Did you know that over half of Americans don’t calculate how much they need to prepare for retirement? In fact, in 2014, 30% of private industry workers with access to a 401(k) plan did not participate.

Because the average retiree spends about 20 years in retirement, planning head is extremely important. Let’s take a look at tips to help you prepare for your retirement.

1. To Prepare for Retirement, You Have to Save.

If you’re not saving, now is the time to start. Even if you can only save in small amounts, save. The sooner you start saving, the more time your money has to grow. Make saving for retirement a priority. It’s never too early or too late to start.

2. Know what you’ll need.

Knowing what you’ll need to cover your essentials will give you a starting point for your needed income. Experts estimate that you need between 70-90% of your current income to keep up your standard of living after you stop working. However, you also need to factor in unexpected expenses like medial needs, household needs, etc.

3. Save wisely.

Instead of simply putting money into a savings account each month, consider making smart investments. Investments play an important role in how much you’ll be able to save before retiring. Put your money into different types of investments instead of putting all your eggs into one basket. This way you can reduce your risk and raise your return.

4. Put money into an IRA.

The greatest benefit of IRAs is their tax advantages. They also give you an easy way to prepare for retirement. You can set them up so that an amount is automatically deducted from your checking or savings account and deposited in the IRA.

5. Cushion your savings with a reverse mortgage.

Reverse mortgages used to be thought of as last resort options. Today, more people are using them to cushion their retirement plans. Instead of dipping into their savings, retirees are living off of their reverse mortgage income and letting their savings and investments grow.