Overview
- More than half of workers expect to depend on Social Security, while trustees project insolvency in about eight years that could trigger roughly 23% across‑the‑board cuts.
- New 2026 IRS catch‑up limits give late savers more room: IRA contributions rise to a total of $8,600 for those 50+, 401(k) catch‑ups reach $8,000, and ages 60–63 get $11,250 extra, with Roth‑only catch‑ups for many higher earners.
- Studies highlight widespread under‑saving: 52.5% of boomers hold under $250,000, and Gen X median balances are just $6,000 for women and $13,000 for men, with only 14% of Gen X covered by traditional pensions.
- Planning guidance centers on delaying Social Security for up to an 8% annual boost to age 70, sequencing 401(k)/IRA/pension withdrawals to minimize taxes, and maintaining growth exposure with dividend stocks and REITs.
- Key risks and levers include holding a cash buffer to manage market‑timing withdrawals, the advantage of mortgage‑free housing for lower fixed costs, an average benefit near $2,000 per month that falls short for many, and a near‑doubling of the over‑65 workforce since the mid‑1980s.