Am I Saving Enough for Retirement? How to Know and What to Do Next

If you’ve ever wondered, “Am I saving enough for retirement?”—you’re not alone. For many individuals and families, planning for retirement can feel overwhelming, especially when life is busy with more immediate financial priorities. But the truth is, the sooner you evaluate your retirement readiness, the more control you’ll have over your future. At Avalon Tax & Financial Services, we believe a clear, personalized plan can take the stress out of retirement and replace it with confidence.

Start by Defining Your Retirement Goals

Before you can determine whether you're saving enough, it’s essential to define what retirement actually looks like for you. Do you want to retire at 60 or 70? Will you maintain your current lifestyle, downsize, or travel the world? Everyone’s version of retirement is different. A good starting point is estimating that you’ll need 70% to 80% of your pre-retirement income each year. However, this estimate should be adjusted based on your specific goals, expected expenses, and life circumstances. A personalized plan is far more reliable than relying on generic online calculators.

Take Inventory of Your Current Savings

Once you’ve clarified your goals, it’s time to assess your current retirement savings. This includes any 401(k), 403(b), TSP, IRA, Roth IRA, pensions, or other investment accounts earmarked for retirement. Don’t forget to factor in your expected Social Security benefits, though we recommend not depending solely on them for your retirement income. Knowing where you stand today is key to planning where you need to go next. If this step feels overwhelming, our advisors at Avalon Tax can help you organize your accounts and provide a clear picture of your progress.

Understand the Power of Time and Compounding

The earlier you start saving, the more your money can grow thanks to compound interest. Even modest monthly contributions made consistently over time can significantly impact your retirement nest egg. For example, someone saving $400 a month starting at age 30 could potentially accumulate more than someone saving $700 a month starting at age 45. But even if you’re starting later, it’s not too late—strategic adjustments now can still make a big difference. That’s why evaluating your time horizon is an important part of retirement planning.

Don’t Overlook Inflation and Healthcare Costs

Many people underestimate how inflation can erode purchasing power over time. What seems like enough money today might fall short 20 or 30 years from now. Healthcare, in particular, can be a major expense in retirement—especially if you retire before qualifying for Medicare. A well-rounded retirement plan should account for inflation and include contingency planning for medical needs, long-term care, and unexpected expenses. At Avalon Tax, we help clients build these critical factors into their strategies to avoid unpleasant surprises down the road.

Maximize Contributions and Use Catch-Up Strategies

If you suspect you're behind on retirement savings, there are still powerful tools available to help you catch up. Take full advantage of employer-sponsored plans like 401(k)s and contribute enough to get the full company match—this is essentially free money. If you're 50 or older, you can make additional “catch-up” contributions to both 401(k)s and IRAs. Increasing your contribution rate, even by 1–2% each year, can lead to big gains over time. We can work with you to determine the right amount based on your income, expenses, and future needs.

Why Tax Planning Is Key to Retirement Readiness

Retirement planning isn’t just about how much you save—it’s also about how you withdraw those savings. Taxes can significantly impact your retirement income, which is why tax strategy is a core component of what we do at Avalon Tax. Understanding the differences between Roth and Traditional accounts, knowing when and how to take distributions, and planning for required minimum distributions (RMDs) can help you keep more of your money in retirement. Our advisors integrate tax planning into every retirement strategy to maximize your long-term financial security.

It’s Never Too Late to Take Control

If you're feeling behind, don't panic. There are always steps you can take to improve your financial future. Whether it’s cutting unnecessary expenses, delaying retirement by a few years, or investing more strategically, small changes now can lead to significant benefits later. The most important thing is to stop guessing—and start planning. With a personalized retirement plan from Avalon Tax, you don’t have to wonder if you’re saving enough. You’ll have a clear roadmap, year-round support, and peace of mind knowing you’re making smart choices.

Take the Next Step with Avalon Tax

At Avalon Tax & Financial Services, we believe your retirement should be something to look forward to—not something to worry about. If you’re ready to take the guesswork out of your financial future, we’re here to help. Contact us today to schedule your retirement planning consultation and let’s create a strategy that brings clarity, security, and peace of mind.