Retirement Planning
How to Get Your Retirement Savings Plan Back on Track
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Article Summary
Small, consistent steps can help strengthen your retirement savings strategy over time.
Retirement can feel far away, especially for people in their 20s, 30s or 40s. But the earlier you begin saving and investing, the more time your money may have to grow.
That does not mean you need a perfect plan from day one. It means you need a starting point, a habit and a willingness to adjust as life changes.
For many people, the hardest part is not understanding that retirement matters. It is making retirement savings a priority while also managing today’s expenses, debt, family needs and competing financial goals.
The good news: getting on track does not have to happen all at once. Small, consistent actions can make a meaningful difference over time.
Start With a Clear Picture of Where You Stand
Before deciding what needs to change, take a snapshot of your current retirement savings.
Ask yourself:
- How much have I saved so far?
- Where is my retirement money held?
- Am I contributing to a workplace retirement plan, IRA or both?
- How much am I contributing each pay period or each month?
- Am I receiving the full employer match available through my workplace plan?
- How is the money invested?
This kind of review can help you see whether your current savings habits align with your long-term goals. Many retirement accounts, including 401(k) plans and IRAs, have tax rules and contribution limits that may affect how much you can save each year.
For 2026, the IRS says the elective deferral limit for employees participating in 401(k), 403(b), most 457 plans and the federal Thrift Savings Plan is $24,500.[6] The IRS also states that the IRA contribution limit for 2026 is $7,500, with additional catch-up contribution opportunities for eligible individuals.[6]
These limits do not mean everyone can or should contribute the maximum. They simply provide a framework for understanding how tax-advantaged retirement savings opportunities may fit into your plan.
Use Benchmarks as a Guide, Not a Judgment
It can be helpful to compare your savings against general age-based guidelines. One common framework estimates target retirement savings as a multiple of current income, such as roughly one times income by age 30, two times income by age 35 and three to four times income by age 40.[1]
These benchmarks can provide a useful reference point, but they are not a personal scorecard. Your needs may differ based on income, retirement age, desired lifestyle, debt, family responsibilities, health care needs and other assets.
If the numbers feel overwhelming, focus less on the gap and more on the next step. Retirement planning is not about being perfect at every age. It is about building momentum and making steady progress.
Know How Much You May Need to Save
The percentage of income needed for retirement savings often depends on when you start. A person who begins saving early may be able to contribute a smaller percentage consistently, while someone who starts later may need to save a higher percentage to catch up.
As a general planning guideline, someone starting in their 20s may aim to save about 10% to 15% of income for retirement, including any employer match.[1] Someone starting in their 30s may need to target closer to 15% to 25%, while someone starting in their 40s may need to save more aggressively, depending on their goals and current savings.[1]
These are broad rules of thumb, not personalized recommendations. The right savings rate depends on your specific situation, including your income, spending, retirement timeline, investment approach and expected income sources in retirement.
Capture the Employer Match, If Available
If your employer offers a retirement plan match, contributing enough to receive the full match may be one of the most important savings steps to consider.
The Department of Labor notes that if an employer offers a match, employees should make sure their contributions are enough to receive it.[4] The IRS also explains that many retirement plans, including 401(k)s and SIMPLE IRAs, may provide matching contributions based on how much the employee contributes.[3]
A match is not always immediately vested, and plan rules can vary.[3] Review your plan documents or talk with your benefits team to understand how your match works, how much you need to contribute and when employer contributions become fully yours.
Balance Retirement With Other Financial Priorities
Retirement should be a top savings priority, but it is not the only priority.
A practical order of operations may include:
- Contribute enough to your workplace retirement plan to receive the full employer match, if one is available
- Pay down high-interest debt, especially credit card debt, which can carry interest costs that may exceed what many savings or investments could reasonably earn
- Build or maintain emergency savings for unexpected expenses or income disruptions
- Increase contributions to tax-advantaged retirement accounts as cash flow allows
An emergency fund is a cash reserve set aside for unplanned expenses or financial emergencies, such as car repairs, medical bills, job loss or home repairs. Having emergency savings can help reduce the need to rely on credit cards or loans when something unexpected happens.
Student loan payments, mortgages, childcare and other obligations may also be part of the picture. The goal is to create a plan that allows you to make progress toward retirement while still managing the financial realities of today.
Look for Money You Can Redirect
Finding room to save often starts with small changes.
Consider reviewing:
- Recurring subscriptions or memberships you no longer use
- Insurance, phone or internet plans that may be renegotiated or adjusted
- Dining out, delivery or convenience spending
- Tax refunds, bonuses, side income or cash gifts
- Payments from loans or credit cards that have recently been paid off
The idea is not to cut everything enjoyable from your life. It is to decide ahead of time where extra dollars should go before they disappear into everyday spending.
When you receive a raise, bonus or other income increase, consider increasing your retirement contribution before expanding your lifestyle. Automatic contributions can help make saving more consistent because the money is directed toward your goal before it is available to spend.
Make Sure Your Savings Are Invested Appropriately
Saving is important, but for long-term goals like retirement, investing also matters.
Investor.gov explains that the investments that may be appropriate for you depend on your goals, investing timeframe and risk tolerance.[5] Retirement often has a long time horizon, which may allow investors to consider growth-oriented investments, although all investing involves risk.
Diversification can also help manage risk by spreading money across different investments with different risk and return characteristics. Diversification does not eliminate risk or guarantee returns, but it can help avoid relying too heavily on one investment or asset class.
If you are unsure how to invest, options such as diversified mutual funds, exchange-traded funds or target-date funds may be worth reviewing. Investor.gov explains that target-date funds adjust their investment mix over time, generally becoming more conservative as the target date approaches.[2]
Your investment mix should reflect your timeline, comfort with risk and retirement goals. It should also be reviewed periodically as your circumstances change.
Automate the Habit
One of the simplest ways to stay consistent is to automate your savings.
For a workplace retirement plan, contributions are often taken directly from your paycheck. For an IRA or taxable investment account, you may be able to schedule automatic transfers from your bank account.
Investor.gov encourages setting up automatic contributions for long-term saving and investing goals, while also making sure monthly living expenses are covered.[2]
You may also be able to increase your workplace retirement contribution by 1% at a time. Some plans allow automatic annual increases, which can help you gradually build your savings rate without making a dramatic change all at once.
Automation will not replace planning, but it can reduce friction. The less often you have to decide whether to save, the more likely the habit may stick.
Revisit the Plan Regularly
Retirement planning is not a one-time exercise. Your income, expenses, family situation, job, benefits, goals and market conditions can all change.
Consider reviewing your retirement plan at least annually and after major life events, such as:
- A new job or promotion
- Marriage or divorce
- The birth or adoption of a child
- A home purchase
- Paying off major debt
- A change in health or caregiving responsibilities
- A significant market shift
- A major change in income
This review does not need to be complicated. Even small adjustments, such as increasing contributions, updating beneficiaries or rebalancing investments, can help keep your plan aligned with your goals.
It Is Never Too Early — or Too Late — to Course Correct
The best time to start saving may have been earlier. The next best time is today.
If you are early in your career, time can be one of your biggest advantages because compound growth has more years to work. If you are further along, you may still have options, including increasing contributions, using catch-up contributions if eligible, reviewing spending, delaying retirement, adjusting your investment strategy or working with an advisor to refine your plan.
What matters most is taking the next practical step.
Final Thoughts
Getting your retirement savings plan on track does not require perfection. It requires awareness, consistency and periodic adjustments.
Start by understanding where you are. Capture available employer matching contributions if your plan offers them. Balance retirement savings with debt reduction and emergency savings. Invest in a way that reflects your timeline and risk tolerance. Automate what you can. Then revisit the plan as your life changes.
Small steps taken consistently can help build confidence today and create more flexibility for the future.
Sources
[1] https://www.schwab.com/learn/story/how-to-get-your-retirement-savings-plan-on-track
[2] https://www.investor.gov/introduction-investing
[4] https://savingmatters.dol.gov/employees.htm
[5] https://www.investor.gov/introduction-investing/investing-basics/investment-products
[6] https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500
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