Retirement planning examples help people visualize how to build wealth for their later years. Most Americans know they should save for retirement, yet only 39% have calculated how much they actually need. That gap between intention and action often comes down to one thing: a lack of clear, practical examples.
This guide breaks down retirement planning into concrete strategies anyone can follow. Whether someone is 25 and just starting their first job or 55 and playing catch-up, these real-world examples show exactly what smart retirement planning looks like at every stage. The numbers, timelines, and approaches here aren’t theoretical, they’re based on how successful savers actually build their nest eggs.
Key Takeaways
- Retirement planning examples show you should aim to save 10-15% of income in your 20s and have one year’s salary saved by age 30.
- Use the 25x rule to calculate your retirement number—multiply your desired annual retirement income by 25 to find your savings target.
- Starting early matters most: a 28-year-old saving $10,700 annually can grow their savings to approximately $1.8 million by age 65 through compound interest.
- Shift your investment portfolio from aggressive (90% stocks) in your 20s-30s to conservative (50% stocks, 40% bonds) as you approach retirement.
- Plan for healthcare costs carefully—a 65-year-old couple needs approximately $315,000 for healthcare expenses throughout retirement.
- The 4% withdrawal rule suggests taking out 4% of savings annually, meaning $1 million provides about $40,000 per year in retirement income.
Setting Retirement Goals by Age and Income
Good retirement planning starts with clear goals. But those goals should shift based on age, income, and personal circumstances.
In Your 20s: The primary goal is simply to start. A 25-year-old earning $45,000 annually should aim to save at least 10-15% of their income. If their employer offers a 401(k) match, capturing that full match is the first priority. At this stage, someone might target having one year’s salary saved by age 30.
In Your 30s: Goals become more specific. A 35-year-old earning $70,000 should aim to have roughly two times their annual salary saved. This is also when people start calculating their actual retirement number. A common formula: multiply desired annual retirement income by 25. If someone wants $60,000 per year in retirement, they need approximately $1.5 million.
In Your 40s: The target increases to three to four times annual salary. A 45-year-old earning $90,000 should have $270,000-$360,000 saved. Retirement planning examples at this age often include catch-up strategies if someone fell behind earlier.
In Your 50s and Beyond: The goal is six to eight times annual salary by age 60. People over 50 can also make catch-up contributions to retirement accounts, an extra $7,500 per year to 401(k)s and $1,000 to IRAs in 2024.
Income matters, but so does lifestyle. Someone earning $150,000 who spends $140,000 needs a different retirement plan than someone earning $80,000 who lives on $50,000. The saver has the advantage, regardless of income.
Example Retirement Savings Plans for Different Life Stages
Retirement planning examples work best when they’re specific. Here’s what savings plans look like at two critical career stages.
Early Career: Building a Foundation in Your 20s and 30s
Meet Sarah, a 28-year-old marketing coordinator earning $55,000. Her retirement planning example looks like this:
- 401(k) contribution: 10% of salary ($5,500/year), with a 4% employer match ($2,200/year)
- Roth IRA: $3,000/year (she can’t max it out yet, but she contributes consistently)
- Total annual retirement savings: $10,700
With an average 7% annual return, Sarah’s retirement savings could grow to approximately $1.8 million by age 65. The key at this stage isn’t the dollar amount, it’s the habit. Compound interest does the heavy lifting when someone starts early.
Early career savers should prioritize:
- Getting the full employer 401(k) match
- Building an emergency fund (3-6 months of expenses)
- Paying off high-interest debt before maxing retirement accounts
Mid-Career: Accelerating Savings in Your 40s and 50s
Now consider David, a 48-year-old engineer earning $120,000. He started saving late and has $180,000 in retirement accounts. His retirement planning example requires more aggressive action:
- 401(k) contribution: Maximum allowed ($23,000 in 2024, plus $7,500 catch-up = $30,500)
- Backdoor Roth IRA: $7,000/year
- Total annual retirement savings: $37,500
David’s employer matches 3%, adding another $3,600 annually. If he maintains this pace with 7% returns, he could reach approximately $1.2 million by age 65.
Mid-career retirement planning examples often include:
- Maximizing catch-up contributions after age 50
- Reducing lifestyle expenses to boost savings rate
- Considering working 2-3 years longer to dramatically improve outcomes
Investment Portfolio Examples for Retirement
Saving money is only half the equation. How that money gets invested determines long-term results.
Aggressive Portfolio (Ages 20-40):
- 90% stocks (60% U.S., 30% international)
- 10% bonds
This allocation accepts short-term volatility for long-term growth. A 30-year-old has decades to recover from market downturns.
Moderate Portfolio (Ages 40-55):
- 70% stocks (50% U.S., 20% international)
- 25% bonds
- 5% cash/money market
This retirement planning example balances growth with protection. Someone in their late 40s still needs growth but can’t afford to lose everything in a crash.
Conservative Portfolio (Ages 55+):
- 50% stocks (35% U.S., 15% international)
- 40% bonds
- 10% cash/money market
Capital preservation becomes more important as retirement approaches.
One popular approach is target-date funds. A “2045 Target Date Fund” automatically shifts from aggressive to conservative as 2045 approaches. These funds offer retirement planning in a single investment, simple and effective for hands-off investors.
The right portfolio also depends on risk tolerance. Someone who panics during market drops should invest more conservatively, regardless of age. The best portfolio is one an investor will actually stick with through volatility.
Creating a Retirement Budget That Works
Retirement planning examples must address spending, not just saving. A $1 million nest egg means different things to different people.
The 4% rule provides a starting framework. It suggests withdrawing 4% of savings annually, adjusted for inflation. With $1 million, that’s $40,000 per year. Add Social Security benefits, and many retirees can live comfortably.
Sample Retirement Budget ($60,000/year):
| Category | Monthly | Annual |
|---|---|---|
| Housing | $1,200 | $14,400 |
| Healthcare | $600 | $7,200 |
| Food | $500 | $6,000 |
| Transportation | $400 | $4,800 |
| Utilities | $250 | $3,000 |
| Entertainment | $400 | $4,800 |
| Travel | $500 | $6,000 |
| Miscellaneous | $350 | $4,200 |
| Taxes | $400 | $4,800 |
| Buffer | $400 | $4,800 |
| Total | $5,000 | $60,000 |
Healthcare deserves special attention. Fidelity estimates a 65-year-old couple retiring today needs approximately $315,000 for healthcare costs throughout retirement. Medicare doesn’t cover everything.
Good retirement planning examples include:
- Paying off mortgages before retirement
- Accounting for inflation (costs roughly double every 20 years)
- Building a “fun money” category, retirement should be enjoyable
- Planning for the unexpected with a financial buffer
People often underestimate early retirement spending. New retirees travel more, pursue hobbies, and stay active. Expenses typically decrease in the mid-70s, then rise again with healthcare needs in the 80s.
