The Retirement Report Card: Where Do You Stand?

Let’s start with the honest truth: most people are failing retirement readiness. Only 20% of people are doing okay, while 34% are borderline, 30% are at risk, and 20% are way off track.

That’s a wake-up call—but also an opportunity. If you know where you stand, you can take steps to fix it. And that starts with asking the right questions.

What You Need to Know (and Track)

You’ve probably heard the big questions before:

• How much do I need to save?
• Am I saving enough right now?
• When can I retire?
• What will my monthly expenses look like?

But here’s the thing—these aren’t just questions. They’re the foundation of your retirement strategy. And if your expense estimates are off or you’re not thinking about taxes, your whole plan can get derailed.

Taxes, especially, are a big deal in retirement. You might think you have $1 million saved, but how much of that will the IRS take? You need a tax strategy that protects your savings.

Setting the Right Targets

Savings goals should be based on what you want your retirement to look like. What are your annual expenses? What income sources will you have? Your net worth matters here—but remember, there’s a difference between liquid assets (like IRAs and 401(k)s) and personal assets (like your home or car).

Home equity is part of the equation, but unless you’re planning to downsize or take out a reverse mortgage, it’s not a spendable asset in most cases.

Overcoming Common Savings Challenges

Look, we get it—53% of people say they can’t afford to save more, and 19% say they don’t even know where to begin. The solution? Pay yourself first. Automate your savings. If your employer offers a match, take it. Increase your contribution every time you get a raise. Save your bonuses. Just start. You can’t afford not to.

How Does Your Generation Compare?

Here’s how average retirement savings break down by generation:

• Boomers: $400,000+
• Gen X: $200,000
• Millennials: $100,000
• Gen Z: $35,000

Given their ages, Millennials and Gen Z are doing surprisingly well—but there’s always room for improvement. Fidelity recommends having six times your annual salary saved by age 50, so benchmark yourself and make adjustments.

Boost Your Retirement Readiness

Want to boost your grade? Try this:

• Set a savings goal based on your target retirement age.
• Automate your savings.
• Take full advantage of employer matches.
• Cut back on big discretionary expenses (like new cars or luxury travel).
• Focus on consistency, not perfection.

Portfolio Construction: Diversify and Align

A solid retirement portfolio includes a mix of U.S. and international stocks, bonds, and short-term investments. Younger investors can lean more aggressively into equities, while those approaching retirement should take a more balanced, conservative approach.

The right mix depends on your goals, risk tolerance, and how much you need your investments to grow.

How Much Can You Safely Withdraw?

Let’s talk strategy. The general rule of thumb is a 4% withdrawal rate from your retirement portfolio to help your money last. But this can vary. More aggressive portfolios might allow you to withdraw 6% or 7%—but that also comes with higher risk. You could run out of money if the market turns against you.

Navigating Market Volatility: Rebalance, Don’t Panic

We got a great question from Cindy about adjusting portfolios during a market downturn. Our answer? Rebalance—don’t panic. Rebalancing is a smart way to keep your strategy on track by selling high and buying low.

Trying to time the market usually backfires. Stick with your long-term plan and make strategic adjustments—not emotional ones.

Final Thoughts

If you’re feeling like your retirement grade isn’t where it should be—don’t panic. The goal isn’t to be perfect. It’s to be prepared. A good plan considers your savings, expenses, taxes, and investments—and keeps adjusting as your life changes.

So go ahead—grade yourself. And if you’re coming up short, take one step today to improve your score.

Until next time,
Joe Anderson, CFP®
Co-Host of Your Money, Your Wealth

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

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