Forget the magic number “65.” These days, retirement looks different for everyone and waiting until some arbitrary age isn’t always the right move. Some people retire comfortably at 55, while others delay into their late 60s. The real question isn’t when society says you should retire; it’s when you can retire comfortably.
According to a recent survey, 75% of Americans don’t know how much they need to retire comfortably. If you’ve been wondering the same thing, this guide is for you. We’ll feature simple tools and steps to help you find your retirement number and achieve it, so you can retire the way you want.
What Is Retirement Planning?
Retirement planning is the process of making sure you’ll have enough money to live comfortably once you stop working. It’s not just about saving a big number; it’s about knowing how much income you’ll need, where that income will come from, and how long it needs to last.
At its core, retirement planning answers three main questions:
- When can I afford to stop working?
- How much will I need each year in retirement?
- How do I make sure I don’t outlive my money?
Good retirement planning looks at your full financial picture, including your income, expenses, debt, investments, Social Security, and healthcare costs. It also considers your goals. Do you want to travel? Downsize? Help support your grandkids? Your plan should reflect how you want to live, not just what a calculator says.
When to Start Planning for Retirement?
The best time to start planning for retirement is today. The earlier you start, the faster you’ll achieve your retirement goal. That’s because time is your biggest advantage. The more time your money has to grow, the less you have to save each month to reach your goal.
But if you’re starting later, don’t panic. You can still catch up. It just takes a more focused plan. Many people don’t get serious about retirement until their 40s or 50s, when the finish line feels closer and real-life expenses (mortgage, college tuition, etc.) start easing up.
How Much Do You Need To Retire?
Everyone’s retirement number is different. A common rule of thumb is that you’ll need 70% to 80% of your pre-retirement income to maintain your lifestyle. But that’s just a starting point. Your actual number depends on things like:
- Your planned lifestyle
- Whether you’ll carry debt into retirement
- How long you plan to stay in the workforce
- Your health and expected healthcare costs
- Where you’ll live (cost of living matters a lot)
- How long you expect retirement to last
If you want a quicker shortcut, some financial planners recommend the 4% Rule. Take your annual income goal and multiply it by 25. So, if you want $60K/year, that means you’ll need roughly $1.5 million saved.
That said, rules of thumb are helpful, but they’re not personal. A customized retirement plan based on your income sources, goals, and timeline is always better. Plan your retirement with us.
What Are the Best Ways to Save for Retirement?
The earlier you start saving, the faster you’ll achieve your retirement goal, thanks to the power of compounding. Starting in your 20s or 30s gives your money more time to grow through compounding, and small amounts can turn into big results over time.
But if you’re starting in your 40s or 50s, don’t panic. You still have options, and with focused effort, you can make major progress. Here are some of the best ways to save for retirement:
Employer-Sponsored Plans (like a 401(k))
If your job offers a 401(k), use it—especially if they match your contributions. That match is free money. Try to contribute at least enough to get the full match, and increase your contribution over time if you can. These plans also come with tax advantages: you don’t pay taxes on the money you put in (until you withdraw it in retirement).
Individual Retirement Accounts (IRAs)
IRAs are personal retirement accounts that you can open on your own, separate from your employer. They’re a great option if you’re self-employed, don’t have a 401(k) at work, or just want to save extra for retirement. You can set up a traditional or Roth IRA.
- Traditional IRA: Your contributions may be tax-deductible, which means you could lower your taxable income now. Your money grows tax-deferred, and you’ll pay taxes when you withdraw it in retirement. This can be helpful if you expect to be in a lower tax bracket later in life.
- Roth IRA: A Roth IRA works the opposite. You contribute after-tax dollars now, but your money grows tax-free, and you won’t pay any taxes on qualified withdrawals in retirement. That’s a big deal, especially if you think your tax rate will be higher in the future or you want more flexibility with your income in retirement.
In 2025, you can contribute up to $7,000 to an IRA (or $8,000 if you’re 50 or older). IRAs also offer a wide range of investment choices, including stocks, bonds, and mutual funds, so you can tailor your investments to your goals and risk tolerance.
Just be aware that Roth IRAs have income limits for eligibility, so check the latest IRS guidelines if your income is higher.
Health Savings Account (HSA)
If you have a high-deductible health plan, an HSA can double as a retirement tool. You get triple tax benefits:
- Contributions are tax-deductible
- Growth is tax-free
- Withdrawals for medical expenses are also tax-free
After age 65, you can withdraw HSA funds for any reason without penalty (though you’ll pay income tax if it’s not for healthcare).
Brokerage Accounts
Once you’ve maxed out your tax-advantaged accounts, a regular brokerage account gives you more flexibility. Brokerage accounts are regular investment accounts you can open with companies like Fidelity, Charles Schwab, Vanguard, E*TRADE, or TD Ameritrade. There’s no limit on how much you can invest or when you can access your money. You just don’t get the same tax benefits.
Catch-Up Contributions
If you’re 50 or older, you’re allowed to make extra “catch-up” contributions to your retirement accounts. In 2025, that means up to $23,000 in a 401(k) and $8,000 in an IRA. These higher limits are a great way to boost your savings later in life, especially if you got a late start or want to maximize your final working years. Even a few extra thousand dollars a year can add up quickly with compounding.
Plan Your Retirement With Financial Experts.
A solid retirement plan is too important to leave to guesswork or online calculators. Working with a financial advisor can help you create a retirement strategy that fits your retirement goals, income, and lifestyle.
At Griffiths, Dreher & Evans, PS, our team of experienced CPA investment advisors can help you:
- Calculate how much you’ll need to retire comfortably
- Maximize tax-advantaged savings options
- Strategically time your retirement date
- Understand your Social Security and Medicare options
- Plan for healthcare, inflation, and income distribution
Contact Griffiths, Dreher & Evans, PS, CPAs today to schedule a free discovery meeting and start planning your retirement with confidence.
*Disclaimer: Investment advisory services are provided by Griffiths, Dreher & Evans, PS, CPAs, a registered investment adviser. Past performance does not guarantee future results. Planning outcomes depend on individual circumstances.
Frequently Asked Questions
What’s a good age to retire?
The ideal age to retire depends on your finances, health, and goals. Some retire comfortably at 55, others wait until 67 or beyond. What’s important is knowing when you can afford to retire without running out of money.
How much money should I have saved by 60?
A common benchmark is 6–11 times your annual income by age 60. But it’s always different for everyone. The right number depends on your lifestyle, location, and whether you’ll have other income sources like Social Security or a pension.
Is Social Security enough to retire on?
For most people, no. The average Social Security benefit in 2024 is about $1,900 per month. That’s roughly $23,000 a year, which is barely enough to cover basic expenses in many parts of the country.
Social Security is meant to supplement your income, not replace it. You’ll likely need personal savings, a pension, or other income sources to retire comfortably.
What if I’m behind on retirement savings?
Start by getting clear on your current savings, cut unnecessary expenses, increase contributions, and take advantage of catch-up limits if you’re 50 or older. A CPA financial advisor from our firm can help you build a realistic catch-up plan.
How do I know if I’m on track to retire?
You’re on track if your projected retirement income (from savings, Social Security, pensions, etc.) can comfortably cover your estimated expenses for at least 25–30 years.