Retirement Planning Checklist
Decade-by-decade roadmap with specific savings targets, account strategies, and a withdrawal plan. Know exactly where you stand and what to do next.
Retirement Savings Milestones
Based on Fidelity's widely cited benchmarks. “Multiple” means times your annual salary. Example assumes $75,000 salary.
Start Early. Time Is Your Greatest Asset
Starting at 25 instead of 35 with $500/month at 7% returns means $600,000 more at age 65. The math is unforgiving: every year you wait costs you significantly.
- Enroll in your employer's 401(k) on day one. Contribute at least enough to get the full employer match (that is 50-100% instant return)
- Open a Roth IRA and aim to max it out ($7,000/year in 2025). Your tax rate is likely lowest now
- Choose a target-date fund or simple 3-fund portfolio if you do not want to manage investments
- Set contributions to increase automatically by 1% each year until you reach 15%
- Understand the difference between Roth (pay tax now, grow tax-free) and Traditional (deduct now, pay tax later)
- Name beneficiaries on all retirement accounts
- Avoid cashing out old 401(k)s when changing jobs. Roll them into an IRA
Accelerate. Build Real Wealth
Target: 1x salary by 30, 2x by 35, 3x by 40. This is the decade where consistent saving creates a visible snowball effect.
- Increase 401(k) contributions to 15% of gross income (including employer match)
- Max out both 401(k) ($23,500 in 2025) and IRA ($7,000) if possible
- Open an HSA if eligible. It is a triple-tax-advantaged retirement account ($4,300/$8,550 limits in 2025)
- Start a taxable brokerage account for savings beyond tax-advantaged limits
- Get term life insurance (10-12x income) and disability insurance to protect your earning years
- Review and rebalance your portfolio annually. Do not let one asset class dominate
- Calculate your FIRE number if early retirement interests you (typically 25x annual expenses)
- Consider Roth conversions if you have a low-income year (job transition, sabbatical)
Optimize. Peak Earning Years
Target: 3x salary by 40, 4x by 45. You are likely earning more now than ever. Resist lifestyle inflation and channel raises into savings.
- Max out every tax-advantaged account available: 401(k), IRA, HSA
- Run a retirement projection with realistic assumptions (use our calculator below)
- Balance retirement savings with other goals: college funding, mortgage payoff
- Review your asset allocation. Shift gradually from aggressive growth toward a balanced mix
- Consider a mega backdoor Roth if your 401(k) plan allows after-tax contributions
- Consolidate old retirement accounts for simpler management and lower fees
- Create or update your estate plan: will, power of attorney, healthcare directive
- Evaluate long-term care insurance. Premiums are lowest when purchased in your 40s-50s
- Calculate your Social Security benefit estimate at ssa.gov
Sprint. Catch-Up Contributions Unlocked
Target: 6x salary by 50, 7x by 55. Catch-up contributions let you add an extra $7,500/year to your 401(k) and $1,000/year to your IRA starting at age 50.
- Use catch-up contributions: 401(k) limit becomes $31,000/year, IRA becomes $8,000/year (2025)
- Model your retirement income from all sources: Social Security, pensions, 401(k)/IRA, taxable accounts
- Estimate healthcare costs. Average couple needs $315,000+ for medical expenses in retirement (Fidelity 2024)
- Develop a tax-efficient withdrawal strategy: which accounts to tap first matters enormously
- Consider Roth conversions during lower-income years to reduce future RMDs
- Pay off your mortgage before retirement if it fits your cash flow plan
- Do a trial run: live on your projected retirement budget for 3-6 months
- Review Social Security claiming strategies. Delaying from 62 to 70 increases benefits by ~77%
- Update estate documents and ensure all beneficiary designations are current
- Research Medicare: understand Parts A, B, C, D, and Medigap supplemental plans
Execute. Make Your Money Last
Target: 8x-10x+ salary saved. The focus shifts from accumulation to distribution: how to draw down efficiently and make your money last 30+ years.
- Choose your Social Security claiming age. Each year you delay past 62 increases benefits ~8% (up to age 70)
- Enroll in Medicare during your Initial Enrollment Period (3 months before to 3 months after turning 65)
- Begin Required Minimum Distributions (RMDs) at age 73 from traditional 401(k)/IRA (SECURE 2.0 Act)
- Implement a withdrawal strategy: commonly draw from taxable accounts first, then tax-deferred, then Roth last
- Use Qualified Charitable Distributions (QCDs) from your IRA to satisfy RMDs tax-free if you are charitably inclined
- Keep 1-2 years of expenses in cash/short-term bonds to avoid selling investments during market downturns
- Review your portfolio allocation. A common guideline is your age in bonds, but adjust for your risk tolerance
- Monitor withdrawal rate. The traditional 4% rule suggests withdrawing 4% of your portfolio in year one, adjusted for inflation
- Consider a partial annuity to create historically reliable income alongside Social Security
- Review estate plan annually. Update beneficiaries, trusts, and healthcare directives
Withdrawal Strategy Comparison
The order you withdraw from accounts significantly affects how long your money lasts and how much you pay in taxes.
Traditional: Taxable → Tax-Deferred → Roth
Draw from taxable brokerage accounts first (lower capital gains rates), then traditional 401(k)/IRA, and preserve Roth for last. This lets Roth accounts grow tax-free the longest. Best for most retirees.
Proportional: Draw from All Accounts Equally
Withdraw proportionally from all account types each year. This smooths your tax bracket across retirement and avoids large RMD spikes. Good if you have large traditional balances.
Tax-Bracket Filling: Strategic Roth Conversions
In early retirement (before Social Security/RMDs), convert traditional IRA to Roth up to the top of a low tax bracket. Reduces future RMDs and creates tax-free income later. Requires careful planning.
Retirement Calculators
Get exact numbers for your retirement plan. These calculators turn benchmarks into personal targets.
Frequently Asked Questions
How much do I need to retire?
A common rule of thumb is 10-12x your pre-retirement salary. The more precise approach: estimate your annual retirement spending, subtract historically reliable income (Social Security, pension), and multiply the gap by 25 (the inverse of the 4% rule). For example, if you need $60,000/year and Social Security covers $24,000, you need ($60,000 - $24,000) x 25 = $900,000 in savings.
What is the 4% rule?
The 4% rule says you can withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each year, and have a very high probability (~95%) of your money lasting 30 years. On a $1 million portfolio, that is $40,000 in year one. Some recent research suggests 3.5% may be more conservative given current market conditions.
When should I claim Social Security?
You can claim as early as 62 (reduced benefit) or as late as 70 (maximum benefit). Each year you delay past your full retirement age (67 for most people) increases your benefit by 8%. If you are healthy and can afford to wait, delaying usually provides more total lifetime income. Use our Social Security optimizer to compare scenarios.
What are Required Minimum Distributions (RMDs)?
Starting at age 73 (under SECURE 2.0), you must withdraw a minimum amount from traditional 401(k) and IRA accounts each year. The amount is calculated by dividing your account balance by an IRS life expectancy factor. Roth IRAs are exempt from RMDs during the owner's lifetime. Failure to take RMDs results in a 25% penalty on the amount not withdrawn.
Should I prioritize 401(k) or Roth IRA?
Do both if you can. The optimal order: (1) 401(k) up to the employer match, (2) max out Roth IRA, (3) max out remaining 401(k). If you expect higher taxes in retirement (career growth, rising tax rates), favor Roth. If you expect lower taxes in retirement, favor traditional. Having both gives you tax diversification in retirement.