Introduction: Retirement Isn’t a Date, It’s a Strategy
Retirement isn’t just about reaching a certain age or crossing a dollar threshold; it’s about creating a strategy that gives you the freedom to choose when and how you step into the next chapter of your life.
For many, retirement can feel distant or even overwhelming. But like any major life goal, it becomes achievable when broken down into manageable steps over time. Whether retirement is 25 years away or just around the corner, the path to a confident and comfortable retirement starts with preparation. The truth is, the steps you take in your 40s and 50s can define the freedom you enjoy in your 60s and beyond.
In this post, we break down the essential actions you should be taking by decade to stay on track, or get back on track, for retirement.
In Your 40s: Build Momentum
Your 40s are often your peak earning years, but also some of your most financially demanding. That’s why this decade is about consistency, clarity, and maximizing your plan.
What to Focus On:
- Supercharge your 401(k) savings: Combine your contributions with your employer match to achieve an annual savings rate of at least 15% of your income.
- Consolidate old retirement accounts: Rollover previous 401(k)s into your current plan or an IRA to simplify and optimize.
- Build a budget aligned with long-term goals: Pay down debt, reduce lifestyle inflation, and increase savings.
- Estimate your retirement number: Know how much you’ll likely need and whether you’re on track to get there.
- Review life insurance coverage: Ensure your family, mortgage, and long-term obligations are protected if something unexpected happens.
- Establish your initial estate plan: Establish a basic estate plan, including a will, healthcare directive, and power of attorney to protect your loved ones.
In Your 50s: Get Intentional
This is your decade to fine-tune your strategy. Retirement is no longer an abstract goal; it’s a real event that’s getting closer. Use this time to test assumptions, catch up, and make course corrections.
What to Focus On:
- Catch-up contributions: At 50, you can contribute an extra $7,500 per year to your 401(k) and an extra $1,000 per year to your IRA.
- Stress test your retirement plan: Run projections with a financial advisor to see how inflation, market volatility, or health care costs could impact your timeline.
- Refine your asset allocation: Make sure your investments reflect your time horizon and risk tolerance.
- Evaluate Social Security strategy: Start understanding when and how to claim benefits for the highest lifetime payout.
- Explore Roth conversions: A lower income year may be the perfect time to convert some traditional retirement assets to Roth.
- Start thinking about income, not just assets: Begin exploring how your investments will eventually convert into sustainable income.
In Your 60s and Beyond: Lock It In
If you’re in your 60s, it’s time to turn strategy into action. This is where decisions carry real weight. Small adjustments now can make a big difference in long-term security.
What to Focus On:
- Confirm your retirement date and income plan: Identify all income sources: Social Security, pensions, investment withdrawals, annuities. Then create a distribution strategy.
- Understand Required Minimum Distributions (RMDs) : Know when and how much you’ll be required to withdraw from traditional retirement accounts.
- Review Medicare, supplemental healthcare coverage, and long-term care options.
- Simplify and consolidate accounts: The fewer moving parts, the easier retirement becomes to manage.
- Review your legacy and estate plans: Wills, powers of attorney, and beneficiary designations should be current and aligned with your wishes.
Final Thoughts: It’s Never Too Late or Too Early
No matter your age or financial situation, the path to retirement is shaped by the decisions you make today. It’s not about being perfect, it’s about being intentional. Every contribution, every plan update and every conversation you have with a Financial Advisor gets you closer to the freedom and peace of mind you want in retirement.
The sooner you start, the better your outcome tends to be. But even if you’re behind, there are steps you can take to improve your situation.
Working with a trusted advisor can help you create a personalized, tax-smart plan that aligns with your goals, values, and timeline.
Let’s Build Your Plan Together
At Trajan Wealth, we specialize in helping people like you turn uncertainty into clarity. If you’re wondering whether you’re on track, or how to get there, we’re here to help you:
- Understand how much you need in retirement.
- Maximize retirement accounts.
- Create sustainable income strategies.
- Plan for taxes, health care, and legacy goals.
Let’s build your roadmap to retirement, one step at a time.
Schedule a complimentary retirement checkup today and take the first step toward the future you’ve worked hard to build.
