Working longer—a possibility, not a solution

Your first thought might be: “I’ll just postpone retirement.” Unfortunately, even if you love what you do, working longer may not be a viable long-term strategy. The risk of early retirement is real—62% of retirees left the workforce sooner than they expected, either by choice or circumstances, and the average age was 59.² So what else can you do to prepare for a retirement that could possibly last more than 20, 30, or even 40 years?

Eight steps to help make your retirement savings last

Consider these eight steps. The first four are actions you can take now to help build your retirement savings. The last four are strategies for when you’re closer to retirement to help you make the most of your money.

1 Picture your future 

Start by imagining the kind of retirement you want—even if it’s way down the road. Do you plan to travel? Start a business? Volunteer? You don't have to have a detailed plan, just a rough sketch of your future adventures to help you complete the next step.

2 Estimate your future expenses

Using your sketch, scope out how much your decades-long retirement may cost. Looking at your current expenses, think about:

• The ones that will carry over into retirement—Utility and grocery bills, insurance premiums, and home/car repairs
• Those that may go away—Commuting and other work-related expenses
• New ones that may pop up—Cost for your different activities as well as long-term care 

You can use your total projected expenses to set your retirement savings goal. If you’re not sure how to work out your projection, don't worry; your retirement plan provider may offer tools that can help. Or you may be able to find one online. A financial professional can also be a great resource.   

3 Save as much as you can now

To help reach this goal, make sure you’re taking advantage of your employer’s retirement plan, if offered. You may also want to consider setting up a traditional or Roth IRA. The sooner you start saving, the more time your money has to potentially grow. That’s because the money in your retirement account or IRA may generate earnings, which go back into your account—and those earnings can generate more earnings. We call this compounding, and while it’s not guaranteed, it can significantly boost your savings over time. You don’t have to start big; you’d be surprised at how even small amounts can add up. The key is to choose an amount that fits your budget and save consistently to help you make steady progress on your goal.  

This illustration is hypothetical and does not represent any specific investment or imply any guaranteed rate of return. It assumes a $0 starting balance, $200 per month in contributions, and a 6% annual rate of return. There is no guarantee that the results shown will be achieved or maintained over any time period. This example assumes no withdrawals; does not take into account fees associated with investing, which, if included, would reduce the account balance; and assumes reinvestment of earnings. Taxes are due at withdrawal. Individual circumstances may vary.

4 Invest with your future in mind

The way you invest your savings can affect how much money you’ll have in retirement and how long it may last. Consider keeping a portion in stocks and other investments that have the potential to grow to help protect against inflation risk (rising prices) and longevity risk (outliving your money). This is another step where a financial professional can be a great resource. Your retirement plan may also offer investments that can help simplify your decision. 

5 Plan your retirement spending

As retirement approaches, keep saving—but also start thinking about how you’ll support your lifestyle over the decades to come. Creating a retirement budget can help you see if your income from Social Security, retirement accounts, and other sources will be enough to cover your expenses or if adjustments may be needed.

6 Plan for your future mental and physical well-being

Make sure your retirement budget includes healthcare and long-term care. They’re two of the biggest expenses you may face as you age, and Medicare won’t cover everything.³ Fifty-two percent of people aged 65 and older may need help with daily activities, with care lasting 90 days or longer.⁴ To help manage these costs, consider setting aside some of your savings for just healthcare or using a health savings account if you have a high-deductible health plan. You may also want to check into long-term care insurance to see if it makes sense for you.

7 Look for ways to boost your retirement income

If your retirement budget reveals a gap, think about how you can fill it. Consider trimming some expenses or upping your contributions to your retirement plan or IRA. You might also consider possible ways to earn extra cash such as renting out a room, working part time, or starting a side gig. Just be sure to check how these moves might affect your lifestyle, Social Security, and taxes before you begin.

8 Map out your withdrawals

Finally, consider creating a plan (drawdown strategy) for which accounts you’ll tap first and how much you’ll withdraw each year.⁵ Developing a drawdown strategy can make a big difference in how long your savings last and how much you pay in taxes. A financial professional can help with this step, too.

Get ready today to hit the big 100—and beyond

Your grandparents or parents probably never dreamed of living to 100, let alone past it, but this could be your reality. Take steps today to help you enjoy a long, financially comfortable retirement tomorrow.  

1  “U.S. centenarian population is projected to quadruple over the next 30 years,” Pew Research Center, 1/9/24. 2 2024 John Hancock financial resilience and longevity reports, a commissioned study. 3 “Projected Savings Medicare Beneficiaries Need for Health Expenses Continued to Rise in 2024,” EBRI, 3/6/25. 4 “Do Households Have A Good Sense of Their Long-Term Care Risks,” Center for Retirement Research at Boston College, February 2025. 5 Ordinary income taxes are due on withdrawal. Withdrawals before the age of 59½ may be subject to an early distribution penalty of 10%.