Do the math. Estimate how many years you have left to live and divide your savings by that number. (“Most people should assume they will live to at least 95.”) If your savings, pension, and Social Security benefits will not cover your expected annual expenses, you need to “make adjustments.”
Spend less sooner. Cutting back can be hard—if you do it all at once. Instead, ease into a more frugal lifestyle starting a few years before your planned retirement date.
Work longer. Not only can you build savings, but the size of your monthly Social Security check “significantly increases” each year you work from age 62 to 70.
Exit in stages. If you can, “choreograph a gradual shift” from full- to part-time work before leaving the labor force entirely. This gives you time to start pursuing other interests while you’re still earning.
Source: The Boston Globe