Personal Finance

The key is to make sure you have enough time for your savings and market returns to grow.

Know your debt: Understand your interest rates, particularly for student loans. “If any of your debts have an interest rate above 6 percent, you’re better off paying them down,” said Blanchett of Morningstar.

That doesn’t mean you should ignore your 401(k). Continue to contribute at least up to the match, and apply whatever is left over toward servicing debt.

Configure your cash flow: Avocado toasts and lattes won’t ruin your finances. Lifestyle creep and splurging on big-ticket items will.

“You’re going through all this effort to save five dollars a day, but when you spend $500 on something else it offsets your benefits from making small expense reductions,” said Pfau of The American College.

Manage expectations: Pensions, Social Security and personal savings were once the primary sources of retirement income. Now, pensions are “out” and working is “in.”

As of May 2016, nearly 20 percent of Americans aged 65 and over said they were working, according to Pew Research.

“The third leg of the retirement income stool is now ‘continuing to work’ to make ends meet,” said Ward of T. Rowe Price.

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