Southern Europe tends to suit those looking for warmer climates and a better cost profile, while northern Europe works for those seeking better infrastructure and public services, which often come at a higher price. Here are Investopedia’s top 12 European countries to consider for retiring abroad.

Austria

Austria offers a refined Central European setting with high living standards and a well-preserved cultural heritage. Vienna and Salzburg consistently rank high on “best cities to live” lists, including Investopedia’s. Strong public transportation, safety and culture make these cities desirable.

While German is Austria’s official language, English is widely spoken, with Austria ranking highly in English proficiency. The country ranks highest on our list of international retirement locations for English proficiency, as well as for the expat community as a percentage of the total population.

The best way to become a resident is through independent income or investment. And while healthcare is strong and there are public and private options, the one drawback is cost. Austria is a moderately expensive country and not the most affordable option in Europe.

Belgium

Belgium’s location provides easy access to France, Germany and the Netherlands, with its rail system making travel straightforward. English is widely spoken, particularly in the larger cities, like Brussels and Antwerp.

Retirees will need to apply for a long-stay resident permit, which would include showing financial means and health insurance. The healthcare system is also strong in Belgium, supported by mandatory healthcare coverage. Tax rates are high in Belgium, especially when compared to central and southern Europe.

Denmark

Denmark is always highly ranked in lists of the world’s happiest countries, generally attributed to its strong social safety nets and public services. It also ranks highly in Europe for English proficiency, making it easier to adapt.

To achieve residency, you’d have to show that you are financially self-sufficient or have family connections. While the cost of living and taxes are high, you benefit from universal healthcare and other strong social services. Denmark’s capital, Copenhagen, is known for its excellent infrastructure, including walkability and cycling.

Finland

Finland ranks highly for safety and security and is also among the happiest places in the world, thanks to its strong social support systems, public services, and high quality of life.

Healthcare is available to all through the subsidized public healthcare system. If you’re worried about taxes, the country has a tax treaty with the U.S. that prevents double taxation on retirement income. While these benefits help in retirement, the one drawback is Finland’s climate. Winters are long with few hours of daylight, which can greatly impact mood and outdoor activities.

Germany

Germany is the largest economy in Europe. It offers strong infrastructure (the highest on our list), public services, and solid healthcare. Americans can usually live in the country through residence permits related to financial independence or family reunification.

Germany ranks highly for English proficiency, especially in larger cities like Berlin and Hamburg. The country has a tax treaty with the U.S. to avoid double taxation. Winters in Germany can also be difficult, with shorter daylight hours and grey weather, particularly in the north.

Greece

One of Greece’s main draws is its Mediterranean lifestyle, which includes access to the sea and warm weather. Greece is also an affordable option for retirees. In fact, the average cost of living in Greece is about half that of the U.S.25 In our list of international retirement locations, Greece scores extremely high on the rent index and local purchasing power.

There are a few options for residency, including property-based investment visas and financial independence permits. Greece also has a special tax setup that allows some foreign retirees to pay a flat tax on retirement income. English is also widely spoken in many of the tourist areas and larger cities, making it easier to adjust.

Greece offers the Financially Independent Person (FIP) visa, which requires a specific monthly income from a passive source.

Ireland

As an English-speaking nation, Ireland is an easier transition for Americans than many other countries on this list. Additionally, the countries have had strong historical cultural ties, and citizenship is available to many with Irish ancestry.

Residency in Ireland is based on a stamp program, with each stamp defining the conditions of your stay, such as your right to work, study, or live in the country. The country offers public and private health insurance, like most European countries, so foreigners have options.

One of the main drawbacks for Ireland is housing costs, though mainly in Dublin, which is one of the more expensive cities in the category in Europe. However, on our list of international places to retire, Ireland ranks the highest on the Global Peace Index, which means it is one of the safest and most secure locations. It also has the second-highest expat community as a percentage of total population on our list.

Italy

Italy has a lot to offer. From the sea to beautiful landscapes, cities such as Rome and Florence are rich with history and great cuisine. Regions like Tuscany, Sicily, and Puglia are popular with foreigners.

The country has an elective residence visa for individuals who can show passive income and healthcare through the nation’s national health system. Living costs vary widely depending on the region. The north tends to be more expensive, while the south is more affordable.

Norway

Norway consistently ranks highly for quality of life, healthcare, and financial stability. The country is known for its excellent healthcare, which is publicly funded, and strong infrastructure.

Residency requirements are tougher than in southern Europe, with the need to demonstrate significant financial resources. One of the main factors is cost, as Norway is one of the most expensive countries in Europe. On our list of international retirement locations, it scores the lowest on the grocery index.

Portugal

Portugal is one of the most popular places for tourism amongst Americans, as well as one of the most considered places for retirement. The D7 visa allows people with passive income to apply for residency, and the financial threshold is below that of many other European countries.

The country has tax agreements with the U.S. to prevent double taxation, healthcare is accessible, and the country is relatively affordable, not to mention its wonderful weather and coasts on the Atlantic Ocean. English is widely spoken in tourist areas and the major cities. The country is also very affordable, ranking highly on our list for local purchasing power.

Spain

Spain is known for its beautiful weather, stunning cities, excellent food culture, and strong healthcare, all of which make it an attractive option for retirees. The country offers a non-lucrative visa, which allows for residency for those with a solid financial profile.

The cost of living is significantly lower than that of the U.S., and its healthcare system is consistently ranked as one of the best in the world.

Sweden

Sweden has great healthcare access, environmental quality, and public infrastructure. English is widely spoken throughout the country. Resident requirements usually include proof of financial stability and health insurance.

Taxes and the cost of living are high when compared to southern Europe, but the country’s strong public services, cleanliness and safety make it a popular choice. As with all the Nordic countries, the climate is a drawback. While summers are pleasant, winters are long and dark.

Best International Places to Retire Methodology

To create the list of winners above for our Best International Places to Retire, Investopedia’s researchers conducted competitive analysis and general research across the internet to identify 40 countries to conduct comprehensive research. We then broke down those countries into three regions: Europe, Asia Pacific, and the Americas.

Each country was evaluated based on many important overarching factors, including affordability, visas and benefits, and health care. Each of these categories had individual criteria, which we gathered data on. We gathered information from individual country government websites as well as intergovernmental organizations such as the World Health Organization (WHO), World Bank, and United Nations (UN).

After scoring each country against these criteria, we combined the results into an overall score out of 100. The Investopedia editorial staff then reviewed the top 40 countries to determine which were the best according to each region’s best overall scores.

Overall, the research process lasted from Jan. 30 to Feb. 9, 2026. We analyzed 38 total and 31 weighted criteria. During this process, we collected 1,520 unique data points.

Data Collection and Scoring

We scored every place on a 0 to 100 point scale so that all the data could be compared easily and fairly. Any criterion with only two possible outcomes was scored as either 0 or 100. Criteria that fell along a range were scored by setting the lowest value to 0 and the highest to 100. If a criterion had several possible outcomes, we assigned each one a specific value between 0 and 100. Any data point that was not disclosed received a score of 0.

Best International Places to Retire Evaluation Categories

Affordability

Affordability carries the most weight of any category in our best international places to retire rankings at 35% because it’s important that retirees have a clear picture of their cost of living in the country that they choose to retire to. While researching each country, we gathered data from places such as the Organization for Economic Co-operation and Development (OECD) as well as cost of living studies on Numbeo.

We looked at metrics such as the property tax rate, mortgage as a percentage of each country’s income, local purchasing power index, rent index, grocery index, and restaurant index. Each of these criteria helps paint a picture of how much each country costs and how far incomes go by measuring everyday expenses like groceries and dining out, as well as higher costs such as mortgage payments and housing affordability.

Visas and Benefits

Even though affordability is top-of-mind for retirees, being able to relocate to the country of their choice is also important. At 20% of the overall score, visas and retirement benefits reflect how straightforward it is for a retiree to stay in a country long term. We looked at official government websites to assess retirement and golden visas, as well as dual citizenship availability, visa-free duration, and whether or not each country offers specific benefits.

Healthcare

Another major factor in choosing the best place to retire abroad is a country’s health care system. We evaluated access to health care and weighted it at 16% of the overall score. To find a reliable way of measuring health care between countries, we used the WHO’s International Health Regulations core capacity scores as well as the density of doctors, nurses, and dentists in each country. We also evaluated OECD life expectancy data for another measure of each country’s overall population health.

Accessibility

Besides costs, visas, and health, we measured accessibility, which was 13% of the overall score, to determine how connected each country is to the U.S., as well as how restricted each country is. We analyzed FlightConnections data to find the number of airports with direct flights to the U.S. in each country. We also evaluated the World Bank’s Logistics Performance Index to determine how strong the overall infrastructure is.

Additionally, we incorporated data from the UN on the total expat population and the percentage of expats of the total population. We also scored EF’s English Proficiency Index to reflect the levels of how well each country reads, speaks, listens to, and writes English.

Quality of Life

Another factor that retirees choose countries to live in is based on how much they feel supported with safety and being comfortable. To assess this, we weighted quality of life 11% of the overall score. We incorporated metrics such as the Global Peace Index and U.S. Department of State Travel Advisory levels to help measure safety and security in each country.

We also evaluated natural disaster data from Our World In Data, which captures economic and mortality trends related to environmental disasters. Additionally, we measured the number of culturally significant historical sites from the UNESCO World Heritage List.

Governance

The stability of the political climate, as well as how well the government operates in each country, is also important in some retirement decisions, as it can help in creating a better quality of life. We weighted governance at 5% of the overall score and used the World Bank’s Worldwide Governance Indicators, which measure voice and accountability, political stability, regulatory quality, and control of corruption, to measure this.

The Bottom Line

Retirement in Europe can look very different depending on where you choose, with differences in climate, cuisine, English proficiency, costs, and more. Countries like Portugal, Spain, and Greece offer warmer climates and a relatively lower cost of living, while northern European countries, such as Sweden, Denmark, and Norway, come with more safety and better infrastructure. As a result, they’re more costly and also have more demanding climates, especially in winter.

The choice depends on the type of lifestyle you’re looking for. Some may prioritize climate while others prioritize healthcare and infrastructure. All the countries on our list, except for Austria, offer dual citizenship. For people willing to navigate the challenges that come with moving and living abroad, Europe can provide a new adventure for their non-working years.

Retirement can bring an influx of free time, a well-earned break after dealing with the demands of professional life. For some retirees, the arrival of retirement can be like a trip to a buffet of leisure activities; for others, it’s natural to see blank space on the calendar and wonder how to fill it.

Getting a sense of the income needed in retirement can help guide people to fill up their cups with what will bring them joy. Americans are actively working toward their retirement savings goals, with the average amount standing at $491,022. Some in their 60s are already retirement millionaires, with the average saver in that group holding over $1.1 million.

Retirement can also change daily spending habits, which can call back to another time people’s incomes took a sudden turn. Consumers saw a shift in spending during the pandemic, with early income gains contributing to more disposable income.1 Similarly, people in retirement who used to have daily expenses that are no longer relevant — commuting, professional apparel, daily coffee runs — can free up those dollars to spend elsewhere.

As retirees consider putting their dollars toward things they’d been putting off or saving up for, it’s a balance of making the fun — and funds — last.

1. Explore the world

Travel like there’s no tomorrow

The golden years may be time for travel to shine: Some 13% of Americans say they’re delaying big travel plans until they retire, according to Empower research.

If people haven’t already put together a “bucket list” of travel destinations, retirement is a great time to let the imagination run wild. The flexibility of being able to head off during a typical work week can unlock deals and leave wiggle room for longer stints like a road trip.

Empower findings show that 42% of people think traveling the world brings joy in retirement. Depending on money management and the power of compounding, older adults may have more to spend on trips than younger generations. From January to July this year, Baby Boomers spent a monthly average of $1,593 on travel, compared to Millennials, who spent $1,236.

Consider a new home

Without the commitment of an office commute or daily drop-offs, people may also want to set down new roots in retirement. Some could hold on to their empty-nest home — the U.S. had over 20 million of them in 2022 — though moving in retirement can help meet essential needs as priorities change. Decisions like whether to buy or rent a home, or if relocating to an active-adult community makes sense are a good place to start in the search for a forever home.

2. Give back to others

Volunteering time

Empower research found that 25% of Americans think volunteering makes for a happy retirement. With more free time during the work week, retirees can find opportunities at places like animal shelters, hospitals, and outreach organizations. Just as the wider community benefits, volunteering can give people a sense of purpose and a chance to dive further into their hobbies like art or leverage skills from a previous career. Building relationships during retirement through mentoring can inspire younger generations and bring fulfillment by sharing years of workforce knowledge.

Making space for caregiving

The cost of daycare has been a growing concern for working parents. Families can pay a median of $44,000 in the U.S. to send one child to daycare for five years, and in several metro areas, that price can jump to over $100,000.

Grandparents are often seen as an alternative to daycare, and 20% of people with grandchildren under 18 care for one or more of them at least once a week. That number grows as the daily commitment drops: Close to half of grandparents (49%) care for a grandchild at least once every few months.

The freedom of retirement can align with childcare needs, and caregiving can benefit both the grandparents and wider family. In general, grandparents who saw their grandkids on a more regular basis were less likely to identify feelings of isolation.

3. Focus on well-being

Healthcare expenses in retirement can often jump with age, considering the potential for more doctor’s visits, prescription drugs, and long-term care. In addition to possible demand going higher, healthcare itself is expected to cost more, too. It’s been projected that the average annual growth in healthcare expenditures (5.6%) will outpace that of the U.S. gross domestic product (4.3%) through 2032.

High blood pressure (hypertension) is the number one chronic health condition among older adults, affecting more than three in five Americans age 65 and above. Keeping an eye on weight, stress, and exercise levels can help prevent the need for initial treatment and fend off the wider risks of heart disease and stroke. In 2019, people with high blood pressure paid $2,759 more in medical costs compared with people without the condition.

Americans stand behind the importance of staying fit, with a whopping 70% of people believing that health equals wealth.

4. Add a furry friend

Whether a person has been a lifelong pet parent or thinking about getting one, pets can boost mood and emotional health among older adults in particular. Regular walks for Fido can bring some structure to a daily schedule in retirement and promote more outdoor time.

Americans spent $318 a month on pet expenses in 2024, according to Empower Personal Dashboard data, and retirees can see this as an investment in companionship. Empower findings show that nearly all pet owners (94%) consider their pets family members.

5. Socialize with family and friends

No need to squeeze in meetups during peak lunch and dinner hours when there’s time to spare — retirement can bring flexibility to visit loved ones at a more leisurely pace. With inflation and economic uncertainty affecting decisions on dining out, traffic to U.S. restaurants has dropped 1.7% so far in 2025. However, some restaurants like McDonald’s and IHOP offer senior discounts to sweeten the meal.

Keep spending within retirement budget

When it comes to a retirement timeline, many people focus on time well spent. Empower research reveals that 48% of Americans would rather have a longer retirement period with less money, compared with retiring later in life with more.

Making sure retirement savings can fulfill those dreams is important at any age. Retirees should account for ways they’ll receive income during retirement, such as through Social Security and required minimum distributions from savings plans.

As people start tapping their retirement savings, being honest with their spending patterns in retirement will be essential to update a budget and make sure they’re still on track for retiring well.

But should you trust artificial intelligence (AI) with your retirement planning? Here’s what financial experts say.

Why ChatGPT Can Miss the Bigger Financial Picture

First off, ChatGPT doesn’t use critical thinking. For that, you’ll need a human financial advisor.

“Remember that AI doesn’t currently think critically or form new ideas. It finds existing ideas and connects them,” said Robert Persichitte, a certified financial planner (CFP) with Delagify Financial. “This can be useful if you don’t have the time to do the research, but it won’t invent anything that someone hasn’t already written about. I like to think of it as a fancy Google.”

Because it lacks critical thinking, ChatGPT is unable to distinguish between good and bad ideas.

“Oftentimes, it lacks discernment. That means it will copy ideas from any source, including those that try to rip you off, offer outdated advice, or provide an incomplete picture,” Persichitte said.

Where AI Can Actually Help With Retirement Planning

But ChatGPT can be a way to familiarize yourself with financial concepts that you’ll need to understand as you retire.

“ChatGPT can be a great tool for explaining retirement strategies or helping you understand your options, but it’s not the whole toolbox. It can’t anticipate human behavior, emotion, or life’s curveballs,” said Stephan Shipe, a CFP and founder of Scholar Financial Advising.

Not All of ChatGPT’s Sources Are Created Equal

If using ChatGPT, make sure to review the sources ChatGPT is using to answer your retirement questions.

“Read through its cited sources and conduct research, just as you would if a stranger recommended investment advice,” Persichitte said.

Some more advanced AI models can do fairly comprehensive research, and they can provide links to recent news articles, so you’ll be able to see just where the information is coming from.

Why You Still Need a Human Financial Advisor

A wise follow-up step is to take the retirement advice from ChatGPT to a human financial advisor.

“There’s no question that AI can be a powerful tool for retirement planning. It’s a great resource for learning and working alongside your advisor. I’ve even had clients come in after using ChatGPT to prep questions or understand key concepts—which I think is fantastic,” said Luke Harder, a certified financial planner with Claro Advisors.

But relying solely on ChatGPT or another AI bot for retirement advice is not advised.

“AI isn’t perfect, and when it comes to retirement, the stakes are too high to rely on it blindly. It doesn’t know your full financial picture: your portfolio composition, tax situation, or how you personally handle market volatility,” Harder said.

You can input all of your investment portfolio and your tax information into ChatGPT, but that can be risky. The information you enter is often used as LLM training data and could be subject to hacking and data breaches.

A human advisor is also better equipped to understand your emotions if the market plunges and you’re tempted to sell your investments. They can advise you to hold off selling.

Financial advice, the only industry legally able to help with that fear, has spent years rewriting its business models around managing investments for an ongoing annual fee, making it expensive and largely the domain of the wealthy.

Super funds have been left to solve the problem for everyone else, and they have been loudly encouraged by the government to step up with a combination of digital advice and lifetime income products.

This week, two announcements signal that everyday people should start getting excited about doing retirement income differently.

Colonial First State has announced one of the biggest expansions of retirement solutions I have seen, bringing Challenger, BlackRock and Generation Life into a single integrated platform for advisers and their own unadvised members.

Its new lifetime income solutions will be offered via its super fund or its adviser platform, accessed through complex adviser-led advice or through low-cost intra-fund and retirement advice, largely digital but with real advisers supporting the journey.

On Monday, AMP will become the first major super fund to launch a fully branded, actively promoted direct-to-member lifetime retirement income product at real scale. What makes its model clever is that it works in two stages.

AMP Super Lifetime can be switched on years before retirement inside an existing AMP Super account at no extra cost, using government deeming rules to begin building a lower concessional balance for Centrelink purposes from the day you activate it. The AMP Lifetime Retirement Income launching on Monday then converts that into an income for life.
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Most lifetime income products ask you to decide at retirement. AMP’s model lets you start the clock years earlier, working in the background to set your super’s Centrelink asset value baseline lower and potentially unlocking higher age pension payments at retirement.

Other funds are already in the space or moving fast. UniSuper offers both a simple CPI-indexed product and Challenger’s Lifetime Income solution, funnelling members towards them through its advisers and digital advice platform.

Hostplus offers its CPIplus product, a limited CPI-plus income option for pension members. MLC has launched Retirement Boost for advisers and expects to follow with a direct-to-member solution later this year.

AustralianSuper, NGS and Brighter Super have all announced they will go live with lifetime income products this year, alongside the digital advice capability needed to help members understand and buy them. ART, the country’s second-largest fund, has had a lifetime pension available for some time but does not yet promote it widely.

Within 12 months, people approaching retirement will have many new options, most supported by intra-fund advice, one-off advice or digital funnels, or all three, and not all requiring an expensive ongoing adviser.

If you are within 10 years of retirement, it is time to understand what is on its way and how it is going to change the way Australians turn their super into an income that lasts 30 years, maximises their age pension, and lets them enjoy what they have saved.

What is a lifetime income stream?

Imagine if your super fund paid you a regular, guaranteed income for the rest of your life after you stopped working, much like your wage when you were working. Not a lump sum you have to carefully ration across decades you cannot predict, but a reliable income that arrives, no matter how long you live, what sharemarkets do or how many birthdays you rack up.

These products have existed in various forms for a long time, but the older versions, traditional annuities, were clunky and inflexible. You would put money in, receive a fixed payment out, and if your circumstances changed, you died younger than expected, or you needed access to the funds, tough luck. Not surprisingly, many people gave them a wide berth.

The new generation is entirely different. They are redesigned for modern retirement, in which people routinely live into their 80s and 90s and super and the age pension need to work together as a system.

These newer investment-linked products offer a guaranteed income for life, no matter how long you live; market-linked bonuses in good years so your income is not frozen in time; flexibility to access capital if something big and unexpected comes up; and death benefits, so your family is not left with nothing if you go earlier than expected.

Most people use them as one reliable layer of retirement income alongside an account-based pension and the age pension. Think of it as a floor of guaranteed income underneath everything else, so you can spend more freely from the rest of your money, potentially at higher growth levels, without constantly worrying about that floor giving way.

Two types exist. CPI-indexed products pay a fixed income rising each year with inflation. They are simple and predictable, but your income will not grow beyond CPI. Investment-linked products pay a base income plus annual bonuses tied to investment performance, with downside protection so income cannot fall below a floor. They are more complex, but they give you exposure to market growth while still ensuring income for life. For people working with an adviser on the more sophisticated platform-based versions, there is also real flexibility in how the underlying assets are invested and managed.

One feature both types share deserves special attention. When you put money into an eligible lifetime income product, Centrelink counts only 60 per cent of it as an asset for the age pension assets test for at least five years, or until you turn 85.

After that, it drops to 30 per cent. Put in $200,000 and Centrelink treats it as $120,000. A home owner couple can have up to $1,085,000 in combined assessable assets and still receive a part pension.

Many couples who assume the pension has nothing to do with them have simply never checked. AMP data shows members using these products spend 60 per cent more in retirement than those without one. Not because they have more money, but because they finally feel safe spending what they have.

Who are they useful for?

Lifetime income streams are not for everyone, but they help more people than most realise, breaking into two groups.

The first includes anyone eligible for less than the full age pension. A home owner couple starts losing the full pension once combined assessable assets exceed $481,500, losing it entirely at $1,085,000. A single home owner starts losing it at $321,500 and loses it entirely at $722,000.

That is a very wide band. Moving a portion of super into a qualifying product reduces what Centrelink counts by 40 per cent, unlocking pension entitlements that were not there before. You get the lifetime income from the product, plus more age pension.

The second group includes people above the pension threshold, up to about $1.5 million. Even without the Centrelink benefit, a guaranteed income floor changes how retirement feels. A lifetime income stream answers the “is it enough?” question in a way a spreadsheet never quite can.

They are less useful for people already on the full pension regardless, or those with huge balances focused on maximising what they leave behind.

Until recently, most of these products were accessible only through a financial adviser, which put them out of reach for many ordinary Australians. That is changing. Super funds are increasingly offering lifetime income products directly to members, with digital advice journeys, one-off advice options and human support built in.

If you are within 10 years of retirement, start with your own super fund. Ask whether it offers a lifetime income product, how you access it, and what it costs.

If it doesn’t offer one yet, ask when it plans to. And if you have a financial adviser, ask them whether they have considered one for you. If they have not, that conversation is well overdue.

Retirement planning can be daunting for anyone. For solo agers, facing those challenges without a spouse or adult children to turn to for financial, emotional or physical support can make it even more complex.

According to a 2023 AARP report, about one-third of people age 50 and older live alone and either don’t have children, are estranged from their children, or can’t depend on their children or other family members for help.

But solo aging doesn’t have to mean retirement panic. A detailed financial plan that’s tailored to your goals can help you pave a path toward a rock-solid retirement, says Jay Zigmont, founder of Childfree Wealth, a financial planning firm in Mount Juliet, Tennessee, that focuses on clients who don’t have, or plan to have, children.

Taking these steps during your working years can help you reach retirement with confidence that your savings will last if you expect to be largely on your own.

Build a strong financial foundation

If you lack a second income stream from a spouse, try to stockpile more emergency savings — 12 to 18 months’ worth of living expenses instead of the typical three to six months’ worth that many financial planners recommend. This extra cushion can help you prepare for unforeseen bills, says Patrick Huey, founder of Victory Independent Planning, a financial advisory firm in Naples, Florida, and Portland, Oregon.

It’s also important to steadily build up your retirement accounts through automated savings and increase your contributions when you can, such as through catch-up contributions. At a minimum, take advantage of any employer 401(k) match. It’s free money.

If you’re eligible for a health savings account (HSA), you can set aside tax-free funds to cover qualified medical expenses, such as health insurance deductibles, prescription drugs and hearing aids in your retirement years.

Paying down debt while you still have an income is another way to reduce financial strain later.

Envision your retirement lifestyle

Picture your retirement and consider “what you are going to do, who you are going to be with, how you are going to spend your time and how you are going to create purpose and meaning in your life,” says Sara Zeff Geber, author of Essential Retirement Planning for Solo Agers.

For many solo agers, retirement is centered around hobbies, travel, spending time with extended family or volunteering. Envisioning yours can help you define the life you want to lead after you stop working and figure out how you’ll pay for it. “You need to have a plan for what you’re retiring to rather than what you’re retiring from,” Zigmont says.

Decide if you want to leave money to others

For solo agers, deciding whether to leave money to relatives, friends or charitable organizations when you die can help shape your retirement timeline. It can also help you craft an estate plan that ensures your assets pass to your intended heirs.

You should also check all your financial accounts to make sure your beneficiary selections are up to date. If you’re divorced, for example, your 401(k) plan might go to your ex-spouse if they’re still the beneficiary on the account.

Pay close attention to long-term care

A majority of Americans reaching age 65 today will need significant long-term care during their remaining years, according to federal health data, but that probability is often overlooked in retirement planning, says Geber. For solo agers who lack family support, factoring in the cost of long-term care is essential.

“Everybody thinks that they’re going to spend a wonderful day on the golf course or the pickleball court, have a great dinner and then die in their sleep at night,” she says, but for many people, retirement is “a rockier, more expensive road.”

A long-term care plan may entail saving to self-fund care or purchasing long-term care insurance. If your employer offers long-term care benefits, take the time to learn more about them. Nearly a quarter of benefits-eligible workers say their company offers long-term care insurance, but only 9 percent enroll, according to a 2024 survey by the Employee Benefit Research Institute.

Get your legal documents in order

Some solo agers struggle to decide whom to appoint as their health care surrogate or financial power of attorney. But without these designations, hospitals, courts or government agencies might make medical or financial decisions on your behalf, and their choices may not reflect your wishes.

Consider having trusted friends or extended family members take on these roles, says Charles Sachs, chief investment officer at Imperio Wealth Advisors in Coral Gables, Florida. If you don’t have people you want to designate, you could hire a professional fiduciary or trustees to serve in these roles.

Here are four key estate planning documents for solo agers:

Medical or health care power of attorney. This designation, also known as a health care surrogate or health care proxy, is the person whom you want to make medical decisions for you if you are unable to do so.

Living will. Like a medical power of attorney, this document is usually part of an advance directive that spells out your wishes for medical care if you can’t communicate them yourself, such as whether you want to receive life-sustaining treatments.

Financial power of attorney. This enables someone to handle money matters, like paying bills or dealing with insurers, if you cannot.

Last will and testament. This determines who will inherit your assets when you die. It also lets you name an executor to handle your estate; without a will, a judge will appoint an administrator to determine who gets your assets, such as a next of kin. Distribution rules vary from state to state.

“Pay yourself first” means saving a portion of your paycheck before paying other expenses. This approach prioritizes long-term financial goals, such as retirement and an emergency fund for unexpected costs. Saving can be challenging for many people, especially when money is tight, but small, regular contributions can make a difference over time, creating more financial security.

Effective Strategies to Increase Your Savings

Many personal finance professionals and retirement planners tout the “pay yourself first” method as an effective way to ensure you contribute to savings month after month. Regular savings contributions can go a long way toward building a long-term nest egg.

If you are using the “pay yourself first” method of personal finance, you may opt to put your money in a range of savings vehicles, depending on your financial objectives. The phrase can refer to earmarking a certain percentage of your paycheck to be contributed to your retirement accounts, such as a 401(k) or an individual retirement account (IRA). Alternatively, you may put the funds in a cash savings account.

Paying yourself first means saving for retirement, building an emergency fund, or saving for long-term goals like a home.

What Percentage of Americans Are Saving Money?

In 2023, over a third (37%) of Americans could not cover a $400 emergency in cash or its equivalent, a Federal Reserve report found. This is the same as it was in 2022, but a bit higher than it was in 2021 (32%). In 2023, a similar percentage of people believed their retirement savings were on track (34%), which was about the same in 2022 (31%) but lower than it was in 2021 (40%).

According to Bankrate’s Annual Emergency Savings Report, over 27% of respondents had no emergency savings at all, and about the same percentage (29%) had some savings, but less than 3 months’ worth of living expenses. 16% had 3 to 5 months’ worth of living expenses, and 28% had 6 months’ worth of living expenses or more. The breakdown by age reveals that Baby Boomers had far more emergency savings than other generations: almost half (46%) of Baby Boomers had 6 months’ worth of living expenses or more, compared to 25% of Gen X, 20% of Millennials, and 11% of Gen Z.

What Is the Average Retirement Savings by Income?

The Federal Reserve Board found that in surveys conducted from 2016 to 2022, the average retirement savings among everyone who responded (35 years old to 64 years old) was about $331,000.

The number of families who participated in retirement plans increased to the highest level since 2010.

For those with incomes in the bottom half, the average savings was about $55,000. For those with mid-to-high incomes, the average savings was about $227,000. For those in the top 10%, the average savings was about $913,000.

Can You Use a Roth IRA As an Emergency Fund?

Some people may avoid contributing to tax-advantaged retirement savings plans because they worry about having no money for emergencies. It’s important to know, however, that the contributions you set aside for retirement in a Roth IRA are, in fact, accessible if needed. Though financial planners caution that this should only be done in emergencies—because withdrawals take money away from your future—the fact is that you can withdraw however much you contributed to the account because you already paid taxes on those funds. These withdrawals are tax and penalty-free.

The rules for earnings are different, however. The earnings in the account (the money your contributions made) are not accessible unless you have had the account for over five years. And if you’re younger than age 59 ½, it’s considered an early withdrawal, and you’ll pay a 10% tax penalty to the Internal Revenue Service (IRS).

There is an exception to this: you can withdraw earnings tax and penalty-free if you make what’s called a qualified withdrawal. For it to be a qualified withdrawal, you must have had the account for over five years, and the withdrawal must either be due to a disability, for a first-time home purchase (or building / rebuilding a first home), up to $10,000, or be for a beneficiary after your death.

And if you’re willing to pay taxes on the earnings (though you wouldn’t if you wait until you’re 59 ½, as long as you’ve had the account for five years), there are several exceptions to the 10% penalty, including withdrawals for higher education expenses or for the birth of a child.

The Bottom Line

“Pay yourself first” means that when you get paid, you should put money away in savings before you spend it on anything else, such as your regular monthly living expenses or discretionary purchases. By following this strategy, you’ll be able to build savings that can help secure your future, and create a cushion for financial emergencies. However, for many people, this strategy can be difficult. But don’t worry. Aim to save as much as you can, whenever you can, to build your savings over time. Make your savings a priority whenever possible.

Guardian Life Insurance’s “14th Annual Workplace Benefits” study reveals that the top two retirement regrets among Americans in 2025 were not saving enough and not starting to save earlier. These regrets don’t just impact bank accounts; they also adversely affect emotional health, life satisfaction, and freedom in retirement.

Retirees who regretted their financial preparation were three times more likely to report low emotional well-being than those who didn’t. The takeaway from this is clear: much of happiness in retirement comes from saving more and starting to save long before retirement starts.

Start Saving Earlier: The Compounding Advantage

Guardian’s data shows that two in five workers and one in five retirees regret how they prepared financially. One of the best ways to avoid that regret is to start saving earlier.

Compounding interest rewards those who invest for long periods of time. The earlier you start saving and investing, the more time your money has to compound and grow. A 25-year-old who invests $200 a month in a retirement account that earns 6% annually will have about $400,000 by the time they’re 65. If the same person started at 35, they’d have roughly half that. And if someone starts at 45, they’d have $93,000.

That extra time matters even more when you consider that many people retire sooner than expected. Guardian found that 70% of retirees left work earlier than planned due to something out of their control, with a third saying it was because of health issues or job loss. You may not get those extra years to save that you assumed you would.

The Federal Reserve’s “Economic Well-Being of U.S. Households in 2024″ report echoed this sentiment, with just 35% of non-retired adults viewing their retirement savings plan as on track. People already feel behind, and the longer you wait, the harder it can be to catch up.

Starting early isn’t about perfection or large contributions; it’s about momentum. Even small, automatic deposits into a 401(k) or IRA build over time. And if your employer offers an employer match, saving at least the amount needed for the match makes a big difference since it’s basically free money.

Moreover, power isn’t just in the growth of your account value, it’s in the habit of saving. Every contribution makes the next one easier. The people who start saving early don’t regret it; those who don’t, almost always do.

Save More: Small Increases Make a Big Difference

The other retirement regret is not saving enough. That is an increasingly common issue as life expectancy rises and fewer people have traditional pensions. The U.S. Census Bureau estimates that the average life expectancy in 2060 will be almost 86.

Combine that with the U.S. Bureau of Labor Statistics’s finding that only 15% of private-sector workers have access to a traditional pension plan, and you’ll understand how important personal savings (401(k)s, IRAs, brokerage accounts) now are as sources of retirement income.

With longer life expectancy come higher healthcare costs. Guardian reports that 65-year-olds retiring in 2025 can expect to pay $172,000 on healthcare in retirement, with the average retiree spending 30% of their Social Security income on healthcare. That leaves little room for living well, traveling, helping family, or emergencies.

For example, increasing your savings rate by 1% each year may seem small, but it will have a large impact on your income in the future without reducing the quality of your life in the present.

The Bottom Line

The two biggest regrets about retirement usually are waiting too long to start saving and saving too little. Both are completely avoidable. Starting early and saving steadily can make a big difference over time, helping you feel more secure and less stressed about the future. A little discipline and consistency now can go a long way toward preventing “I wish I had” moments later on.

Oftentimes, thinking of retirement finances can be overwhelming because there is so much involved. Bright Wealth Management encourages people to have an integrated plan.

Whether you have a professional to help with your finances or not, having investments, taxes, estate planning and income strategies all under one umbrella helps mitigate risks and underlying fees.

Bright Wealth Management brings all those areas together, and they have a free service to get a second look at your finances and the trajectory toward your retirement.

“I would suggest just getting a second opinion, and you’re going to be armed with the knowledge and the wisdom, whether you want to move forward or not,” founder and president of Bright Wealth Management Matt Dages said. “You’re going to leave with a complimentary written financial plan, and you’re going to know exactly what you need to do to make that dream a reality.”

3 of Bright Wealth Management’s tips to optimize retirement savings

1. Tax and estate planning

The first part is having an estate plan. Some people don’t have one and don’t even know it.

Many factors, such as multiple residences, differing legal requirements and family dynamics can affect how assets are distributed. Knowing those answers will help minimize tax implications and legal challenges.

One of the most crucial aspects of tax planning is knowing the implications of withdrawing funds from tax-deferred accounts.

401(k)s and IRAs have required minimum distributions and other withdrawals that will push individuals into higher tax brackets if not followed correctly. Methods like Roth conversions and income timing can reduce individuals’ risk.

Another strategy to maintain control and reduce risk is preparing for higher tax rates. That way, you are proactively planning rather than being reactive when rates go above what’s expected and setting yourself up better long-term.

“Risk mitigation is the name of the game. We don’t want to wait until after a market crash to then lick our wounds,” Dages said. “We want to have a balanced, diversified portfolio, and we want to help people strategize, to say, ‘Hey, based on where you’re at in your life, your age and your timeline for retirement, or your overall goals in life and where you are looking to achieve, here’s how we can go after that.’”

That leads to the next tip.

2. Income planning

The key to income planning is having various streams of income so that essentials are covered despite how the stock market is performing.

“Many people, their income certainty is just social security. And the rest of it relies on market dependence, market success,” Dages said. “So what we want to do is we really want to know that your core expenses are covered without relying on the market. We want to give you that income certainty.”

Social security is a significant component of retirement planning, but having additional income sources, like pensions, annuities and other guaranteed income solutions, diversifies your portfolio so you don’t get tense every time the market fluctuates.

It creates balance, dependable income sources and creates confidence in your retirement.

Another important aspect is planning for a longer lifespan. This requires careful consideration of how income will be sustained over decades, and avoiding retiring during a market downturn.

If individuals separate their assets into different horizons and strategically manage withdrawals, the income will be protected and have stability over time.

3. Navigating hidden costs

One of the most substantial hidden or “stealth” costs for individuals is healthcare expenses. People often overestimate what is covered by Medicare, and those expenses that aren’t covered can add up quickly, depleting savings.

Family-related responsibilities are another major expense people don’t often account for, such as supporting adult children, contributing to grandchildren’s education or managing end-of-life costs.

These expenses can add up unexpectedly and fast, making it very important to build flexibility and contingency reserves.

While those expenses are more unexpected, inflation is easier to predict. But it still hits people as an underestimated challenge. Rising costs decrease purchasing power, and that can bring financial stress to individuals relying on pensions with fixed income.

One way to combat inflation is by utilizing growth-oriented investments and adjusting projections to account for it. This strategy can ensure long-term financial security despite economic changes.

Retirement planning is no walk in the park. It’s complicated. No surprise that many of us make mistakes that can turn retirement dreams into last-minute panic.

As retirement nears, there are tons of things to think about, like when to take Social Security, how much to take out of your 401(k), creating a spending plan you can stick to and investing your retirement savings. And like the butterfly effect, tiny decisions now can lead to huge, life-altering consequences down the road.

That’s why it’s crazy to go it alone.

A Northwestern Mutual study found that 71% of U.S. adults admit their financial planning needs improvement. However, only 29% of Americans work with a financial adviser.

The value of working with a financial adviser varies by person, but according to an independent study, people who work with a financial adviser feel more at ease about their finances and could end up with about 15% more money to spend in retirement.

But who can you trust for guidance? In the past, you’d have to turn to a stranger and take your chances. But that was then.

These days there are no-cost online services, such as SmartAsset, that make discovering your ideal financial adviser a snap. You fill out a short questionnaire, then get matched with up to three local fiduciary financial advisers, each legally bound to work in your best interests. The process only takes a few minutes, and in many cases you can be connected instantly with an expert for a free retirement consultation.

Definitely something you should do, especially if your savings are $100,000 or more. Meanwhile, here are some of the biggest retirement mistakes — and how to avoid them.

1. Failing to plan is planning to fail

A happy retirement is one that’s stress-free. And how do you eliminate stress? Simple: by having a plan.

When you want to go somewhere you’ve never been, do you get in your car, drive around aimlessly and hope to eventually arrive? No. First, you decide where you want to go. Then you use a map to plot the shortest path to get there.

A financial plan is a map plotting the shortest path to reach your retirement goals. Deciding what you’re going to do, where you’re going to do it, how much it’s going to cost and where the money will come from: all parts of your plan. But what if your plans change as you approach retirement? That’s OK. It’s your plan; you’re welcome to change it.

Does making a plan sound complicated? It is. The investments you choose, income taxes, and your target retirement dates are just a few of the tons of variables you’ll have to consider. That’s why if there’s one time in your life you could use professional advice, this is it. Hiring an experienced, expert guide in the form of a qualified financial planner will keep you from getting lost and get you to your destination.

2. Putting off till tomorrow what you should have started yesterday

According to a recent survey by Bankrate.com, the biggest financial regret is not saving enough for retirement. And why don’t Americans save enough? Because they put it off, saying some variation of, “I’ll wait till I have more money”, or “I’ll start when I get closer to retirement.”

The thing is, the longer you wait, the harder it will be. In other words, starting small but sooner is better than starting large but later.

If you’re behind on retirement savings, a financial adviser may be able to help you catch up and figure out how much you’ll need to invest to meet your goals. In addition to investing for your future, a financial adviser can offer guidance on budgeting and paying off debt.

And while there’s obviously no guarantee, if an adviser can increase your returns, it could make a big difference. Consider this: if you save $500 a month for 40 years and earn an average annual return of 5%, you’ll end up with nearly $725,000. Double that return to 10%, and you’ll retire with almost $2.7 million. That’s a life-changing difference.

Again, there’s no guarantee a pro is going to do better than you could on your own. But the point is that, over time, tiny things can make a huge difference in your life.

3. Retiring too soon or not soon enough

If you are thinking about retiring soon, you may dream of quitting your job and traveling the world. However, before you call it quits, there are a number of reasons you may want to think things over. First, you may live longer than you expect, you may run into unforeseen health issues or face tough financial times that force you to cut back.

That’s not to say you shouldn’t retire early, but if that’s your plan, run various scenarios to make sure your savings are going to cover your expenses during retirement and offer a lifetime of income.

Same with not retiring soon enough. If you’re unsure your savings will be adequate, you’ll worry and as a result, perhaps work longer than you have to. You’re much better off knowing what you have and what you’ll need. Replace doubt with certainty and only work as long as you want to.

4. Hiring the wrong financial adviser

Whether it’s building wealth or securing a comfortable retirement, hiring a financial adviser is a major life decision. Unfortunately, not all are created equal. Hire the wrong adviser and you could end up worse off than when you started.

When it’s time to find someone to assist you, always meet with several planners. Talk to them, ask a similar list of questions and assess their qualifications and advice before making a decision. Ask how they get paid and how long they’ve been in the business. Take your time. And always deal with a fiduciary: a planner who’s legally bound to put your interests above their own.

These days, finding a financial adviser you know was well-vetted doesn’t have to be frustrating or difficult. Start your search with this free financial adviser matching tool, which matches you with up to three qualified financial advisers in under five minutes. Every adviser is vetted and is a fiduciary.

5. Taking too much risk, or not enough

Risk is a funny thing. Take too much and you can lose your savings. But take too little and you can lose purchasing power to inflation.

The money you retire with is money that can’t be replaced. That’s why we lean toward low-risk, low-return investments as we age. But as inflation erodes the value of money, that seemingly safe nest-egg drops in value in terms of what it can buy. Bottom line? Often, taking no risk presents risks of its own.

Investing, both before and after retirement, is about balance: harnessing investments designed to keep your income flowing, inflation hedged and risks manageable. Your strategy will require safe, guaranteed-income investments, as well as some exposure to stocks and other inflation-protection investments.

According to the most recent figures from the U.S. Federal Reserve’s Survey of Consumer Finances, only about 2.5% of all Americans actually have $1 million or more saved in their retirement accounts.

Among actual retirees, only 3.2% have reached the $1 million threshold.

The Million-Dollar Reality Check

According to Fed data, just over half of Americans (54.3%) have retirement accounts, period, and of those, less than one in 20 (4.7%) have reached the $1 million mark. That figure rises to 18% of U.S. households if you include all assets, such as real estate and other savings.

What Most Retirees Actually Have

The median retirement savings for households led by someone between the ages of 65 and 74 years old is $200,000. For those 75 and older, it’s just $130,000.

Why So Few Reach $1 Million

Several factors explain why million-dollar retirement accounts are rare. Income plays the most obvious role, with high-income households typically saving an average of $769,000 compared with just $79,500 for middle-income households.

Education makes a dramatic difference, too. A typical college graduate has three times the median retirement savings as someone who graduated from high school, but not college ($141,700 vs. $44,000, respectively).

Homeownership also significantly impacts retirement savings, with homeowners averaging $303,000 in retirement accounts, more than 2.5 times as much as renters.

Nearly 500K Americans Are 401(k) Millionaires

Despite the overall percentages, there’s been remarkable growth at the top end. Fidelity Investments reports that the number of “401(k) millionaires” reached a record of about 497,000 Americans as of 2024, with nearly 399,000 also having at least $1 million in individual retirement accounts (IRAs)—two groups that often overlap.

The key to reaching these amounts is starting early and contributing consistently over many years—to get to a million dollars, it takes an average of about 27 years, according to Fidelity.

“I’ve seen clients start with six figures of debt and very little assets and eventually reach $500,000 (and more) of net financial wealth,” David Tenerelli, a certified financial planner at Values Added Financial Planning, told Investopedia. That’s easier to reach if you’re a high-income professional, he noted. “But high income is not the only way to financial prosperity; living frugally, investing wisely, and optimizing for taxes are all important ingredients for anyone to accumulate financial wealth.”

The Bottom Line

Having a million dollars in your account on the day of your retirement remains an elusive goal for the vast majority of Americans, with fewer than one in 30 achieving it. In fact, about three-fifths of Americans are afraid they’ll outlive their savings.

For those who are still working, the message is clear: start saving early, contribute consistently, and consider reaching $1 million as being part of a very exclusive club.