Jean Chatzky, a financial expert, has some important advice for Americans planning for retirement. She says that Social Security benefits alone are not enough to live on in retirement. The average monthly benefit is about $1,900, or $23,000 per year.
Most people need more than that to have a comfortable retirement. Chatzky says that investing in a Roth IRA is a good idea. With a Roth IRA, you pay taxes on the money you put in now.
But when you take the money out in retirement, you don’t have to pay taxes on it. This is different from a Traditional IRA, where you don’t pay taxes on the money you put in, but you do pay taxes when you take it out later. There are some rules about Roth IRAs to know.
In 2025, you can put in up to $7,000 per year. If you are 50 or older, you can put in an extra $1,000, for a total of $8,000. To put the full amount in a Roth IRA, single people must make less than $150,000 per year.
Chatzky’s retirement savings strategies
Married couples must make less than $236,000. Chatzky also talks about when to start taking Social Security benefits.
She says that waiting until age 70 can be a good idea, especially if you think you will live a long time. For married couples, the higher earner should wait to take benefits if they think one of them will live a long time. Many people work while getting Social Security.
Some do it because they need the money. Others do it to stay busy and social, which makes them happy. Chatzky says it’s important to figure out how to make your money grow.
This will help close the gap between what you have saved and what you will need in retirement. People are living longer, often to age 80 or beyond. This means more years of retirement to plan for.
By sharing this advice, Jean Chatzky helps people better plan for a secure and comfortable retirement. She shows how to make the most of Social Security and Roth IRAs.
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