Retirement planning has never been more critical than today. With traditional pensions fading and Social Security replacing only part of your income, taking control of your future is essential. A financially secure retirement depends on planning well before you step away from the workforce. This roadmap offers a clear sequence of steps to help you estimate your needs, select accounts, build a resilient portfolio, and make your savings last through your golden years.

Why Retirement Planning Matters Now

Longer life expectancies and rising health-care costs mean your retirement could span 2535 years. Market volatility and inflation can erode purchasing power, making it harder to maintain your desired lifestyle. To navigate these challenges, you need a multistep process of setting goals that adapts as you move through each life stage.

• Decide when to start planning and set clear targets.
• Estimate how much income you26#8217;ll need each year in retirement.
• Choose the right retirement accounts and invest wisely.
• Monitor, adjust, and rebalance your portfolio over time.

Even if you are in your 40s, 50s, or beyond, strategic catch-up measures can boost your savings and capture tax benefits such as the Saver26#8217;s Credit.

Starting Early: The Power of Compounding Growth

The sooner you begin saving, the more you benefit from compound growth in early investments. For instance, starting at age 25 instead of 45 can reduce your required annual savings by half to reach a retirement income goal of $60,000 per year. J.P. Morgan26#8217;s Guide to Retirement assumes a portfolio with a 60/40 stock-bond mix pre-retirement and a 40/60 allocation afterward, with a 2.4% inflation rate across a 35-year retirement.

However, it26#8217;s never too late to start. Late savers can increase contributions, shift to targeted investments, and leverage catch-up limits. By focusing on high-growth assets early in your catch-up phase, you can still build a substantial nest egg.

Estimating Your Retirement Needs

To maintain your lifestyle, plan to replace 70%–90% of your pre-retirement income. For someone earning $63,000 annually, this range equates to $44,000–$57,000 per year in retirement. Fidelity suggests saving at least 15% of your income, including any employer match, to meet these replacement targets.

Another way to gauge progress is through savings multiples. Although guidelines vary, a common framework recommends:

• 1× annual salary by age 30
• 3× by age 40
• 6× by age 50
• 8× by age 60

This “glide path” helps you check if you are on track to fund a multi-decade retirement.

Choosing Retirement Accounts & Tax Strategies

Your first priority should be capturing any employer match in workplace plans, then maximizing contributions to IRAs and other vehicles. Use the table below for 2025 U.S. contribution limits:

Building tax diversification between account types gives you more flexibility in retirement. Contribute to Roth accounts early if you expect higher future tax brackets, then shift to tax-deferred vehicles as your income grows.

Building an Investment Strategy Over Time

An age-based approach helps balance growth and risk. When you are younger, you can invest aggressively when young, focusing on equities to capture long-term market growth. As you near retirement, gradually increase bond exposure to protect against market downturns.

J.P. Morgan26#8217;s typical glide path transitions from a 60/40 stock-bond mix before retirement to 40/60 afterward. You might also adopt a separate buckets for specific goals strategy: one portfolio for near-term needs, another for intermediate goals, and a third for long-term growth, aligning investments with spending horizons and risk tolerance.

Sustainable Withdrawals & Income Streams

To make savings last, many advisors recommend the 4% rule: begin with a withdrawal rate of four percent of your portfolio in the first year, then adjust for inflation annually. Fidelity suggests a slightly broader range of 4%–5%, with caution if your retirement spans more than 30 years.

Stagger your income sources to reduce risk:

• Social Security benefits timed strategically
• Required minimum distributions (RMDs) from tax-deferred accounts
• Pensions and annuities for guaranteed income
• Part-time work, consulting, or rental income

This diversified approach helps smooth cash flow and reduces dependence on any single income stream.

Social Security: Timing & Pitfalls

Deciding when to claim Social Security can add thousands of dollars to your lifetime benefit. Your Full Retirement Age is typically 66–67, depending on birth year. Claiming benefits before your FRA reduces monthly payments, while delaying past FRA up to age 70 boosts benefits by roughly 8% per year of delay. Many retirees find that delay Social Security to age seventy maximizes income, especially if you have other savings to bridge the gap.

Beware of common mistakes such as forgetting spousal benefits, misunderstanding earnings limits before FRA, or making irreversible early claims. Careful modeling can reveal the optimal claiming strategy based on your health, finances, and family situation.

Next Steps: Putting Your Plan into Action

Creating a resilient retirement roadmap takes time but offers peace of mind. Start by calculating your target income, then set up automated contributions in the right accounts. Review your investments annually, rebalance as needed, and adjust withdrawal plans in retirement. Remember: catch-up contributions and tax credits can accelerate your progress if you start later.

Whether you’re in your 20s or approaching 60, today is the best day to take control. With a clear roadmap and disciplined approach, you can look forward to a retirement filled with financial freedom and lasting fulfillment.