Can You Afford a Secure Retirement?
of his wallet, as Jeff likes to joke.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Jeff Delaplane's two grown children are out of the house, though not necessarily out of his wallet, as Jeff likes to joke. Still, as empty-nesters, he and his wife, Kathy, are stashing away as much as they can for a comfortable retirement. They hope to begin a life filled with golf, bridge and volunteer work in about five years.
| Row 0 - Cell 0 | Your Budget |
| Row 1 - Cell 0 | Your Home |
| Row 2 - Cell 0 | Your College Savings |
| Row 3 - Cell 0 | Your Insurance |
| Row 4 - Cell 0 | Your Retirement |
| Row 5 - Cell 0 | Test Your Financial Fitness |
The Delaplanes, who are both in their mid fifties, are on track to replace nearly 100% of their earnings when they retire, thanks to a combination of savings, Social Security, Kathy's pension and a lump-sum payout Jeff will get when he leaves the agency that he runs for American Family Insurance. That's nearly double the percentage of preretirement income most retirees can expect, according to Fidelity Investments. It's also well above the 75% that advisers often recommend to cover health-care costs, travel, hobbies and other activities.
Jeff invests the maximum allowed in his company's retirement plan, taking full advantage of the higher contribution limit for workers age 50 and older. With his employer's matching contributions, he's socking away 13% of his income -- nearly twice as much as the typical 401(k) participant sets aside.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Workers should save at least 15% of their salary for retirement throughout their careers and even more if they get a late start. Jeff and Kathy will probably sell their big house and move to a condominium, but they'll stay in Bloomington, Ind. They'll add the extra cash from the home trade to their nest egg, which they hope will reach $1 million.
Fatten your nest egg with these four tips:
- Contribute at least enough to your 401(k) plan to capture your employer's match and preferably up to this year's $15,000 maximum.
- Play catch-up by contributing an extra $5,000 annually if you're over age 50.
- Stay on the job. Not only will you increase your retirement savings, but you'll also reduce the number of years in which you'll need the money.
- Invest for growth by keeping most of your assets in stocks or stock funds. That's the only way you'll earn the 7% or more that you'll need to make your savings last.
-
Ask the Tax Editor: Federal Income Tax DeductionsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on federal income tax deductions
-
States With No-Fault Car Insurance Laws (and How No-Fault Car Insurance Works)A breakdown of the confusing rules around no-fault car insurance in every state where it exists.
-
7 Frugal Habits to Keep Even When You're RichSome frugal habits are worth it, no matter what tax bracket you're in.
-
457 Plan Contribution Limits for 2026Retirement plans There are higher 457 plan contribution limits in 2026. That's good news for state and local government employees.
-
Medicare Basics: 12 Things You Need to KnowMedicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
-
The Seven Worst Assets to Leave Your Kids or Grandkidsinheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
-
SEP IRA Contribution Limits for 2026SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $70,000 in 2025, and up to $72,000 in 2026.
-
Roth IRA Contribution Limits for 2026Roth IRAs Roth IRAs allow you to save for retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2026 limits and income-based phaseouts.
-
SIMPLE IRA Contribution Limits for 2026simple IRA For 2026, the SIMPLE IRA contribution limit rises to $17,000, with a $4,000 catch-up for those 50 and over, totaling $21,000.
-
457 Contribution Limits for 2024retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
-
Roth 401(k) Contribution Limits for 2026retirement plans The Roth 401(k) contribution limit for 2026 has increased, and workers who are 50 and older can save even more.
