August 2026
Retirement is one of the few things in life almost everyone looks forward to, triggering thoughts of mornings without an alarm, more time with the grandkids, and extra time to take that trip you've been planning for years. It’s a chance to finally pick up the hobby, volunteer work, or adventure you've been putting off.
The vision is exciting but turning it into reality takes more than wishful thinking. It takes a retirement plan. And according to the Schroders 2025 U.S. Retirement Survey,1 more than half of Gen Xers haven't done any formal retirement planning at all. The good news? The financial tools available right now — especially for workers over 50 — are more powerful than most people realize. And it's not too late to put them to work.
How Much Money Do You Need to Retire?
A common guideline says to plan for 70–80% of your pre-retirement income to maintain your lifestyle in retirement. That's a useful starting point, but the real number depends on your life, not a rule of thumb. The best way to find that number is to build a simple picture of what your actual annual expenses will look like.
Start with essentials, such as housing, groceries, utilities, and transportation. Will you still be carrying a mortgage into retirement? What about any outstanding debt, like car loans, credit cards, or student loans? These expenses don't disappear when the paychecks stop.
Next, factor in the costs that are easy to overlook. Healthcare is typically the biggest overlooked retirement expense. Even with Medicare, out-of-pocket costs for premiums, copays, prescriptions, and dental or vision care can add up quickly. And don’t forget about the lifestyle spending that makes retirement enjoyable: travel, dining out, hobbies, and gifts.
Once you have an estimated annual total, multiply it by the number of years you expect to be retired. A 65-year-old today could easily spend 20–25 years in retirement, so plan for longevity.
Now start bringing that number down. Use the Social Security Quick Calculator2 to estimate your Social Security retirement benefits and deduct that from the total along with any pension income. What's left is the retirement savings gap – the amount your personal savings and investments will need to fill.
If this math feels overwhelming, that's completely normal — and it's exactly the moment a financial advisor can help. Getting a professional set of eyes on your numbers can turn uncertainty into a clear, step-by-step plan.
Contribute All You Can Now
2026 Retirement Account Contribution Limits were increased across the board and workers over 50 get even more room to save. Here's what you can put away this year:
High earners note: Starting in 2026, if you earned more than $150,000 in FICA wages in 2025,
the catch-up portion of your 401(k) contributions (the amount above $24,500) must be made as Roth (after-tax).
The standard $24,500 limit is unaffected. Check with your plan administrator for details.
Sources: IRS Notice 2025-673
That “Age 60–63 Super Catch-up Limit” for 401(k)s is one of the most significant savings opportunities available to older workers right now.
Remember, if your employer offers a 401(k) match, always contribute enough to capture the full match first. It's an immediate, guaranteed return on your money. And it’s basically free money.
Using an HSA as a Retirement Savings Tool
If you're enrolled in a high-deductible health plan (HDHP), your Health Savings Account (HSA) is a triple-tax-advantaged tool: contributions are pre-tax, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. After age 65, you can use HSA funds for any purpose, so it functions like a second IRA. Healthcare is one of the biggest expenses in retirement, so building this account now helps you protect the savings earmarked for everything else.
Your Next Step
Pick one action this week. Sit down and sketch out your estimated annual retirement budget. Even a rough draft puts you ahead of most people. Check your current 401(k) contribution rate and max it out as much as you can. Log into SSA.gov4 to review your earnings record. If you’re not sure where to begin, schedule a conversation with a financial advisor.
The retirement you're looking forward to is absolutely within reach. It just starts with a plan and the best time to make one is right now.