Your Retirement Planning Checklist: A Lifespan Guide to Financial Security

Why a Retirement Planning Checklist Matters

A comprehensive checklist ensures you address all aspects of retirement planning systematically, avoiding common pitfalls and adapting as your life changes.

Getting Started (20s-30s): Building a Strong Foundation

Focus on habits, employer benefits, and tax-advantaged savings. This phase emphasizes consistency and compounding even when contributions are modest.

Enroll in Employer 401(k) with Matching

Enrolling in your employer's 401(k) plan, especially with matching contributions, is one of the best ways to kickstart retirement savings with "free money." Sign up through HR as soon as you are eligible and contribute at least enough to capture the full employer match (for example, a 50% match on the first 6% of salary).

• How to get started: Sign up through HR or the plan portal; set payroll deductions to capture the match.
• 2025 limits: Up to $23,500 employee contributions (employer match is separate).
• Considerations: Watch for vesting schedules and high plan fees; prefer low-cost index fund options when possible.

Finster's role: Share salary and plan details with our AI to calculate optimal contributions and project growth.

Pro Tip: If your employer doesn't offer a 401(k), prioritize a Traditional or Roth IRA instead.

Open and Fund a Roth IRA

A Roth IRA offers tax-free growth and qualified withdrawals, making it ideal for young investors expecting higher taxes later. Open an account at a low-cost brokerage and fund it regularly.

• How to get started: Open an account with Vanguard, Fidelity, or Schwab and set up recurring transfers.
• 2025 limits: $7,000 annual contribution ($8,000 if age 50+); income limits apply (full contribution if MAGI under $144,000 single / $230,000 married).
• Considerations: No immediate tax deduction, but qualified withdrawals are tax-free.

Finster's role: We can check eligibility, recommend investments, and compare Roth vs Traditional strategies.

Set Retirement Savings Goal (10-15% of Income)

Establish a target savings rate—aim for 10–15% of gross income across accounts (including employer match). Calculate your current rate and increase gradually.

• How to set your goal: (Total contributions / Gross income) × 100. Start at 10% and increase toward 15% as income grows.
• Rule of thumb: Saving ~15% for 30 years can replace ~70–80% of pre-retirement income.

Finster's role: Input your income and age to receive realistic targets and progress tracking.

Automate Contributions and Increases

Automation removes friction—set payroll deductions for your 401(k), schedule monthly transfers to IRAs, and plan annual 1–2% contribution increases tied to raises.

Finster can recommend an automation schedule and simulate growth with annual increases.

Mid-Career (40s-50s): Optimizing and Protecting Your Savings

In your 40s and 50s focus on maximizing contributions, tax diversification, and planning for healthcare and long-term care as you approach retirement.

Maximize Catch-Up Contributions (Age 50+)

Catch-up contributions let those 50+ save more each year: 401(k) catch-up of $7,500 (on top of $23,500), IRA catch-up $1,000 (on top of $7,000), and HSA catch-up $1,000 at 55+.

Finster can calculate catch-up eligibility and project the impact on your retirement balance.

Diversify Retirement Account Types

Diversify across pre-tax (401(k)), after-tax (Roth), and taxable accounts to create tax flexibility in retirement. Consider partial Roth conversions during low-tax years.

• How to diversify: Maintain a mix such as 40–50% pre-tax, 30–40% Roth, and 10–20% taxable depending on goals.
• Considerations: Roth conversions trigger current taxes—plan with a tax advisor.

Finster can analyze your accounts and suggest an optimal tax-diversification plan.

Plan for Healthcare and Long-Term Care

Plan Medicare enrollment and HSA accumulation ahead of time; evaluate long-term care insurance or self-funding to protect your nest egg.

Finster can project healthcare expenses and advise on HSA contributions and LTC options.

Consider Roth Conversions

Roth conversions move pre-tax funds into Roth accounts, paying taxes now for tax-free growth later. They are best executed in low-income years or before retirement.

• How it works: Convert Traditional IRA or 401(k) funds to a Roth IRA and pay income taxes on the converted amount.
• Considerations: Watch tax brackets—conversions can increase current taxes and may trigger the 5-year clock for tax-free earnings.

Finster can simulate conversion scenarios to help decide amounts and timing (consult a tax advisor for final decisions).

Getting Started with Your Retirement Planning Checklist on Finster Chat

Share your income, age, and current savings with Finster to receive a tailored checklist and projection plan.

For more on Retirement Planning, see 401(k) Plans, Traditional IRA, Roth IRA, Social Security Strategy, and Healthcare Planning.