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For decades, many workers could count on one employer, a pension, and a clear path toward retirement. That model has faded. Today, individuals often carry more responsibility for building savings and steady income. This shift makes a personal plan more important—and gives younger professionals new choices to weigh.
Confidence matters, too. An Ipsos survey for RBC Wealth Management-U.S. found that 53 percent of people heading into retirement worried they might outlive their assets. A solid nest egg is not just a number; it can support the life you want.
Work and family patterns have changed as well. Pew Research Center reports that more than 73 percent of children lived with two parents in their first marriage in the 1960s. More recently, that figure was 46 percent. These shifts shape how people think about support, money, and social security.
There is no single age or formula that fits everyone. Good planning is an ongoing process that links savings, income, personal goals, and the time available. This article explores how choices today can shape your financial future, when you need to save, and what you want life to look like down the road.
Why Traditional Retirement Planning No Longer Fits Younger Professionals
A 401(k) can offer useful tools, but it does not promise a set monthly benefit for life. That changes who must make key choices and carry the risk.
Taking on More Responsibility Without Traditional Pensions
As employers moved from pensions to defined-contribution accounts, workers took on more of the saving task. Your contributions, investment choices, and employer benefits can all shape future income.
“A steady career path is no longer the only route to financial security.”
Adapting to Career and Family Changes
Work timelines can shift. Sixty percent of retirees leave work earlier than they expected, and health issues play a role in 61 percent of those cases. Family needs can also change the way people save. Pew Research Center reports that the share of children living with two parents in their first marriage fell from over 73 percent in the 1960s to 46 percent more recently.
- Review savings as income and expenses change.
- Consider family needs, health costs, and work benefits.
- Revisit your plan as life changes over the years.
Many people may need to adjust their retirement planning. An advisor can help weigh tax effects and money choices as costs and responsibilities shift.
How Modern Retirement Planning Makes Room for Flexible Goals
Good financial choices should support the life you want, not just a target balance. Retirement planning is an ongoing process: set clear goals, review your resources, and adjust as your needs change.
Connecting Goals to the Life You Want
Think about what matters to you. Your goals might include travel, hobbies, a different home, or leaving money to family. Many people use 70% to 85% of their pre-retirement income as a starting point for estimating future spending. Your own needs may differ, so consider expected costs and available savings.
Revisiting Your Plan as Income and Expenses Change
Income, expenses, health, and Social Security choices can shift with age. Review your strategy each year and after major life changes. Check that your investments still fit your goals and timeline, and consider tax effects when you weigh options.
- Update spending estimates when costs change.
- Revisit goals after a move or career shift.
- Ask an advisor for a fresh perspective when needed.
A flexible approach can help keep your money aligned with the life you want over time.
Build Long-Term Savings Through Accounts and Contributions
A useful retirement planning approach starts with steady saving and account choices that fit your goals. Small, regular deposits can grow over time, while workplace benefits may help your nest egg grow faster.
Make the Most of Employer Contributions
If your employer matches 401(k) contributions, try to contribute enough to receive the full match. It can add to your savings. Automatic deposits also make saving easier to maintain. Eligible workers can use catch-up contributions to build their account. In 2025, people ages 60–63 may add $11,250 under the super catch-up rule, for a possible $34,750 total in an employer plan.
Compare Tax Options and Investment Risk
Workplace plans and traditional or Roth IRAs have different tax rules. Traditional accounts may offer a tax break now, while qualified Roth IRA withdrawals can be tax-free in retirement. Compare the tax impact before choosing an account.
Match investments to your time horizon and comfort with risk. Stocks may offer higher returns, but can swing more than bonds. Review investments at least once a year, or a few times a year near retirement age. Avoid sharp changes based on short-term market moves; keep your plan tied to your needs and income.
Plan for Social Security, Health Costs, and Future Income
Choosing when to claim benefits can shape your monthly income for years. Health needs and medical bills also affect how much money you may need to set aside.
Weigh Your Claiming Choices
You can begin Social Security payments at age 62. Full retirement age is 66 or 67, based on your birth year. If you wait past that age, benefits can rise by 8% each year until age 70. Waiting longer does not add more.
Before you choose, consider your health, family needs, work plans, and other income. These details can help you pick a strategy that fits your goals and expected spending.
- Include healthcare costs in your estimate. Medicare does not cover every expense, and one source suggests setting aside an extra $25,000 if you stop work at 62 instead of 65.
- Think about how long your savings may need to last. The World Health Organization reports that women typically live six to eight years longer than men.
- Review your assets, investments, and tax needs as costs change.
A clear plan can help retirees balance current needs with lasting income.
When a Financial Advisor Can Help Keep Your Plan on Track
Big financial decisions feel easier when someone helps connect the pieces. A financial advisor can turn a broad goal into a personal plan for savings, income, investments, tax needs, and risk tolerance. Jennifer Linder, a wealth planning consultant at RBC Wealth Management-U.S., also stresses the value of checking beneficiary designations and asset ownership. These details can affect how your account fits with estate planning.
An advisor can review workplace accounts and contributions, including catch-up contributions for eligible savers. Jim Clement of Associated Bank reminds investors to keep a long-term view. Still, the right investment approach depends on your goals, age, and comfort with risk. Bill Ringham of RBC Wealth Management-U.S. and Jeff Edwards of Associated Investment Services bring added experience to these conversations.
- Check that your savings account and workplace plans suit your needs.
- Review costs, income, and tax effects as circumstances change.
- Update your retirement plan when your goals or needs shift.
Regular conversations can help retirees keep their financial future in view. This process gives retirees a chance to adjust without reacting to every market move. For younger workers and people nearing retirement, steady planning can help keep choices clear and practical.
Conclusion
With pensions less common, retirement planning works best as a flexible process, not a one-time decision. Set your retirement plan around the life and goals you want, then adjust as work, health, or family needs shift. Many people use 70% to 85% of the income they earn before stopping work as a starting point, but your costs may differ.
Your Social Security claiming age also matters. Benefits rise by 8% for each year you wait beyond your full-benefit age, up to age 70. Save on a steady schedule, choose investments with care, and review your money as income and costs change. For context, explore how longer lives are reshaping later-life.
Start saving as early as you can, then revisit your approach as your goals and needs evolve. Small, regular steps can help keep your future within reach.
