Financial expert Suze Orman is advising individuals to take proactive steps to secure their financial futures before the start of 2027. Citing potential future obstacles, including career disruption from artificial intelligence and the possibility of needing to care for aging family members, Orman is challenging Americans to dig deep
and prioritize two primary retirement savings goals in the coming year.
Strategic Retirement Adjustments
To better position themselves against unforeseen life events, Orman recommends that individuals increase their 401(k) savings rate by one or two percentage points. She emphasizes that starting these contributions early allows the power of compounding to significantly grow wealth over time. For example, if a household with the 2025 median income of $87,460 increased their 401(k) contributions by 1% starting in 2027, they could accumulate approximately $86,000 in additional savings over 25 years, assuming a 10% average annual return. Orman suggests that individuals make these contributions automatic to ensure consistency.
Suze Orman has a serious retirement warning for 2027 Read more: https://t.co/oQAHTnL377 pic.twitter.com/bRBU91gpbC
In addition to 401(k) adjustments, Orman encourages individuals to max out their Roth IRA contributions if they are eligible. For the 2026 tax year, the contribution limit is set at $7,500 for those under age 50, and $8,600 for those 50 and older, which includes a $1,100 catch-up contribution. Orman advises against waiting until the end of the year to address these goals, suggesting that setting up automatic transfers now is a more effective strategy.
End-of-Year Financial Housekeeping
Beyond retirement contributions, Orman advocates for a comprehensive review of personal finances before the calendar turns. Her recommendations include:
- Making a
date with your money
to dedicate a full day to organizing and reviewing all financial accounts. - Eliminating high-interest credit card debt by requesting rate reductions from issuers and prioritizing payments toward the highest-interest balances.
- Building an emergency fund containing eight to 12 months of expenses, kept in a high-yield savings account.
- Reviewing all insurance policies, including home, rental, and life coverage, to ensure they reflect current property values.
Orman warns against the common cycle of holiday spending, which often causes financial intentions to evaporate before the new year begins.
