“Well… It Depends!” explores financial questions that rarely have a one-size-fits-all answer.
In this episode, hosts Andrew Baron, CFP®, EA, and Derek Doyle discuss one of the most common questions people have as they prepare for retirement: Am I saving enough?
With the end of the year approaching, the conversation looks at the different ways people can build retirement savings and how much they may need to save on their own to supplement Social Security and support the lifestyle they want in retirement.
Andrew and Derek begin by reviewing the 2026 contribution limits for employer-sponsored retirement plans, including 401(k)s and similar plans, as well as catch-up contribution opportunities for those who are eligible. They also discuss IRA and Roth IRA contribution limits and the role these accounts can play in a broader retirement savings strategy.
The episode then takes a closer look at Social Security and how benefits are calculated. Andrew and Derek explain the concept of Average Indexed Monthly Earnings (AIME), how Social Security’s progressive benefit formula works, and what the different “bend points” mean. Because Social Security replaces a smaller percentage of income for higher earners, the conversation explores why personal savings can become particularly important for people who want to maintain their lifestyle in retirement.
Finally, Andrew and Derek discuss how to think about a retirement savings “target.” They explore how the amount someone needs to save can depend on their desired lifestyle, when they plan to retire, and the role Social Security may play in their overall retirement income. The conversation also touches on common benchmarks such as saving 10 times your income and the potential need for 15–20 times your income depending on your circumstances and retirement goals.
Whether you’re early in your career, approaching retirement, or simply wondering if your current savings rate is enough, this episode offers a framework for thinking about where you are today and what you may need to do to prepare for the retirement you want.
If you’d like to discuss your specific situation with one of our CFPs®, please email info@jgua.com.
For the full transcript, click HERE.
