On Track for Retirement? Here's How to Know.

Whether retirement feels like a distant goal or an approaching milestone, knowing where you stand today can make all the difference. Understanding how your savings measure up to key benchmarks and identifying any gaps early on gives you the power to make informed decisions and stay in control of your financial future.

Let’s break down what it really means to be “on track” for retirement — and how to get there.

Are You Retirement-Ready?

Retirement readiness is about having a solid financial plan that aligns with your needs, lifestyle, and timeline, and outlines the key steps you need to take to reach your retirement goals.

Checking in on your progress regularly can help you avoid two common pitfalls:

• Overconfidence: Thinking you’re saving enough when you’re not.
• Unnecessary stress: Worrying you’re behind when you’re actually doing just fine.

Retirement Benchmarks

While everyone’s situation is different, age-based benchmarks can give you a helpful starting point. These general guidelines suggest how much you should aim to have saved at different stages of life:

These numbers aren’t one-size-fits-all, but they can help you gauge whether you’re on pace. The ultimate goal? Replace about 80% of your pre-retirement income so you can maintain your current lifestyle.

Calculate Your Personal Benchmark

To see how you’re doing, you’ll need three key pieces of information:

1. Your current age
2. Your gross annual income
3. Your total retirement savings

Then, compare your savings to the benchmark for your age. If your savings fall short of the benchmark, don’t panic. This is just a snapshot and there are plenty of ways to catch up.

Also, be sure to include all sources of retirement income in your calculations, such as:

• 401(k) or 403(b) plans
• Traditional and Roth IRAs
• Pensions
• Social Security
• Other investment or savings accounts

Signs You’re on the Right Track

Beyond the numbers, there are behavioral and planning habits that signal strong retirement readiness. Ask yourself:

• Do I consistently save 10–15% of my income?
• Do I have an emergency fund for unexpected expenses?
• Do I follow a monthly budget and track my spending?
• Do I regularly review and adjust my financial plan?
• Do I work with a financial advisor or seek expert guidance?
• Do I avoid making emotional decisions with my money?

If you answered “yes” to most of these, you’re likely building a strong foundation for retirement.

Use a Retirement Calculator

Want a clearer picture of your retirement outlook? A retirement calculator can help. By entering your age, income, current savings, retirement age, and desired income in retirement, you’ll get a personalized projection of how long your savings might last — and whether you’re on track.

It’s a good idea to revisit your numbers at least once a year or whenever you experience a major life change (like a new job, marriage, or move).

Stay on Track at Every Stage

No matter where you are in your career, it’s never too early to plan for retirement. Here’s how to focus your efforts based on your life stage:

Just Starting Out

• Start small but be consistent.
• Prioritize building good savings habits.
• Take full advantage of any employer match — it’s free money!

Mid-Career

• Use benchmarks to check your progress.
• Increase your savings rate when you get a raise or bonus.
• Consider diversifying your investments and reviewing your asset allocation.

Nearing Retirement

• Fine-tune your income strategy, including Social Security and pension options.
• Revisit your assumptions about expenses and lifestyle.
• Consider healthcare costs and long-term care planning.

Facing Challenges? You’re Not Alone.

When it comes to saving and planning for retirement, Gen Xers in particular face unique hurdles, such as:

• Late start in retirement savings: Many Gen Xers began saving later due to economic instability in their early careers (e.g., recessions in the 80s and early 90s). Student debt and delayed homeownership also postponed investing in retirement accounts. Because of this, many have less time for compounding growth compared to younger generations.
• High levels of debt: Gen X carries some of the highest average debt compared to other generations, including: mortgage debt, credit card debt, and student loans (both their own and loans taken for their children). This debt load reduces their ability to contribute to retirement savings consistently.
• The "Sandwich Generation" effect: Many Gen Xers support both aging parents and college-age or young adult children simultaneously. This creates financial strain and often leads to dipping into retirement savings or pausing contributions. Some are also covering healthcare or long-term care costs for family members, which further limits their own savings capacity.
• Uncertainty around pensions & Social Security: Unlike Boomers, most Gen Xers don’t have access to traditional pensions. They’re more reliant on 401(k)s, IRAs, and personal investments. There’s widespread concern about the future stability of Social Security, making planning more difficult.
• Market volatility and recessions: Gen X lived through several major downturns (dot-com bubble, 2008 financial crisis, and COVID-19 recession). Many lost significant savings during these events and may have pulled money out of the market at the wrong times. The repeated economic shocks created caution and sometimes delayed investment growth.

It can feel like a losing battle but take heart. If you’re behind, here are a few ways to catch up:

• Increase contributions gradually, even 1–2% more per year can make a big difference.
• Use catch-up contributions if you’re over 50.
• Delay retirement to give your savings more time to grow.
• Adjust your lifestyle expectations to align with your financial reality.
• Work with a financial professional to create a personalized plan.

The Bottom Line

Knowing whether you’re on track for retirement starts with understanding your current position, using benchmarks as a guide, and personalizing your plan to fit your life. With regular check-ins and a willingness to adjust, you can move forward with confidence.