10 Tips for a Financially Sound Retirement

By Vinita Singla, special to CNBC

NEW YORK (CNBC) -- If saving for retirement was a struggle before the financial crisis of 2008, imagine how lost jobs, flat wages, underwater mortgages, higher energy and food costs, and local and state tax hikes have combined to make the goal even harder.

Insufficient retirement money is the number one financial worry among 66% of Americans, according to a Gallup poll. Yet many of them have long-term retirement savings plans.

Americans who don't save for retirement often outlive their assets. Of those folks, 68% have less than $1,000 in savings, according to the Employee Benefits Research Institute, EBRI. "More and more in today's environment, people really have to take responsibility for their own retirement security," says Jean Setzfand, AARP's vice president for financial security.

So, think of saving for retirement as a second job.

More from CNBC Midlife Parents Face a Double Whammy The New Retirement Calculus Life Without a Mortgage

Here are some strategies to help you plan for a financially secure retirement. You may not be able to achieve all of them, but the more the better.

1. Be debt-free before retirement

Debt during retirement increases one's expenses while eroding one's nest egg.

To avoid unnecessary financial burdens, "take stock of your situation and create a plan to reduce debt as you approach retirement. In some cases, paying down debt might mean delaying full retirement," says Setzfand.

Many experts still recommend owning one's home before or at retirement.

"During the 2008 financial crisis, clients with a free and clear home tended to sleep better than those who still had a mortgage," says Brian Fricke, a certified financial planner (CFP) and author of "Worry Free Retirement."

If you retire holding a mortgage, ensure that you can afford the utilities, maintenance, and insurance payments that also come with owning property, says Setzfand.

Also, consider downsizing to a smaller home; paying down mortgage principal and refinancing the remaining portion to reduce your monthly mortgage payments; and weighing the tax benefits against a complete pay down.

2. Design savings and spending plans

This one is a must for everyone.

"Retirement planning is particularly hard because the implications of your choices tend to get magnified," says Jason Branning, CFP, and owner of Branning Wealth Management.

1 2 3 4 Next › Last »