Retirement Checkup: Three Common-Sense Questions for Boomers

The numbers are staggering. America is entering a historic retirement surge, with more than 4.1 million Americans turning 65 each year through 2027. That's over 11,200 people every single day. This isn't just a trend; it's a wave that will crest over the next few years, reshaping communities and markets alike.

The real danger isn't just the sheer volume, but what many of these retirees are walking into. A significant portion of the Peak 65® generation lacks sufficient protected income, putting them at serious risk of outliving their savings. For decades, the safety net for retirement was a simple equation: a steady paycheck, a company pension, and then Social Security to cover the rest. That equation has broken down. Traditional pension plans have largely vanished, leaving a generation of workers to rely on their own savings and the promises of a system that itself is under strain.

This is especially true for low- to middle-income boomers. They will rely heavily on Social Security to fund their retirement, making them acutely vulnerable to any future shortfalls in the program's trust funds. When your primary source of guaranteed income faces long-term funding challenges, your personal retirement plan becomes a much riskier bet. The safety net is shrinking just as the number of people needing it is peaking.

The bottom line is that this wave demands personal planning, not just hope. With fewer traditional anchors holding the line, the responsibility for securing a steady income stream has shifted squarely onto individual shoulders. The system isn't failing everyone, but it's failing a lot of people who counted on it. That's why asking the right questions now is so critical.

The Three Essential Questions: Your Personal Retirement Math

The retirement wave is real, but the math on your personal plan is what will determine your peace of mind. It's time to move beyond generalities and ask three common-sense questions that cut to the heart of your financial security.

Question 1: Do I Have Enough in the Register?

The first check is your savings. The widely cited rule of thumb is to have about 10 times your final salary saved by retirement. For a 60s cohort, the average 401(k) balance sits at $573,100. That's a solid sum, but it falls short of the benchmark. It represents roughly 88% of the 10x target, leaving a gap. Think of it like a mortgage: you've saved a good down payment, but you still need to cover the final balance. This gap is the primary reason many retirees worry about outliving their money. The math here is simple: if your savings are below that 10x target, you have a clear goal to reach before you stop working.

Question 2: What's the Real Cost of Staying Healthy?

Next, look at the elephant in the room: health care. A 65-year-old retiring in 2025 should budget for about $172,500 to cover health care and medical expenses throughout retirement. That's a massive sum, and it doesn't even include long-term care. More critically, about 70% of seniors will need some form of long-term care during their lifetime. The costs for that care are steep and rising, with a semi-private nursing home room now costing over $111,000 a year. This isn't a hypothetical expense; it's a near-certainty for a majority of retirees. Your savings need to account for this, or you'll be dipping into your principal much faster than planned.

Question 3: When Should I Start the Paycheck?

Finally, consider the timing of your Social Security income. The full retirement age is not a fixed number; it's increasing. For those born in 1959, the full benefit age is now 66 years and 10 months. Claiming early, at age 62, means a permanent reduction of about 30% in your monthly check. Waiting until your full retirement age gives you the full benefit, and delaying even further can increase it by up to 8% per year. This is a classic trade-off: take a smaller, guaranteed income now, or wait for a larger one later. The decision hinges on your health, your savings, and your need for the cash. But the rule is clear: every month you delay claiming is a month of higher income down the road.

The bottom line is that retirement planning is personal math. You need to close the savings gap, budget for the high cost of health, and time your Social Security income wisely. Answering these three questions gives you a realistic picture of your financial runway.

Bridging the Gap: Simple Steps to Strengthen Your Plan

The analysis shows the gaps. Now, the practical steps to close them. The good news is that many of these actions are within your control, turning a daunting plan into a manageable strategy.

For the savings gap, the focus is on two levers: boosting contributions and timing your income. If you're already saving, maximize your catch-up contributions if you're 50 or older. This is your final chance to accelerate your nest egg. At the same time, consider delaying your Social Security claim. Every month you wait past your full retirement age adds to your monthly check, directly narrowing the gap between your savings and your needs. It's like choosing to earn a higher hourly wage later instead of taking a smaller one now.

Health care planning requires explicit budgeting and supplemental coverage. The $172,500 estimate is a starting point, but it's a floor, not a ceiling. The real risk is the 70% likelihood of needing long-term care. That's not a maybe; it's a near-certainty for most. Start by understanding Medicare's gaps-it doesn't cover routine dental, vision, or long-term care. Then, budget for supplemental insurance to fill those holes. This isn't an optional add-on; it's a necessary expense to protect your principal from being drained by medical bills.

Finally, the cost-of-living adjustment (COLA) provides a modest boost but isn't a silver bullet. The 2.8% increase for 2026 will help, adding about $56 a month on average. Yet, health care inflation often outpaces general inflation. That means the COLA may not fully keep pace with your rising medical costs. Relying solely on it is a gamble. The plan is to use it as a foundation, but not the entire floor. You still need to have your own savings and insurance in place to cover the difference.

The bottom line is action. You can't control the retirement wave, but you can control your response. By maximizing contributions, planning for the high cost of health, and understanding the limits of Social Security's annual raise, you're building a plan that works for you. It's about common sense: save more, plan for the big expenses, and time your income wisely.