Suze Orman: 2027 could be a turning point for retirement savers as 3 major obstacles loom

Anyone putting money aside for retirement is already ahead of many people in the U.S.

Gallup reports that roughly four in 10 Americans do not have money invested in a retirement savings plan such as a 401(k), 403(b) or individual retirement account (IRA).

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Still, personal finance expert Suze Orman says younger workers should prepare to increase their retirement savings in 2027. She advises raising 401(k) contributions by 1% or 2% and also maximizing Roth IRA deposits.

“Yes, I know paying today’s living costs is a challenge. Housing is expensive. And then there’s gas for those of you with long commutes, utilities and food,” she says in a blog.

Even so, she argues that building retirement savings becomes more difficult with age, especially because of three “curveballs” that could upend a plan.

1. Caregiving duties

People are living longer, but many older adults are also living with one or more chronic conditions. As a result, there is a strong chance you may eventually become a caregiver for a family member.

Northwestern Mutual’s 2026 Planning & Progress Study found that about two in five Americans, or 39%, are or have been caregivers, while 56% think they are likely to become one.

The toll can be emotional as well as financial.

A newly released AARP study found that out-of-pocket costs for family caregivers have risen nearly 60% since 2021. On average, they are spending $11,508 a year, which equals about 31% of annual household income.

That is only the average. CareScout says the monthly median cost of assisted living in the U.S. is $6,200, while a private room in a nursing home costs $10,798.

Caregiving can also interfere with work. The AARP study found that nearly two in three working caregivers, or 65%, experienced at least one work-related disruption because of caregiving, including changing hours, taking time off or taking on extra work.

When retirement contributions are paused or savings are tapped to cover those costs, the long-term effect can be significant.

“The caregiver may lose current savings, potential market growth, an employer match, and, in some cases, Social Security earnings,” writes Peter Richardson, vice-president of planning philosophy and thought leadership at Northwestern Mutual, in the study.

Northwestern Mutual also found that 21% of current and former caregivers ended up working longer hours, taking a second job or adding a side gig to absorb the financial strain.

That is why Orman says it helps to save more while you are younger: “If you eventually need to step in and help a loved one, you will already be further ahead with your retirement savings.”

2. Supporting adult children

Parents may also find themselves supporting adult children for longer than expected, sometimes while also helping aging relatives.

Research from Realtor.com shows that nearly one in three adults ages 25 to 34 lived with their parents in 2025. And many of them are working.

Among young adults living at home, about 70% are employed. “Something about their income level, debt load, or the cost of housing in their market is keeping them home despite steady employment,” Hannah Jones, senior economist at Realtor.com and author of the report, said in the article.

Even after moving out, many adult children still rely on their parents for financial help.

A LendingTree survey found that about 71% of parents have financially supported an adult child. Most of that aid goes toward everyday costs such as groceries, bills, rent, car payments and credit card debt.

That support comes at a cost: 64% of parents said it left them financially stressed, and 11% said it slowed their retirement planning.

Helping adult children can make it harder to accelerate retirement savings, even when income rises.

As Orman notes, “curtailing your retirement savings in your 50s and 60s to help a grown child could absolutely put your retirement security at risk.”

3. Career uncertainty

Economic uncertainty and rapid technological change have made job security a growing concern for many workers.

According to the American Psychological Association’s 2026 Work in America survey, 44% of surveyed workers said they were concerned that an economic slump, downturn or recession could leave them laid off, furloughed or out of work within the next 12 months.

Even more, nearly one in three workers, or 32%, were worried about losing their job within the next few weeks or months.

Job instability can make it harder to reach goals such as buying a home, but it can also affect health insurance, workplace retirement savings and even the Social Security benefits used to calculate later-life income.

Orman warns against assuming that a long career and rising pay will always be enough: “it has always been risky to assume you don’t need to save much when you are younger because you intend to have a long career with ever-rising income.”

You may have to leave the workforce earlier than planned because of a layoff, health problems or caregiving responsibilities.

“But what is very much in your control right now is committing to saving even more for retirement when you are young,” writes Orman.

How to boost your savings

Even if money is tight, small adjustments can help.

One simple move is to increase automatic retirement contributions by 1%. The change is modest, but over time it can grow through compounding without putting too much pressure on day-to-day cash flow. If you get a raise, consider raising your contributions too.

It can also help to review your budget. Do you really need five streaming subscriptions? Cutting one or two and moving that money into savings is one easy option.

When extra money comes in, such as a birthday gift, tax refund or work bonus, set aside part of it. If you have a 401(k) and your employer offers a match, try to contribute enough to capture the full amount of free money.

You may also want to look into opening a health savings account if you qualify or buying long-term care insurance. A qualified financial advisor may be able to help you organize your assets in a way that supports your long-term financial security.