6 essential retirement tips everyone can use

[UNITED STATES] As retirement planning becomes increasingly important, many individuals seek the expertise of financial planners to safeguard their future. While high-net-worth individuals often have access to exclusive financial strategies, several core retirement tips can benefit anyone, regardless of their wealth. Financial planners emphasize practical, universally applicable advice that can help secure financial stability for the long term. Here are six essential retirement tips that wealthy clients use—ones that everyone can implement to enhance their financial future.

1. Start Saving Early – Time is Your Best Ally

One of the most common pieces of advice given by financial planners is to start saving for retirement as early as possible. While the wealthy can afford to contribute larger sums to their retirement accounts, the principle remains the same for anyone: the earlier you start, the more you benefit from compound interest.

Wealthy individuals may be able to invest in high-performing assets, but even modest contributions made early on can accumulate significantly over time. Financial planners recommend using tax-advantaged accounts like 401(k)s, IRAs, or Roth IRAs to maximize growth potential, regardless of the amount saved.

Pro Tip: Even small, consistent contributions—such as setting aside 10-15% of your income—can make a big difference over decades.

2. Diversify Your Investment Portfolio

Wealthy individuals often have diverse portfolios that spread risk across multiple asset classes, including stocks, bonds, real estate, and alternative investments. Financial planners suggest that this strategy isn’t just for the wealthy—it’s crucial for everyone, as diversification reduces the impact of any one investment performing poorly.

An effective investment strategy involves balancing risk with reward, with an emphasis on investments that match your risk tolerance and retirement timeline. For example, younger individuals with more time to save may choose more aggressive investments, while those closer to retirement may opt for a more conservative approach.

Pro Tip: A well-diversified portfolio should include a mix of domestic and international stocks, bonds, and possibly other alternative assets like real estate or commodities.

3. Plan for Healthcare Costs

Healthcare expenses are a significant concern in retirement, particularly for those who may not have employer-sponsored healthcare benefits. Financial planners emphasize the importance of planning for these costs well in advance, as healthcare can easily become a major expense in retirement years.

For those without access to employer health insurance in retirement, Health Savings Accounts (HSAs) are an excellent tool. These accounts allow individuals to save pre-tax dollars for medical expenses, with the added benefit of growing tax-free.

Pro Tip: For long-term planning, estimate your healthcare costs by factoring in premiums, deductibles, out-of-pocket expenses, and potential long-term care needs.

4. Create a Retirement Income Strategy

Rather than simply accumulating savings, wealthy clients often focus on developing a sustainable income strategy to ensure they don’t outlive their savings. Financial planners advise creating a withdrawal strategy that accounts for taxes, market volatility, and spending needs.

For most, the idea of drawing down from retirement savings can feel daunting. To mitigate the risk of depleting funds too early, planners recommend the 4% rule—a guideline that suggests retirees can withdraw 4% of their portfolio’s value each year without running out of money in a 30-year retirement. While this is a general rule, it should be adjusted based on personal financial situations, risk tolerance, and market conditions.

Pro Tip: Consider setting up multiple streams of income—such as rental properties, part-time work, or annuities—to supplement your retirement savings and reduce reliance on withdrawals.

5. Stay Tax-Smart with Retirement Accounts

Tax planning is a critical part of retirement strategy for wealthy individuals, and it’s a principle that can benefit anyone. Contributing to tax-deferred accounts like 401(k)s or IRAs allows individuals to reduce their taxable income in the present while growing their savings for the future.

As retirement approaches, financial planners also advise shifting from tax-deferred accounts to tax-free accounts like Roth IRAs. This shift can help reduce the tax burden on withdrawals during retirement. While tax laws vary by country, being proactive about tax-efficient strategies can significantly improve your retirement outlook.

Pro Tip: Contribute to retirement accounts before the tax deadline to maximize your annual contributions and lower your tax burden for the current year.

6. Revisit Your Plan Regularly

Retirement planning isn’t a one-time task; it’s an ongoing process that requires regular check-ins. Financial planners encourage their clients to review their financial plans annually—or more often if there are significant life changes (such as a job change, marriage, or a move).

For wealthy clients, this might mean adjusting for changes in income or market conditions. For others, it could involve recalculating retirement needs based on updated goals, expenses, or expected longevity. Regularly revising your retirement plan helps ensure you stay on track and adjust to changing circumstances.

Pro Tip: Consider working with a financial advisor to review your retirement plan at least once a year to make adjustments as needed.

Final Thoughts

While some retirement strategies might seem exclusive to the wealthy, the truth is that anyone can benefit from the tips financial planners provide to their high-net-worth clients. Starting early, diversifying investments, planning for healthcare, developing a sustainable income strategy, optimizing for taxes, and revisiting your plan regularly are strategies that transcend income levels.

By taking these steps, anyone—regardless of their financial situation—can improve their chances of a comfortable and secure retirement. It’s never too early to start planning, and even small changes now can lead to substantial long-term benefits.