In Kalamazoo, Michigan, the topic of retirement takes on various forms. For some, it's a long-awaited goal, while for others, it seems like an unattainable financial benchmark. A Bank of America Institute survey revealed that roughly half of households live paycheck to paycheck this year. So, the question arises: how much do we really need to retire comfortably?

Uncover the Secrets to a Comfortable Retirement

At 25 Years Old

Starting at 25, it's crucial to begin planning for retirement. Enroll in your employer's 401K plan and start saving, even if it's just per paycheck. By getting into the habit early, you set the foundation for a secure future. Saving a small amount regularly adds up over time and can make a significant difference in your retirement savings.

Don't overthink it; just get that money in there and let it grow. Every little bit counts, and it's a step in the right direction towards a comfortable retirement.

At 45 Years Old

When you reach 45, it's time to take more decisive steps. Find a financial planner who can guide you through the complex world of investments. Max out your 401K contribution to take full advantage of the tax benefits and employer matching. Consider investing in active real estate such as rental properties to diversify your portfolio.

Continue to build your savings account as well. Many employers allow you to deposit into two different accounts, which can help you manage your finances more effectively and accelerate your savings.

At 65 Years Old and Near Retirement

As you approach full retirement age at 65, it's important to pay off high interest debt. This can free up more money in your budget and reduce financial stress. Examine your lifestyle choices and look for areas where you can cut back or eliminate expenses.

Sometimes, it's easier to eliminate an expense rather than trying to build an asset to cover it. By making these adjustments, you can ensure a more stable financial situation during retirement.

For Those Still Working in Retirement

Like Ann Randol at 72 and Marlene Stoops at 87, working in retirement can bring a sense of purpose and structure to life. Ann finds joy in serving cinnamon rolls at Rykse & Co., while Marlene stays active by pouring fresh coffee.

Financial advisors also suggest considering delaying retirement altogether. The more you save for retirement, the more fun you can have during those golden years. Life is great when you have a reason to get up and start something new, regardless of your age.

It's important to note that between 62 and 67 years old, social security on average will go up about 6% a year, and from 67 to 70, it increases by about 8% per year. Once you reach full retirement age at 67, you can earn as much money as you want without impacting your social security benefits.