547

Non-Housing Cost of Living: 103

Median Annual Housing Costs: $11,184

Average Effective Property Tax Rate: 1.6%

Average State and Local Sales Tax Rate: 6.3%

Index: 74.17

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6. Florida

The state that is famous for its retirees and bad drivers comes in sixth place for best states for an early retirement. Florida ranks well because of its 0% income tax rate and the 9.15 doctors’ offices per 10,000 residents. But living costs in Florida can get pretty high. Average housing costs are almost $12,000 per year and the non-housing cost of living sits at 102 which rank 30th and 31st respectively.

Average Effective Tax Rate: 0.0%

Annual Health Insurance Cost: $7,243

Non-Housing Cost of Living: 102

Median Annual Housing Costs: $11,976

Average Effective Property Tax Rate: 1.0%

Average State and Local Sales Tax Rate: 6.7%

Index: 75.56

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5. Tennessee

The Southern theme continues with Tennessee claiming the fifth spot for best states for an early retirement. Tennessee is another state with a 0% effective income tax which is only partly offset by the nation’s highest average state and local sales taxes at 9.5%. Tennessee also has 6.55 doctors’ offices per 10,000 residents and 36 arts, entertainment and recreation establishments per 100,000 residents.

Average Effective Tax Rate: 0.0%

Annual Health Insurance Cost: $7,447

Non-Housing Cost of Living: 95

Median Annual Housing Costs: $9,576

Average Effective Property Tax Rate: 0.7%

Average State and Local Sales Tax Rate: 9.5%

Index: 77.78

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4. South Dakota

The Mount Rushmore State is another great option for an early retirement. Other than the gorgeous scenery, South Dakota can offer potential early retirees a 0% effective income tax and some of the lowest housing costs in the country at $8,900 per year on average. Besides gazing at Mount Rushmore, there are plenty of things to do. There are 79 arts, entertainment and recreation establishments per 100,000 residents – the second-highest in the nation.

Average Effective Tax Rate: 0.0%

Annual Health Insurance Cost: $8,208

Non-Housing Cost of Living: 95

Median Annual Housing Costs: $8,964

Average Effective Property Tax Rate: 1.3%

Average State and Local Sales Tax Rate: 5.8%

Index: 87.22

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3. Mississippi

Mississippi is the second-highest-rated Southern state and third-highest overall for best states for an early retirement. Mississippi is similar to Kentucky in that it is a cheap place to retire. It has a 0% effective tax on retirement income. It also has the lowest non-housing cost of living as well as the second-lowest housing costs in the nation. So why isn’t it first or second? There are only 22 arts, entertainment and recreation establishments per 100,000 people – the lowest in the nation. There are also not as many doctors’ offices in Mississippi as there are in other states. Our data shows that it ranks 33rd in this measure.

Average Effective Tax Rate: 0.0%

Annual Health Insurance Cost: $6,922

Non-Housing Cost of Living: 89

Median Annual Housing Costs: $8,136

Average Effective Property Tax Rate: 0.8%

Average State and Local Sales Tax Rate: 7.1%

Index: 95.28

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2. Kentucky

The Bluegrass State comes in a close second, thanks to six metrics scoring in the top 20 and its tax-friendly environment. Particularly attractive for prospective early retirees are the low costs of living. Kentucky ranks fourth in average housing costs per year at $8,600 and fifth in non-housing cost of living. But early retirees in Kentucky may need to develop some personal hobbies. According to data from the Census, there are only 28 arts, entertainment and recreation establishments per 100,000 residents, 44th best in the country.

Average Effective Tax Rate: 1.0%

Annual Health Insurance Cost: $6,593

Non-Housing Cost of Living: 94

Median Annual Housing Costs: $8,628

Average Effective Property Tax Rate: 0.8%

Average State and Local Sales Tax Rate: 6.0%

Index: 96.67

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1. Wyoming

Wyoming jumps two places from last year to take the top spot in our study of best places for an early retirement. This state offers an effective tax rate of 0% on retirement income and has the third-lowest non-housing cost of living. To go with the relatively cheap living costs, Wyoming also has 73 arts, entertainment and recreation establishments per 100,000 people. That score ranks fifth in that metric. What hurt Wyoming (although not enough to prevent it from snagging first place) is the relatively high average healthcare costs. Wyoming ranks second to last in this measure paying an average of $11,000 per year. Only Alaskans pay more.

Average Effective Tax Rate: 0.0%

Annual Health Insurance Cost: $11,705

Non-Housing Cost of Living: 93

Median Annual Housing Costs: $10,296

Average Effective Property Tax Rate: 0.6%

Average State and Local Sales Tax Rate: 5.4%

Index: 100.00

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[See: 10 Retirement Planning Moves to Make in Your 20s.]

Millennials have other priorities. Millennials have diverged from previous generations in many ways. They marry later, buy their first house later and, according to some finance professionals, begin saving for retirement later. "Professionally, I do not see nearly as many millennials come through my door as I would like to," says Darrell Smith, a millennial and financial consultant for Citizens Bank. It can be tempting for millennials to think retirement is a distant event that will sort itself out by the time they get there.

Plus, many young adults have the immediate concern of paying off their student loans. "A lot of kids are coming out with $30,000, $40,000 or even $100,000 in student loan debt," says Brian Heckert, author of "401(k)nowhow: An Insider's Guide to Retirement Plan Options" and immediate past president of the Million Dollar Round Table. "It's holding them back about 10 years [compared to] my generation."

Millennials may be digging out of debt, but Gavlak argues being debt-free shouldn't come at the cost of other financial goals. "You need to balance the desire to pay those off with starting to put some aside for the long-term and retirement," he says.

[See: How to Save for Retirement on Less Than $40,000 Per Year.]

Don't overreact, but action is needed. Smith is concerned about older millennials who haven't started saving for retirement. "I don't know that I would take it quite to the extent of saying freaking out, but there should be urgency," Smith says. Saving a small amount early in your career can dramatically impact your retirement finances. Money invested today will have more time to grow and compound, making it important to start saving as soon as possible.

Before they can start investing, Smith says millennials should make sure they have a cash reserve for emergencies and insurance for risk-management. Otherwise, they may end up in a situation in which they need to pull money from retirement funds to weather a financial storm, which could result in significant taxes and penalties.

17 PHOTOS
8 mistakes that can sabotage your retirement
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8 mistakes that can sabotage your retirement

Mistake 1: Failing to plan for medical expenses

Medicare kicks in at age 65, but that’s not the end of your medical expenses. Fidelity Benefits Consulting estimates a 65-year-old couple who retired in 2014 will need $220,000 of their own money for medical expenses over the course of retirement. Such costs include deductibles for Medicare Part A and Part B (in-patient and out-patient insurance), and premiums and out-of-pocket costs for Medicare Part D prescription drug coverage.

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Take action:

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Mistake 2: Underestimating costs

Retirement costs can be surprising — surprisingly high, that is. You may find that to manage costs, you need to earn some extra income — not the end of the world, but possibly not what you had in mind. If you do take this path, check the Social Security Administration’s rules for working while receiving Social Security benefits.

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Take action: The good news is, in the emerging economy, it should be easier to find money-making opportunities that fit a retirement lifestyle: There are lots of jobs you can do from home, and lots of ways to earn a little money on the side. If you’re lucky, it may be something you love to do as a hobby — say gardening, tending pets, caring for children or working as a handyman. If you’re in the market for a new job, brush up your resume and skills. Check out “7 Tips to Find a Job in Retirement.”

Mistake 3: Celebrating retiring with a big purchase

No doubt you’ve got a wish list for retirement. But hold off on making major purchases at first. Instead, give retirement a spin and see what you’re spending each month.

Track expenses — every single one. A year’s tracking gives the best picture because it includes one-time and seasonal expenses.

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Take action: It doesn’t matter what tracking system you use. Just find one you like and keep it up. Keep receipts, watch bank and credit card accounts online on a weekly basis, and update your tracking regularly. Here are a few approaches:

  • Try free online budget programs. Money Talks News partner PowerWallet lets you track expenses automatically for free. It and other free money management services like Mint and BudgetTracker make money by recommending financial products and supplying coupons.
  • Pay for a program such as Quicken.
  • Do it yourself. Track expenditures manually and offline on a spreadsheet.

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Mistake 4: Helping out adult kids

Many parents set themselves up for a crisis in retirement by supporting adult children financially. A study by Merrill Lynch says 60 percent of people 50 and older are assisting adult relatives financially.

If you are a parent who gives money to an adult child, remember the following: Adult children still have time to pay off college loans and save for retirement. Their parents — in other words, you — are running out of time to save for the golden years ahead.

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Take action:

  • Make a concrete plan with goals and deadlines for gradually withdrawing financial help from your kids.
  • Discuss the changes with your kids and help them learn to budget.
  • Model financial restraint and responsibility for your kids.

For more tips, read “Still Supporting Your Adult Kids? 5 Steps for Cutting Them Off.”

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Mistake 5: Claiming Social Security too soon

Waiting to claim Social Security benefits is one of the best investments around. If your full retirement age is somewhere between 66 and 67, your benefit check could grow by 32 percent if you wait until age 70 to collect, Social Security spokesman Michael Webb said in an email. If your full retirement age is 67, waiting until 70 yields a maximum possible increase of 24 percent.

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On the other hand, about half of retirees take Social Security at the earliest possible moment — when they’re 62. U.S. News & World Report says:

Social Security benefits are reduced for workers who sign up at age 62, and the amount of the reduction has recently increased from 20 percent for people born in 1937 or earlier to 25 percent for baby boomers born between 1943 and 1954. … The reduction in benefits for people claiming at age 62 will further increase to 30 percent for everyone born in 1960 or later under current law.

This Social Security Administration table shows the reduction for taking early Social Security benefits depending on the year you were born.

Take action:

  • Go to SocialSecurity.gov’s My Account to see your estimated benefits. If you’ve paid into the Social Security system, you can create an account and pull up a statement showing what you’ll earn by claiming benefits at various ages.
  • Keep your current job if you can and delay retirement. Or get a part-time job that helps you hang on longer before claiming benefits.
  • Hire a Certified Financial Planner to review your retirement plan, income and expenses with you.

For more tips on boosting your benefits, head to our Social Security Solutions Center Page, and read “13 Ways to Get More Social Security.”

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Mistake 6: Forgetting about the tax man

The IRS won’t disappear from your life when you retire.

For instance, traditional tax-deferred retirement plans like 401(k)s and IRAs require you to withdraw a minimum amount each year beginning in the year you turn 70½. If you don’t, you could be hit with a big penalty.

You can read more about required distributions at this page of the IRS website.

​Good planning, especially before retirement, can help manage the tax bite. One strategy, Money Talks News founder Stacy Johnson says, is to roll a portion of retirement savings into a Roth retirement plan, which has no minimum distribution requirements. Roth plans require taxes to be paid before money goes in. You withdraw the funds tax-free later. The strategies you use will depend on your income now and what you expect it to be after retirement.

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Take action: Make a plan — or get expert help making one — that takes taxable retirement income into account.

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Mistake 7: Ignoring estate planning

Get your affairs in order before you’re ill or old so you’ll have control over where your money and possessions go. It’s a kindness to your heirs, too, because they won’t be saddled with the work.

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Take action:

  • Make or update your will and, if appropriate, make a revocable living trust.
  • Sign a durable power of attorney naming someone you trust to make your legal and financial decisions if you cannot.
  • Assign health care power of attorney to someone to make your medical decisions if you’re unable.

Mistake 8: Investing too conservatively

As retirement grows nearer, it seems prudent to invest more conservatively. But you could live another 20 or 30 years. Savings held too conservatively shrink because of inflation. A portion of your funds needs to grow.

“Never taking risk means taking a different risk,” Stacy Johnson says.

Take action: Learn about investing so you can be confident in taking measured risks to earn gains, even as you grow older. It’s not difficult to put up the basic rules for sane investing — how spread risk among diverse holdings, how to use index funds as a low-maintenance investment strategy, how avoid paying excessive fees and how to adjust your exposure to risk so that it decreases as you get closer to withdrawing the money.

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[See: 10 Painless Ways to Save More for Retirement.]

How millennials can invest easily. Once those safeguards are in place, it's time to start investing for retirement. Gavlak says the most obvious place to save is in a 401(k) plan that offers an employer match. "I say this like it should be a no-brainer, but it's surprising how many people don't do it," he says. Getting a company match can be an easy way to quickly boost the balance in a retirement account.

Beyond that, Seigel sees millennials finding innovative ways to save money for retirement or other long-term goals. "I look at millennials, and it's a really engaged and smart demographic," he says. Rather than approach retirement savings in the same way as generations past, young adults are looking for simple ways to put money aside automatically.

Seigel uses the Acorns app to round up purchase prices and deposit the change into an investment account. Betterment is another startup website that offers tools geared toward younger savers. "A lot of these platforms are created by millennials," Seigel says, adding that they serve less affluent people who are often locked out of traditional wealth management firms.

Millennials may feel like they have all the time in the world before hitting retirement, but those years could pass quickly. Just ask the baby boomers who are now in their 60s.


How to Max Out Your 401(k) in 2017

Copyright 2016 U.S. News & World Report


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