Jean Chatzky delivers strong words on 401(k)s, Social Security

It's no secret that preparing for retirement requires thoughtful attention to both financial security and personal lifestyle goals.

That financial foundation arguably begins with understanding where future income will come from — typically a mix of Social Security, personal savings, and retirement accounts such as 401(k)s and IRAs.

Advisors suggest that people should estimate their expected Social Security benefits and assess how much they’ve built up through workplace plans, making sure they’re on track for a reliable income stream.

Jean Chatzky, the financial journalist and former editor for NBC’s “Today Show,” has issued strong warnings about the future of Social Security.

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She points to the average monthly Social Security payment that is already insufficient for most people’s needs (in 2025, it is only about $2,000 per month for retired workers), especially as cost-of-living adjustments often fail to keep pace with inflation.

But a larger issue is on the horizon: Without legislative reform, the Social Security trust funds face a real risk of depletion by 2033. This would likely reduce the expected monthly paychecks for future retirees — leaving many with income somewhere near 20% or less below what they had been anticipating.

Her advice to individuals, particularly those expecting longer retirements, is to consider delaying withdrawals until age 70 to increase monthly benefits.

For couples, she recommends evaluating who should wait based on expected longevity, since this can improve household financial stability over time.

Chatzky, the HerMoney website chief, offers other key points of advice.

A retired couple is seen holding hands and walking on a beach. Former NBC “Today Show” financial editor Jean Chatzky discusses key insight on Social Security and 401(k)s.

Image source: Shutterstock

Chatzky also discusses how it could potentially be beneficial for people to keep working during retirement — not just to supplement 401(k), Social Security and other retirement income, but because staying active can provide a deeper sense of purpose.

For some, employment is a financial necessity, but for others it’s a meaningful way to stay engaged and productive.

More on retirement:

On the topic of retirement savings accounts, Chatzky offers guidance to help avoid the risk of running out of money later in life.

She believes 401(k) plans remain one of the most reliable tools for growing retirement wealth, especially when employers provide matching contributions.

She advocates automating savings so that payroll deductions happen without extra effort, turning good intentions into consistent action.

Jean Chatzky explains other savings similar to 401(k) automation

Chatzky’s approach to retirement savings emphasizes steady progress rather than dramatic leaps — making it accessible and practical for workers at any income level.

She encourages employees to start contributing to their 401(k) plans with whatever amount they can reasonably afford, especially if finances are tight in the early years.

From there, her strategy is simple but powerful: Increase the percentage of contributions gradually with each raise, transforming small steps into long-term success.

For those who begin saving before their mid-thirties, Chatzky recommends aiming for a total annual contribution of 10% of income, which includes any employer match.

If someone starts later, the target climbs to 15%. These benchmarks serve as clear goals to guide savers through each phase of their career.

She emphasizes that even participating in a workplace retirement plan — regardless of the amount — meaningfully lowers the risk of financial shortfall later in life.

Chatzky’s philosophy seems to combine a refreshing take on realism with optimism.

She acknowledges that not every worker can afford aggressive contributions early on, but insists that proactive planning and consistent increases can build meaningful retirement reserves over time.

Her advice may resonate for many because it is seemingly both adaptable and results-driven.

By focusing on early action, intentional adjustments, and a commitment to long-term financial health, Chatzky offers average Americans a straightforward roadmap toward a more secure retirement.

Building confidence through smart decisions — and staying financially stable as life evolves — feels like a pretty understandable approach.