Do you need to step up your game when it comes to retirement saving?
Originally published: February 8, 2024
Updated: August 11, 2026
Your financial health can have a profound impact on how comfortably you live down the road. Even if you are several years off from retiring, there’s no time like the present to take a deep dive into your retirement plan to make sure you feel confident about your future.
Generally speaking, most people don’t feel like they are saving enough, or they simply don’t know how much to save in order to retire with the lifestyle that they envision. Instead of being a catalyst for action, however, these feelings can sometimes have the opposite effect and cause decision paralysis. Without knowing what steps to take, people will often choose not to think about the topic of retirement planning and will therefore let more time slip by without a solid plan.
It’s never too late to start planning, though. Some groups, such as AARP, have started campaigns to help people at any stage of their retirement planning process. AARP calls their campaign, “This is Pretirement” with hopes that it will raise awareness and alleviate some of the stress people may be feeling when they think about saving for the future. The campaign features ads on radio, tv, and social media, and has a website, ThisIsPretirement.org, where you can take a quiz and begin building your plan.
Budgeting
Many experts will tell you to start with a simple budget outlining your income and expenses. If not sure how to get a budget set up, a financial professional, such as Summerlin Benefits Consulting, can assist you. You and/or the financial professional can then dive deeper into the areas where you are spending your money in order to better identify where you can save. You can then set goals as to how much you’d like to “put away” towards retirement each month. Having a written budget may also hold you more accountable to your spending (and therefore goals) once you get started.
Take a look at your contributions
If you are still working and your employer offers a 401(k), you can set up contributions that will come directly out of your paycheck. For those who don’t have access to an employer-sponsored plan, or those who are retired or self-employed, there are individual retirement accounts, such as IRAs, that can be set up to do the same thing. You will just have to make the contributions as opposed to them pulling directly from a paycheck. Even if small, contributions can help build a nest egg for you to use in retirement.
What if you have been making contributions, but wish the contributions had been larger? There is something called a catch-up contribution for individuals who are age 50 or older, which allows you to make additional contributions each year beyond the standard limits and can help you make up for those lower contributions earlier in life. For 2026, the 401(k) catch-up contribution is $8,000, and the IRA catch-up contribution is $1,100, both on top of the standard limits below (IRS). Savers ages 60 through 63 may also qualify for an enhanced “super” catch-up of $11,250 in a 401(k), in place of the standard catch-up amount (IRS).
Starting in 2026, under SECURE 2.0, if you earned more than $150,000 in FICA wages the prior year, any catch-up contributions you make to your 401(k) must be made on a Roth (after-tax) basis rather than pre-tax. This is worth keeping in mind if you’re a higher earner planning to use catch-up contributions as part of your strategy. So, current contribution limits are as follows.
401(k) contributions:
- Under age 50 may contribute up to $24,500
- Age 50+ may contribute up to $32,500
- Age 60–63 (enhanced catch-up) may contribute up to $35,750
IRA contributions:
- Under age 50 may contribute up to $7,500
- Age 50+ may contribute up to $8,600
Source: IRS, “401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500,” Nov. 13, 2025
Estimate Your Income
Start to identify the sources of income you’ll have in retirement, including pensions, social security, and other investments. Did you know you can go to the Social Security Administration website, SSA.gov and see how much you will get depending on when you choose to initiate your Social Security benefits?
If you anticipate needing more money in retirement to offset the expenses you’ll have, you can also look into other sources of income, such as Fixed Index Annuities (FIA). Some FIA operate similar to a pension and allow you to turn on income when you need it. Some even include long term care benefits, which can be a huge benefit considering the cost of long-term care should you need it. FIA will grow your initial premium at a reasonable rate over time until you are ready to initiate the income.
Work as long as you can
Retirement is viewed as the time of life when you finally get to relax from the continuous, daily grind of working, raising a family, etc. Many picture their retirement taking place on a sunny beach with a drink in one hand and a book in the other. While this can certainly be a reality, you may want to entertain the idea of working a little longer than expected or doing part-time or consulting work once you have retired.
While you may think this sounds crazy, there are also several benefits to consider. First, the additional income that you weren’t accounting for could certainly help boost your nest egg and make it last longer, if needed. Additionally, working in retirement may help you maintain the sense of productivity that some tend to lose when they quit working. A job can become a large part of one’s identity while in their working years, and leaving the job when beginning retirement can often put an unexpected strain on one’s mental health.
But, not all are healthy enough to continue working in retirement, so it is probably best to look at it as an “added bonus” to your nest egg if you are able to do so and not rely on the extra income.
Hopefully you’ve picked up on the theme by now, and that is to put aside as much as possible. It is never too late to start and there are baby steps you can take if the topic of retirement planning overwhelms you.
You can also ask for help from a financial professional, such as Summerlin Benefits Consulting. We keep things simple and walk our clients through each step of the way! Don’t spend another day stressing about your retirement plan - call us today for a free, no-obligation meeting.
Important Tax and Legal Information
This content is for informational purposes only and does not constitute tax or legal advice. Summerlin Benefits Consulting does not provide social security, specific advice related to taxes, or legal advice. Consult a tax/legal professional for guidance with your individual situation.
Important Retirement Planning Information
Every retirement strategy is unique, and not all annuity products offer the same features, guarantees, or level of protection. References in this article apply only to the specific retirement solutions discussed and should not be interpreted as applying to all annuities. The right strategy depends on your individual goals, financial situation, and retirement objectives. This is something Summerlin Benefits Consulting can help you determine.
Q: What is a catch-up contribution and who qualifies for it?
A: A catch-up contribution lets savers age 50 or older put extra money into a 401(k) or IRA beyond the standard annual limit. For 2026, that means up to $8,000 extra in a 401(k) (or $11,250 for ages 60–63) and $1,100 extra in an IRA.
Q: How much can I contribute to my 401(k) in 2026?
A: In 2026, workers under 50 can contribute up to $24,500 to a 401(k), and those 50 and older can contribute up to $32,500. Savers ages 60–63 may qualify for an enhanced “super” catch-up of $11,250, bringing their total to $35,750.
Q: What’s the IRA contribution limit for 2026?
A: For 2026, individuals under 50 can contribute up to $7,500 to an IRA, and those 50 and older can contribute up to $8,600, which includes a $1,100 catch-up contribution.
Q: How do I know if I’m saving enough for retirement?
A: There’s no universal number — it depends on your income, expenses, and desired lifestyle. Building a budget, reviewing your contributions, and estimating income sources like Social Security and pensions are the first steps toward answering that for your situation.
Q: Can I keep working after I retire?
A: Yes. Many retirees choose part-time or consulting work to supplement savings and stay engaged. It’s best treated as a bonus to your nest egg rather than a required income source, since health and opportunity can vary.
