Retiring Without $1 Million? 8 Ways to Help Your Savings Go Further

A secure retirement depends on income, spending, taxes and flexibility—not on having seven figures saved

Approaching retirement without a $1 million nest egg does not mean retirement is out of reach. For savers with a six-figure balance, these eight financial do’s and don’ts can help stretch savings.

1. Do: Figure out your target

Start with the amount you’ll need in retirement instead of focusing only on what you’ve already saved. Needs often decline with age. Social Security can serve as an inflation-adjusted lifetime income source, and any pension income should be part of the plan.

Don’t rely only on interest and dividends to cover spending. That can restrain growth and leave you exposed to inflation. A diversified portfolio of stocks and bonds, along with some capital gains distributions and a cushion for rising costs, can provide more balance.

If your savings still won’t fill the gap between Social Security and your income needs, think about downsizing, a reverse mortgage or working part time. If you are still employed full time, consider increasing retirement-plan contributions.

A qualified financial adviser can help run the numbers and estimate your chances of success.

2. Do: Create a backup plan

Guard against major setbacks by maintaining health insurance if you are not yet eligible for Medicare, as well as long-term-care and umbrella coverage. Work with an attorney to prepare or refresh estate documents. And do not retire without an emergency fund equal to at least three to six months of expenses.

3. Don’t: Claim Social Security without a plan

If you begin taking Social Security and continue working part time or full time, your benefit may be reduced. For anyone younger than full retirement age, benefits are cut by $1 for every $2 earned above $24,480, based on 2026 rules.

It is usually wiser to wait until you know you will not be penalized. Delaying benefits beyond 67 can increase them by 8% a year, up to 124% of your standard monthly amount. Consider these questions:

• How long are you likely to live? Waiting means the larger benefit must eventually make up for the years you could have collected earlier.
• How much do you need the money now?
• Could claiming Social Security interfere with Roth conversions?

4. Do: Plan taxes before and during retirement

Roth conversions can be especially useful in the years between retirement and required minimum distributions. An accountant or adviser can help determine how much to convert each year so you:

• Do not move into a higher tax bracket
• Do not convert more than needed to balance taxes before and after RMDs
• Do not trigger higher Medicare premiums by crossing income thresholds known as income-related monthly adjustment amounts

Converting too much can push taxes higher during the years before RMDs. Later, when RMDs are smaller, you may pay little or no tax, but the result can still be a larger lifetime tax bill paid sooner.

5. Don’t: Overlook RMDs and Medicare

As taxable income rises, Medicare premiums can rise too. For instance, a single filer in 2026 with modified adjusted gross income of $109,000 pays the standard Part B premium of $202.90 a month. Increase that income by just $1 to $109,001, and the premium jumps to $284.10.

6. Do: Pay off expensive debt

One of the best moves for financial security is avoiding credit card debt because its interest is high and not tax-deductible. Pay balances in full each month.

The size and structure of your debt, including auto loans or leases, mortgage debt or home equity loans, can greatly affect retirement. Compare interest costs with the opportunity cost of paying them down.

7. Do: Stress-test and revise your plan

Testing your plan under different assumptions can help you make better choices about routine spending and possible changes under scenarios such as:

• Stocks falling 30%
• Inflation staying elevated
• The death of a spouse
• Long-term care being needed
• A delay in Social Security
• A major home repair
• Living well into your 90s

Review the plan again after events such as the death of a spouse, a move, tax-law changes or an inheritance.

8. Don’t: Assume six figures is either enough or not enough

Financial security is tied more to purchasing power than to the size of your portfolio. Some expenses, including healthcare, groceries, entertainment and rent, tend to rise with inflation. Fixed mortgage payments do not.

That means your annual withdrawals will likely need to rise over time even if your lifestyle stays the same. You can manage this by using a tax-efficient investment and withdrawal strategy. A flexible spending plan can also help trim discretionary costs when inflation is high or markets are weak.

This article was provided to The Associated Press by Morningstar. For more retirement content, go to https://www.morningstar.com/retirement.

Sheryl Rowling, CPA, is an editorial director and financial adviser for Morningstar.

Related Links:

Morningstar: How To Make Your Money Last in Retirement

Morningstar: Your Retirement Countdown, With Christine Benz

Morningstar: Retirement Planning for Real Life