Are Your Retirement Savings Really on Track?

5 minutes ago2 min read

Regular Reviews and Adjustments Can Strengthen Your Financial Confidence

At Dominion Wealth Management, we understand that preparing for retirement is one of the most important financial journeys you’ll ever take. Yet, with inflation, rising healthcare costs, and the uncertainty surrounding Social Security, it’s natural to question whether your current savings are truly enough. That’s why regularly evaluating your retirement plan and making timely adjustments is essential to staying on course—and staying confident.

Assessing Your Current Retirement Savings

The first step in making sure you're on the right path is to evaluate what you've already saved. Review your retirement accounts, including 401(k)s, IRAs, and other investment vehicles. It's important to calculate your savings rate as a percentage of your income. At Dominion Wealth Management, we generally recommend aiming to save 15–20% of your annual income, including any employer contributions.

A helpful industry guideline is the retirement savings multiple rule:

By Age 30: Save 1x your annual salary
By Age 40: Save 3x your annual salary
By Age 50: Save 6x your annual salary
By Age 67: Save 10x your annual salary

Keep in mind, though, that these benchmarks can shift depending on your lifestyle goals and potential healthcare needs.

Projecting Your Future Retirement Income Needs

The next step is projecting how much income you’ll need once you retire. A common rule of thumb is the 4% withdrawal rule, which recommends withdrawing 4% of your total retirement savings each year over a 30-year retirement. For example, to generate $50,000 annually in retirement, you’d need about $1.25 million saved.

But this is just a starting point. Factors like housing costs, travel plans, healthcare expenses, and inflation must be considered. Tools such as online retirement calculators are useful, but a personalized plan created with a financial advisor can provide a much more accurate picture of your future needs.

Making Strategic Adjustments

If your current savings fall short of where they need to be, don’t panic—there are several strategies you can use to catch up:

Increase Contributions: Maximize your contributions to 401(k)s and IRAs while taking full advantage of employer matches.
Delay Retirement: Working a few extra years gives your investments more time to grow and reduces the number of years they need to support you.
Adjust Investment Strategy: A diversified, balanced portfolio can help you grow your nest egg without taking on unnecessary risk.
Reduce Expenses: Freeing up discretionary income can allow for higher savings rates and less financial stress down the road.

At Dominion Wealth Management, we specialize in building customized retirement strategies that evolve with you. Life changes—and your retirement plan should, too.

Ready to Feel More Confident About Retirement?

You don’t have to figure it all out alone. Our experienced advisors at Dominion Wealth Management are here to guide you every step of the way. Contact our office today to schedule an appointment and take the next step toward a secure, confident retirement.