It’s a question that most professionals ask as they advance in their careers: “Am I saving enough for retirement?” 

While no two retirement journeys are the same, there are clear benchmarks, financial tools, and strategies that can help determine whether you’re on pace to meet your long-term goals.

In this guide, we’ll walk through how to assess where you stand today, identify potential gaps, and make smart, strategic adjustments to help ensure the future you’re planning for becomes a reality.

1. Consider Retirement Savings Benchmarks 

A simple starting point is comparing your current savings to general benchmarks based on income:

  • By age 40: approximately 3× your annual salary
  • By age 50: approximately 6× your annual salary
  • By age 60: approximately 8–10× your annual salary

Of course, these percentages are not universal. Your cost of living, retirement age, lifestyle, and even your life expectancy will influence how much money you need in your nest egg.

2. Estimate Your Future Income Needs

While benchmarks show where your savings should be, estimating your actual income needs in retirement gives you a clearer picture of how much you’ll need to spend each year. Start by projecting your future expenses, including:

  • Housing costs (mortgage, rent, taxes, maintenance)
  • Healthcare and long-term care expenses
  • Travel and leisure activities
  • Everyday living expenses and inflation adjustments

If you’re unsure where to begin, retirement calculators — such as those offered by Fidelity Investments — can help you estimate your future income needs.  Once you have an estimated annual income target, withdrawal strategies can help you determine how much you’ll need to support that spending level over the course of retirement. One common rule of thumb is the 4% rule, which assumes you can withdraw 4% of your portfolio each year over a 30-year retirement.

However, this should only be used as a starting point, not a definitive strategy. Discover more about the limitations of the 4% rule and other ways to gauge how much you need to save.

3. Assess Your Current Retirement Portfolio

Your retirement progress hinges not only on how much you save, but also on where that money is held. Review all retirement accounts and assets, including:

  • 401(k) and Roth IRA accounts
  • Traditional Individual Retirement Accounts (IRAs)
  • Brokerage accounts, savings accounts, and other investments
  • Real estate holdings and private equity investments

Pay close attention to tax diversification. Balancing pre-tax, Roth, and taxable accounts can provide flexibility in retirement and help manage your tax rate during withdrawal years.

4. Take Advantage of Contribution Limits & Catch-Up Opportunities

If you’re in your peak earning years, this is the time to prioritize your retirement savings. In 2025, contribution limits are:

  • 401(k): $23,500, with an additional $7,500 catch-up for those 50+
  • IRA: $7,000, with a $1,000 catch-up option for those 50+

If you’re eligible, a Health Savings Account (HSA) can be a valuable tax-advantaged tool. For 2025, the HSA contribution limit is $4,300 for individuals, with a $1,000 catch-up contribution allowed for those age 55 and older.

5. Evaluate & Rebalance Your Investment Strategy

Your retirement strategy should extend beyond savings to include a disciplined investment strategy that reflects your goals, time horizon, and risk profile.

An effective portfolio typically includes a mix of asset classes, such as:

  • Equities, to drive long-term growth
  • Fixed income instruments, to provide income and reduce volatility
  • Alternative investments, where appropriate, for additional diversification

As you near retirement, regularly revisit your investment mix to ensure it aligns with your evolving goals and income needs.

6. Incorporate Social Security & Pensions Into Your Strategy

Retirement income often includes more than just your investment portfolio. Factor in:

  • Social Security (delaying benefits to age 70 can boost payouts)
  • Employer pension options and annuity payouts
  • Rental income, part-time work, or business interests

Coordinating these income streams with your withdrawal strategy can help reduce the burden on your investments, especially during market downturns.

7. Plan for Healthcare & Long-Term Care Expenses

Healthcare is one of the most significant yet unpredictable retirement costs. Your plan should account for:

  • Medicare and supplemental coverage
  • Insurance options for long-term care or disability
  • A dedicated reserve fund for unplanned medical expenses

The average American couple could need upwards of $400,000 to cover healthcare in retirement. Planning for these costs now will help protect your savings, preserve your lifestyle, and reduce financial stress in the years when you may need care the most.

8. Stress-Test Your Retirement Plan

Running a retirement readiness analysis, or “stress test,” can help ensure your plan holds up under various real-world scenarios, from market downturns and recessions to unexpected healthcare needs.

While plenty of simulation tools are available online, those with larger portfolios and layered income strategies can benefit from a financial advisor with the expertise and technology to run more complex scenarios and provide tailored advice.

Still Wondering If You’re on Track? Let’s Find Out.

At Ironwood Wealth Management, we help individuals and families create comprehensive, personalized financial plans that support a secure and fulfilling retirement. Whether you need help optimizing your portfolio, managing risk, planning for taxes, or aligning your income streams with your lifestyle goals, our experienced advisors are here to guide you every step of the way.

Schedule a consultation today and start building a retirement plan that gives you peace of mind and the freedom to live the life you’ve worked so hard to build.