Assess Current Position
1-2 hoursInventory all retirement accounts, pensions, Social Security estimates, and current savings rate to establish your starting point.
AdvancedOngoing (review annually)
Retirement Planning Guide
Retirement planning workflow to assess savings gaps, project future income, optimize account contributions, and build a sustainable withdrawal strategy.
pre-retireesmid-career professionalsearly retirement planners
Workflow
Set Retirement Goals
1 hourDefine your target retirement age, desired lifestyle, and estimated annual expenses in today's dollars.
Calculate Savings Needed
30-60 minutesUse compound growth projections to determine the nest egg required and monthly contribution to reach your goal.
Choose Account Types
1-2 hoursOptimize tax-advantaged accounts (401k, IRA, Roth IRA, HSA) based on current and expected future tax brackets.
Invest and Automate
OngoingSelect an asset allocation aligned with your timeline, set up automatic contributions, and rebalance periodically.
Monitor and Adjust
1 hour/yearReview progress annually, adjust for life changes, inflation, and market conditions to stay on track.
Tools Used
- Retirement CalculatorPrimary
Project retirement savings balance at target age based on current savings and contributions. · Determine monthly savings needed to reach your retirement nest egg target. · Annual progress check — are you on track to hit your target?
- Savings CalculatorPrimarySupporting
Calculate current savings rate as a percentage of income. · Compare contribution limits and tax benefits across account types.
- Inflation CalculatorPrimarySupporting
Adjust future expense targets for inflation over your working years. · Adjust retirement income needs for current inflation rates.
- Budget CalculatorSupporting
Estimate retirement living expenses from current spending patterns.
- Compound Interest CalculatorPrimarySupporting
Visualize how compound growth accelerates savings over decades. · Show impact of increasing automatic contributions over time.
- Investment Return CalculatorPrimarySupporting
Model different return assumptions (conservative vs aggressive) on final balance. · Project portfolio growth under chosen asset allocation.
Checklist
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Assessment
Goals
Planning
Contributions
Tax Strategy
Legal
Monitoring
Reference Materials
Retirement Account Contribution LimitsTable
Annual contribution limits for tax-advantaged accounts. Limits are indexed for inflation and updated each tax year.
| Account Type | 2024 Limit (Under 50) | Catch-Up (50+) | Tax Treatment |
|---|---|---|---|
| 401(k) | $23,000 | +$7,500 | Pre-tax or Roth |
| Traditional IRA | $7,000 | +$1,000 | Pre-tax (deductible) |
| Roth IRA | $7,000 | +$1,000 | After-tax (tax-free growth) |
| HSA (individual) | $4,150 | +$1,000 | Triple tax-free |
Suggested Asset Allocation by AgeTable
A common rule of thumb is to hold (100 minus your age)% in stocks, with the remainder in bonds. Adjust based on risk tolerance.
| Age Range | Stocks | Bonds | Cash/Alternatives | Risk Level |
|---|---|---|---|---|
| 20-35 | 80-90% | 10-20% | 0-5% | Aggressive |
| 36-50 | 70-80% | 20-30% | 0-5% | Moderate-Aggressive |
| 51-60 | 60-70% | 30-40% | 0-5% | Moderate |
| 61-70 | 40-60% | 40-50% | 5-10% | Conservative-Moderate |
| 70+ | 30-50% | 40-60% | 5-10% | Conservative |
Social Security Full Retirement AgeStandard
Your full retirement age (FRA) determines your baseline benefit. Claiming early reduces benefits permanently; delaying increases them up to age 70.
Start Early, Even Small
Contributing $200/month from age 25 at 7% return grows to ~$525,000 by 65. Starting at 35 requires $420/month for the same result.
Beware of Early Withdrawal Penalties
Withdrawing from 401(k) or IRA before age 59½ triggers a 10% penalty plus income tax. Explore 72(t) SEPP or Roth conversion ladders instead.
Delay Social Security if Possible
Each year you delay claiming past FRA increases benefits by ~8% until age 70. For healthy individuals, delaying often maximizes lifetime income.
Automate Everything
Set up automatic payroll deductions and annual contribution increases. Investors who automate save 2-3x more than those who contribute manually.
Safety Notes
- Never withdraw retirement funds for non-emergency expenses — early withdrawal penalties and lost compounding can cost hundreds of thousands over a lifetime.
- Be wary of financial products with high fees (loaded mutual funds, annuities with surrender charges) that erode long-term returns.