The financial steps to ensure you don’t run out of money during retirement, according to experts

For Americans preparing for retirement, running out of money in old age is a major concern.

Maximizing the chance of a comfortable retirement is more important than ever, because new research from Morningstar predicts that 45 percent of American households will experience financial problems during retirement.

But by taking simple steps, you can ensure that the vast majority of Americans are not left behind in their old age.

Morningstar found that investing in a company pension is the best way to ensure a smooth retirement.

According to the investment research firm, 79 percent of Americans who have invested in a defined contribution plan, such as a 401(k) or 403(b), for at least 20 years would have enough money for retirement.

One simple step can make the difference between a comfortable or stressful retirement

The second step to ensuring financial well-being during your retirement is finding the right time to stop working, CNBC reported.

The longer you wait, the greater the chance that you will have enough money until the end of your life.

Morningstar predicts that 45 percent of households retiring at age 65 will run out of money.

However, if that age is increased to 70 years, the chance drops drastically to 28 percent.

Social Security benefits, a key pillar alongside a 401(K) for retirement income, begin at age 67 for everyone born after 1960.

However, the Social Security Administration increases your benefit by 8 percent for each year after your full retirement that you delay taking your benefit, until age 70.

“The model paints a clear picture: Participating in an employer-sponsored defined contribution plan significantly reduces the risk of pension shortfalls,” said Spencer Look, associate director of retirement research at Morningstar.

“Not only does our model set a new standard in retirement research, we can also provide actionable insights that policymakers and plan developers can use to improve product design, all with the goal of helping more Americans achieve their retirement goals.”

The longer you wait to retire, the more likely you are to have enough money

“The most important lesson we want young people to learn – or at least something really important to emphasize – is that if you have access to a plan but you’re not participating, we certainly encourage you to participate. Saving something is better than nothing,” Look added.

The report also found that certain population groups are at greater risk of financial hardship in retirement.

The findings show that 55 percent of single women are at risk of retirement, compared to 41 percent of couples and 40 percent of single men.

While there are calls for more savings to help people maintain control over their retirement plans, Morningstar also said the findings should give the industry pause for thought.

“The retirement industry should focus on providing more Americans with access to an employer-sponsored plan and improving participation rates among those who already have access,” the report said.

“Plan sponsors should consider adding automatic enrollment and additional features to a plan, such as a student loan contribution or an emergency savings account, to encourage participation.”