As concerns over market volatility and the prospect of a recession mount, American workers remain focused on the immediate financial demands of daily life — meeting mortgage and rent payments, managing rising grocery and fuel costs, and keeping up with other essential expenses.
Even as they navigate these challenges, many prioritize long-term financial security, steadily contributing to 401(k) plans and Individual Retirement Accounts (IRAs) to safeguard their futures amid economic uncertainty.
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Suze Orman, the personal finance author and media personality, emphasizes the importance of strategic retirement planning — an area where many Americans fall short.
Despite market headwinds, U.S. workers recognize the value of retirement savings tools such as 401(k)s and IRAs. Employer-sponsored 401(k) plans, in particular, offer a structured approach to saving for retirement, with matching contributions providing a significant advantage.
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Automatic payroll deductions help ensure a disciplined savings strategy, requiring minimal ongoing effort — an approach that makes it easier for workers to stay on track.
In 2025, the annual contribution limit for 401(k) plans increased to $23,500, up from $23,000 in 2024. Additionally, catch-up contributions for workers aged 60 to 63 rose to $11,250 — higher than the previous $7,500 limit for those aged 50 to 59.
IRAs present another avenue for retirement savings, granting individuals access to investment opportunities not always available within 401(k) plans.
However, they require more hands-on management, as account holders must initiate and oversee contributions themselves — a factor that may deter some from taking full advantage of their benefits.
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IRA contribution limits for 2025 remain unchanged at $7,000, with an additional $1,000 catch-up provision for those aged 50 and older.
Considering these financial realities, Orman suggests some major steps people can take to ensure a comfortable retirement.
Personal finance author Suze Orman is pictured. The media personality explains important tasks to take care of before retirement, including investing in a Roth IRA.
Suze Orman explains Roth IRAs, setting finances straight for retirement
Orman recommends Roth IRAs that offer tax-free growth and withdrawals, making them powerful for retirement savings.
Contributions are made after taxes, so qualified withdrawals — including earnings — are tax-free. They have no required minimum distributions, allowing savings to grow longer.
Contributions can be withdrawn anytime without penalty, adding flexibility. They’re great for young investors expecting higher future tax rates. Plus, they provide estate-planning benefits, letting heirs inherit tax-free income.
Orman, in an exclusive interview with TheStreet, explained some things people can do every day to set themselves up for retirement.
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“The one thing you could do is to make sure that when you do retire, if you own a home, your home is owned outright. You don’t have any debt whatsoever,” she said. “You have absolutely downsized so that your expenses are as least as they could possibly be. Because the less that your outgo has to be, the less money you need to generate income to pay that outgo.”
“So the one thing you can do every single day is get rid of your debt, increase your savings, make sure you’re putting it all in a Roth retirement account,” she continued. “Do not do a traditional retirement account and just keep on saving, saving, saving.”
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Suze Orman suggests a strategy beyond Roth IRAs, dealing with inflation
Asked by TheStreet about money moves everybody should be making to avoid running out of money in retirement, Orman offered more words of advice.
“Again, as I’ve always said, get your expenses down. But you really have to be projecting what inflation will do with your money, how you’re going to spend it,” she wrote. “And you have to really get a grip on that. Money is for you in retirement, unless you have a serious amount of money.”
“It’s not about giving it to the kids or the grandkids. It’s about making sure you are absolutely OK,” she said. “And also you have plans for long term care. As you get older, who’s going to take care of you? Who’s going to pay the bills? How’s it going to work?”
“And you all have to have a living revocable trust. A will, an advance directive and a durable power of attorney for health care.”
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