Assess Current Position
1-2 hoursInventory all retirement accounts, pensions, Social Security estimates, and current savings rate to establish your starting point.
Field context
This workflow is part of 2 niche fields
Retirement planning workflow to assess savings gaps, project future income, optimize account contributions, and build a sustainable withdrawal strategy.
Inventory all retirement accounts, pensions, Social Security estimates, and current savings rate to establish your starting point.
Define your target retirement age, desired lifestyle, and estimated annual expenses in today's dollars.
Use compound growth projections to determine the nest egg required and monthly contribution to reach your goal.
Optimize tax-advantaged accounts (401k, IRA, Roth IRA, HSA) based on current and expected future tax brackets.
Select an asset allocation aligned with your timeline, set up automatic contributions, and rebalance periodically.
Review progress annually, adjust for life changes, inflation, and market conditions to stay on track.
Project retirement savings balance at target age based on current savings and contributions. · Determine monthly savings needed to reach your retirement nest egg target. · Annual progress check — are you on track to hit your target?
Calculate current savings rate as a percentage of income. · Compare contribution limits and tax benefits across account types.
Adjust future expense targets for inflation over your working years. · Adjust retirement income needs for current inflation rates.
Estimate retirement living expenses from current spending patterns.
Visualize how compound growth accelerates savings over decades. · Show impact of increasing automatic contributions over time.
Model different return assumptions (conservative vs aggressive) on final balance. · Project portfolio growth under chosen asset allocation.
Annual contribution limits for tax-advantaged accounts. Limits are indexed for inflation and updated each tax year.
| Account Type | 2024 Limit (Under 50) | Catch-Up (50+) | Tax Treatment |
|---|---|---|---|
| 401(k) | $23,000 | +$7,500 | Pre-tax or Roth |
| Traditional IRA | $7,000 | +$1,000 | Pre-tax (deductible) |
| Roth IRA | $7,000 | +$1,000 | After-tax (tax-free growth) |
| HSA (individual) | $4,150 | +$1,000 | Triple tax-free |
Contributing $200/month from age 25 at 7% return grows to ~$525,000 by 65. Starting at 35 requires $420/month for the same result.
Withdrawing from 401(k) or IRA before age 59½ triggers a 10% penalty plus income tax. Explore 72(t) SEPP or Roth conversion ladders instead.
Each year you delay claiming past FRA increases benefits by ~8% until age 70. For healthy individuals, delaying often maximizes lifetime income.
Set up automatic payroll deductions and annual contribution increases. Investors who automate save 2-3x more than those who contribute manually.