American wage earners often experience significant stress while attempting to keep up with their day-to-day living expenses — and most are simultaneously doing their best to save and invest for retirement.
Philanthropist and author Tony Robbins shares a warning for workers about a challenging but likely fact of the future, but also offers some strategies for how they can successfully navigate the path to a comfortable retirement anyway.
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Concerns people have about living the lifestyle they dream of when they retire inevitably come down to finances. And they know they need to be taking steps to prepare for that now, such as putting money away in an employer-matching 401(k) and a tax-advantaged Roth IRA (Individual Retirement Account).
Americans are eligible to apply for Medicare when they become 65 years old, provided they were paying the relevant taxes while they were working. But the federal program does not cover all health care expenses during retirement.
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Health care costs tend to increase over the years, so having enough saved to pay for medical treatments, prescription drugs and long-term care weigh on workers’ minds.
Social Security monthly paychecks are usually not enough to provide for all living expenses such as housing, utilities, groceries, transportation and other costs.
Beyond basic survival expenses, most people imagine a retirement that involves time to pursue leisure, hobbies and travel to enhance their quality of life.
Robbins offers a word of caution about retirement savings and has some advice about how to succeed financially in the future.
A retired couple is seen walking along a beach. Author and motivational speaker Tony Robbins answers some questions many people have about saving for retirement and investing in 401(k)s and IRAs.
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Tony Robbins has a warning about traditional 401(k)s, Roth 401(k)s and taxes
Robbins makes clear his concern about how high taxes can make saving for retirement more difficult.
And he warns people saving for retirement that taxes are likely to go up over time.
If a worker’s employer matches contributions to a 401(k) plan, Robbins emphasizes the importance of taking advantage of it.
“The company is essentially covering the taxes for you,” he wrote in his book, Money: Master the Game.
Assuming taxes are likely to rise (and a worker has the option), Robbins suggests checking the box that gives contributions the “Roth tax treatment.”
With traditional 401(k)s, taxes are deferred until retirement. For Roth 401(k)s, taxes are paid up front, but withdrawals during retirement are tax free.
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Robbins cited a conversation he had with Dr. Jeffrey Brown of the University of Illinois in which Brown echoed Robbins’ warning on future taxation.
“I’d take advantage of every Roth opportunity I can,” Brown said, according to Robbins. “I’ve spent a lot of time looking at the long-term fiscal outlook for the United States, and you know I am a pretty optimistic guy, on the whole.”
“But I have to tell you,” Brown continued. “I cannot envision any situation in which our need for tax revenue in the future is not going to be higher than it is today.”
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Tony Robbins suggests workers set up a Roth IRA
Robbins explains that one of the most frequent questions he gets with regard to retirement investments involves whether or not one should set up a Roth IRA. His answer was simple.
“Yes!” he wrote.
Like with a Roth 401(k), contributions to Roth IRAs also require one to pay taxes up front. In retirement, withdrawals can be made tax free.
In 2025, the maximum contribution limit to a Roth 401(k) is $7,000 under 50 years of age. For those 50 or older, an additional $1,000 catch-up contribution can be made.
There are also income limits of which to be aware. In order to contribute the full amount, an individual’s modified adjusted gross income (MAGI) must be under $150,000. For married couples filing jointly, the income limit is $236,000.
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