Suze Orman sends surprising message on retirement, IRAs, 401(k)s | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

As Americans look ahead to retirement, one pressing issue often looms large: Will I have enough money to make it all work?

Renowned personal finance expert and media figure Suze Orman offers clear, straightforward advice on navigating 401(k)s and Roth IRAs — tools she believes are key to a successful retirement strategy.

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Orman strongly urges employees to take full advantage of their workplace 401(k) programs, particularly when an employer match is on the table. That match, she notes, is essentially “free money” that shouldn’t go untapped.

Her guidance: Aim to contribute between 10% and 15% of your earnings to a 401(k), adjusting for your age and financial situation. If your plan includes a Roth 401(k), Orman says to seriously consider it, as it provides the potential for tax-free growth over time.

She also highlights the power of Roth IRAs, which allow retirees to withdraw funds without facing taxes — making them a valuable piece of the retirement puzzle.

And there’s one consistent theme in her messaging: Start as early as you can. By doing so, you allow compound interest to work in your favor, helping you not only stay on track, but also possibly surpass your long-term savings goals.

To Orman, retirement planning isn’t merely about squirreling money away — it’s about making intentional, wise investment choices that protect your wealth and help it grow.

Bestselling personal finance author Suze Orman has some key advice on 401(k)s, IRAs, and continuing to work during retirement.

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Suze Orman explains surprising retiree trend adding to 401(k), IRA income

Orman calls attention to a recent report that explains a surprising outcome many people discover as they find ways to increase their retirement income beyond Social Security monthly paychecks and income from 401(k)s and IRAs.

“I hope each of you does it on your terms, according to your plan,” Orman wrote in a June 19 email newsletter. “But I hope your plan also considers the possibility that things don’t always go according to plan.”

The 2025 Employee Benefit Research Institute’s annual Retirement Confidence Survey highlights three ways in which well-intentioned retirement planning assumptions often don’t pan out as expected.

Working for pay in retirement. According to this year’s findings, 75% of current workers anticipate continuing to earn income after they retire. Yet the actual numbers tell a different story — only 30% of retirees say they’re currently bringing in a paycheck.

Early retirement on your own terms. Roughly two out of every three individuals who said they retired sooner than they expected admitted the decision wasn’t up to them. Around 30% were let go because of layoffs or company restructuring, while another 30% cited health issues or disabilities as the reason for leaving the workforce. A portion also retired early to provide care for a partner or family member in need.

More on retirement:

Retirement as a gentle glide. Fifty percent of workers surveyed said they hope to ease into retirement by slowly cutting back on their hours instead of stepping away from full-time work all at once. But the experience of most retirees tells a different story — almost 75% said they had no such gradual shift. Instead, they stopped working suddenly, going from their last day on the job straight into full retirement practically overnight.

Suze Orman clarifies hopes regarding 401(k)s, IRAs, other retirement income

Orman encourages people to factor uncertainty into their retirement planning, especially as they calculate income they expect to receive from the 401(k) plans and IRAs they have been contributing to doing their working years.

She advises people to clearly outline their expectations — when they hope to retire, how they envision that transition, and how much income they anticipate earning from paid work during retirement. Then, for each assumption, she suggests confronting the possibility that things may not unfold as imagined.

She stresses that while future events such as layoffs or health issues can’t be predicted or controlled, what people can do is take action now. By increasing savings today, they can create a financial cushion that offers more flexibility if life takes an unexpected turn.

“It is fantastic to make plans and to work toward those plans,” Orman wrote. “But the best plans are stress-tested to make sure they have a high probability of success, no matter what curveballs come your way.”