Are you saving enough to retire comfortably?
Your total retirement savings across all accounts (401k, IRA, etc.).
How much you save for retirement each month, including employer match.
Historical stock market average is 7-10%. Use 7% for a conservative estimate after inflation.
When you plan to stop working — typically 62-67 for most Americans.
See your projected retirement balance and whether you're on track.
Where FV = future value at retirement, PV = current savings, r = monthly return rate, n = months until retirement, PMT = monthly contribution.
Starting to invest at 25 vs 35 can mean 2x more retirement savings due to compound interest.
Always maximize your employer 401(k) match — it's essentially free money you're leaving on the table.
A common rule: aim for 10-12× your pre-retirement annual income. If you earn $80,000, target $800,000-$960,000. A more precise method: estimate annual retirement expenses (typically 70-80% of pre-retirement income), multiply by 25 (based on 4% withdrawal rate). For $60,000/year in retirement: $1.5 million needed. Don't forget healthcare costs — the average retired couple spends $315,000+ on health expenses.
As early as possible. Starting at 22 vs. 32 can nearly double your retirement savings due to compound interest. Example at 8% return, investing $400/month: Start at 22 → $1,398,000 by 65. Start at 32 → $638,000 by 65. Starting at 42 → $275,000 by 65. Even $50/month at age 22 is better than waiting for the 'perfect' time. The best time to start is now.
Social Security replaces about 40% of pre-retirement income for average earners. You can claim at 62 (reduced benefits, ~70% of full amount), full retirement age 66-67 (100%), or delay to 70 (124-132% of full amount). Each year you delay past full retirement age adds ~8% to your benefit. For a couple, coordinate claiming strategies — often one spouse delays to maximize the survivor benefit.
Priority order: 1) 401(k) up to employer match (free money). 2) Max out Roth IRA ($7,000/year, or $8,000 if 50+). 3) Max out remaining 401(k) ($23,500 limit). 4) HSA if eligible ($4,300 individual/$8,550 family — triple tax benefit). 5) Taxable brokerage account. Having both pre-tax (401k) and post-tax (Roth) accounts gives you tax flexibility in retirement.
It's not too late. Strategies: Max out all catch-up contributions (401k: extra $7,500 if 50+, IRA: extra $1,000). Aggressively cut expenses and redirect to investing. Consider delaying retirement by 2-3 years — this both adds savings years and reduces withdrawal years. At 50 with $200,000 saved, contributing $2,500/month at 7% return gets you to $1.1 million by 65.