Retirement Planning Checklist: Are You on Track?

Planning for retirement can feel overwhelming, but breaking it down into manageable steps can make all the difference. Whether you’re in your 20s or approaching retirement age, having a clear plan ensures you’re setting yourself up for financial security later in life.

This checklist is designed to help you assess where you stand and what steps you need to take to stay on track.

1. Set a Target Retirement Age and Lifestyle Goals

Knowing when you want to retire and how you envision your retirement lifestyle is foundational. Will you travel often? Downsize your home? Start a small business? The answers to these questions will impact how much you need to save.

Your ideal retirement age also affects your investment strategy and how long your savings will need to last. Once you set those goals, you can determine how much you’ll need annually and adjust your savings plan accordingly.

2. Calculate Your Retirement Income Sources

Review all potential income streams, including Social Security, employer-sponsored retirement plans (like a 401(k)), IRAs, pensions, annuities, and investment income. Knowing what to expect from each source gives you a better idea of how much supplemental savings you’ll need.

If you’re unsure how to project your future income, a good retirement planning guide can walk you through estimating benefits and calculating income gaps. This is especially helpful for complex financial situations involving multiple retirement accounts or self-employment income. SoFi has a detailed retirement planning guide to help you understand everything about retirement income planning.

3. Maximize Contributions to Retirement Accounts

Are you contributing enough to your retirement plans? In 2025, the maximum 401(k) contribution limit is $23,000 (or $30,500 if you’re age 50 or older). For IRAs, the limit is $7,000 ($8,000 for those 50+). If possible, contribute at least enough to your 401(k) to receive your employer’s full match—it’s essentially free money.

Review your current contributions and increase them annually, especially if your income rises or you pay off debts. Automating your contributions can also help ensure consistency.

4. Review Investment Allocation

Your investment mix should reflect your time horizon and risk tolerance. Younger savers can afford to be more aggressive, while those closer to retirement may want to shift toward more conservative, income-generating investments. Rebalancing your portfolio regularly helps keep it aligned with your goals.

Many brokerage platforms offer tools to analyze your current asset allocation and suggest improvements based on your stage of life. Consider speaking with a financial advisor if you’re unsure how to adjust your portfolio.

5. Evaluate Your Debt and Emergency Savings

A solid retirement plan includes minimizing debt and maintaining an emergency fund. High-interest debt like credit cards should be paid down as quickly as possible. At the same time, aim to have at least 3–6 months of living expenses in an emergency fund to avoid dipping into retirement savings during unexpected financial shocks.

Being debt-free by the time you retire significantly reduces your monthly expenses and gives you more flexibility with your income.

6. Estimate Healthcare and Insurance Needs

Healthcare is often one of the biggest expenses in retirement. Factor in premiums, out-of-pocket costs, and long-term care. If you retire before you’re eligible for Medicare, you’ll need to plan for private health insurance.

Also, review your life and disability insurance needs. Some policies may become unnecessary in retirement, while others (like long-term care insurance) may become more important.