Suze Orman’s Top Retirement Advice You Shouldn’t Ignore

Retirement is a goal most Americans share, but reaching it comfortably requires planning that starts long before you hand in your badge. Finance expert Suze Orman has spent decades distilling that planning into clear, actionable guidance. Here are the six principles she returns to most often.

No. 1: Save Early and Consistently

Compound interest is the single most powerful tool available to retirement savers, and it rewards patience above everything else. Every year you delay getting serious about saving is a year that compounding cannot work in your favor.

A simple example makes the case. Put $5,000 into a savings account earning 5% annually and you collect $250 in year one, leaving a balance of $5,250. In year two, that same 5% applies to the larger balance, netting $262.50. The growth accelerates from there. Leave the original $5,000 untouched for 30 years at that rate and the account grows to $21,609.71 without a single additional deposit. Time, more than any rate of return, is what turns modest contributions into a substantial nest egg.

Orman’s broader message is consistent. As she wrote in a 2025 post on her website, “The earlier you start, the better prepared you’ll be to enjoy the retirement you deserve.”

No. 2: Know Your Retirement Needs

Before you can fund your retirement, you need to understand what it will actually cost. That means taking an honest inventory of expected expenses across healthcare, housing, and lifestyle choices. A globetrotting retirement looks very different on paper than one spent close to home, and projecting those costs realistically is the essential first step. Your spending in retirement is entirely a product of how you plan to live.

One widely used starting point is the 4% annual withdrawal rule: drawing no more than 4% of your portfolio each year gives you a high probability of not outliving your savings. That figure is a helpful baseline, though individual circumstances vary widely. Orman herself has suggested the 4% rule may be too aggressive in a high-inflation environment, which makes personalized planning even more important. Consulting a financial advisor before committing to any specific withdrawal strategy is strongly recommended.

No. 3: Max Out Your Retirement Account Contributions

Tax-advantaged accounts are among the most efficient vehicles for building retirement wealth. A traditional IRA lets you invest on a tax-deferred basis, with contributions often deductible from your taxable income. A Roth IRA works in reverse: contributions come from after-tax dollars, but growth and qualified withdrawals are entirely tax-free. Your financial advisor can help you weigh which structure fits your situation best.

For the self-employed, the Solo 401(k) offers especially generous limits. In 2025, the combined employee-plus-employer contribution cap sits at $70,000 for those under 50. Savers aged 50 to 59 or 64 and older can add a $7,500 catch-up contribution, raising their ceiling to $77,500. Participants aged 60 to 63 qualify for a higher “super catch-up” of $11,250 under SECURE 2.0, bringing their 2025 total to $81,250. For 2026, the base cap rises to $72,000, with the standard catch-up increasing to $8,000 for those 50 and older (ceiling: $80,000). Participants aged 60 to 63 in 2026 still qualify for the $11,250 super catch-up, pushing their combined ceiling to $83,250. One additional wrinkle effective 2026: savers who earned more than $150,000 in prior-year FICA wages must make their catch-up contributions on a Roth basis rather than pre-tax. Orman’s core advice remains straightforward: maximize these accounts before directing money elsewhere.

Even if you have access to a workplace 401(k), Orman recommends the Roth option when available. Contributing just enough to a traditional 401(k) to capture any employer match, then directing additional retirement savings into a Roth IRA, is the tax-smart combination she has consistently recommended.

No. 4: Diversify Your Portfolio

Spreading investments across multiple asset classes reduces the risk that any single holding can derail your retirement timeline. Orman recommends blending stocks, bonds, and other assets such as real estate to smooth out volatility over the long run. Stocks provide the growth needed to outpace inflation; bonds offer stability when markets swing. The right allocation shifts as retirement draws closer, which is why Orman consistently urges savers to revisit their portfolio regularly and work with a financial advisor as the target date approaches.

No. 5: Pay Off High-Interest Debt

Carrying a credit card balance into retirement is a serious financial hazard. Federal Reserve data shows the average credit card interest rate stood at 21.15% as of May 2026, and rates can run significantly higher for borrowers with lower credit scores. Paying that kind of interest on a fixed income creates a heavy and unnecessary burden. The goal is to enter retirement debt-free, or as close to it as possible.

Three approaches can help accelerate that progress. First, tackle the smallest balances first: eliminating them frees up cash flow that can be redirected toward larger, higher-rate balances. Second, make minimum payments on all accounts while directing every available dollar toward the balance carrying the highest interest rate. Third, consider a debt consolidation loan to roll multiple balances into one, simplifying repayment and potentially freeing up room to start building an emergency reserve.

On emergency savings, Orman is notably conservative. She recommends keeping eight months of living expenses in a dedicated savings account, separate from checking, to protect retirement investments from being tapped during an unexpected financial setback. For those already in retirement, her more recent guidance adds a second layer: keeping two to three years of living expenses not covered by Social Security in a separate cash position specifically designed to prevent forced selling during a market downturn.

No. 6: Consider Delaying Social Security

For anyone born in 1960 or later, full retirement age (FRA) is 67. Claiming at exactly that age locks in the standard benefit. Waiting past FRA is where the meaningful upside lies. According to the Social Security Administration, benefits grow by approximately 8% for each full year you delay past FRA, up to age 70. For a retiree with an FRA of 67 who waits until 70, that translates to a 24% larger monthly check for life. Claiming as early as age 62, by contrast, permanently locks in just 70% of the earned benefit, a 30% reduction that can never be reversed and that compounds against you across every future cost-of-living adjustment.

The 2026 Social Security cost-of-living adjustment came in at 2.8%, adding roughly $56 per month to the average retired worker’s check. Because that percentage applies to your base benefit, a smaller check from claiming early means a smaller dollar raise every single year. In a June 11, 2026 blog post titled “What the Latest Social Security Buzz Gets Wrong,” Orman pushed back sharply on social media voices urging Americans to claim at 62, calling that advice a permanent pay cut for most people. Her position: the math favors waiting in nearly every scenario except a serious health condition or a genuine cash need. For married couples, the calculus is even clearer. The higher earner should wait as long as possible, ideally to age 70, because the surviving spouse inherits the larger of the two benefits. Maximizing the higher earner’s check is, in effect, buying the longest-living spouse a bigger inflation-adjusted income for life.

Orman has also acknowledged that working until 70 is not realistic for everyone. Research from the Transamerica Center for Retirement Studies found that 58% of workers retire earlier than planned, with the median exit age landing at 62. Health setbacks and job-related circumstances are among the leading reasons. If leaving the workforce in your early or mid-60s is likely, Orman recommends a “bridge strategy”: draw from IRA or 401(k) assets in those early retirement years to avoid tapping Social Security, preserving the larger future benefit. Part-time income during the bridge period can reduce how much you need to pull from savings. One firm rule: do not delay past 70. The 8% annual credit stops accruing at that point, so there is no financial reason to wait any longer.

Editor’s note: This pass corrected the 2026 Roth catch-up wage threshold from $145,000 to $150,000 per IRS Notice 2025-67, replaced “more than half” with the specific figure of 58% from Transamerica Center for Retirement Studies research, added the median retirement age of 62 from the same study, and incorporated the average dollar impact of the 2026 Social Security COLA ($56 per month for the typical retired worker) per Social Security Administration data.

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