I’m 43 years old, make $84,000 a year and have $79,000 saved up for retirement — what can I do so I don’t have to work until I die or retire poor?

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Before retiring, it's crucial to make sure you have enough money to last throughout your senior years -- but figuring out if you're saving enough can be a challenge when you're only halfway through your working career.

Let's assume you're 43 years old, making $84,000 per year, and have currently saved $79,000 for retirement. You likely have around 20 years of work ahead of you, assuming a typical retirement age. If you continue to save at this rate, are you saving enough?

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Citizens Bank. That means $79,000 is still a long way off from that ideal figure they call the "magic number."

According to numbers from the U.S. Census Bureau, the median household income in 2023 was $80,610, so you're not alone in your financial situation. Don't worry, there are still ways you can get back on track.

What to do if you're falling behind on retirement savings.

If you're significantly behind on your retirement savings, saving even $100,000 may seem out of reach. However, if you have around 20 years before retirement, it's time to get started.

The first thing you'll need to do is establish a savings target. Fortunately, there are several ways to achieve this, but the most straightforward approach is to begin calculating.

Your salary can be computed by considering a 2% annual increase, compounded each year until you reach the age of 65.

Final salary of $127,316, which is equivalent to $1.273 million.

To reach your goal of retiring with $501,647, with a current savings of $79,000, you'd need to set aside $1,569 per month for the next 22 years. This equates to roughly 22% of your monthly income, which may be a significant expense. However, establishing a target is the initial step towards achieving financial independence.

Next, you'll need to make significant reductions in spending. Although it may be difficult in the short-term, it could ultimately be quite beneficial.

Take a closer look at reducing expenses and redirecting those savings towards your retirement fund:

• Take a close look at where you're spending the most money and think of ideas to either eliminate or decrease those expenses.
• Consider downsizing to a smaller home, relocating to a more affordable location, or exploring the option of moving in with a family member
• You can eliminate car payments, insurance, and other expenses by selling your car and switching to riding a bike or using public transportation. Alternatively, if that's not possible, consider trading your car in for a more affordable model.

Refine or customize your retirement goals.

3. "Alternatively owning a property in the US allows the investor extra credit or liquidity opportunities, but the asset value fluctuates.

Getting Back on Course

If all those financial considerations are overwhelming, the good news is that you can start getting back on track by investing in the right accounts and taking advantage of tax credits.

By reducing your taxable income, you can save more money with higher contributions and increase your tax savings. Similarly, your investments can grow tax-free until you withdraw them in retirement. Some employers may also match your contributions.

Consider your options and choose the one that suits you best, then begin transferring funds to your chosen retirement savings plan.

enables you to contribute "pre-tax" income, allowing it to grow tax-free until withdrawals are made in retirement. However, your contribution limits are lower than what they would be in a 401(k).

This plan lets you pay taxes upfront on your contributions, so when you withdraw the money in retirement, your withdrawals and earnings are typically tax-free. However, you're only eligible for this account if your filing status and income level meet the requirements set by the IRS.

You can also contribute to these accounts. With a 401(k), you can set aside up to $7,500, and with an IRA, you can allocate up to $1,000.

has consistently produced 10% average annual returns over the long run.

You can put that extra money into savings or investments.

In the end, you still might not end up as a wealthy retiree, but every dollar you save brings you closer to achieving financial security and a happy retirement.

What to read next

• Here's how saving just 2 minutes a day can add up to more than $600 by 2025.
• Here's how
• There is no paraphrased text to deliver.

This article provides information and does not constitute advice. It is offered without any kind of guarantee.