Nearly two-thirds of savers worry they’ll run out of money in retirement, according to BlackRock. It doesn’t help that savings are falling. Median savings rates fell from 12% in 2022 to 10% in 2025.
That can leave Americans sweating as they peer down the road to retirement.
That’s why staying on top of your retirement planning progress is crucial to ensuring you have enough money for a comfortable retirement.
Curious about whether your retirement planning is going as it should? Here are signs that financial experts say indicate your retirement is on track.
1. You are hitting your savings targets
Establishing a baseline for savings is the first step toward a predictable future. While every situation is unique, a classic rule of thumb still carries weight today.
“One of the best books on the subject, ‘The Richest Man in Babylon,’ says to save not less than one-tenth of your earnings,” says Charles Wareham, a financial advisor and CEO at Vaylark Financial Services.
He tells Money Talks News that saving 10% of your pay is a great place to start, but he notes that meeting a financial advisor can help determine if that number fits your specific lifestyle goals.
Whatever your target, if you’re hitting it — that’s a win.
2. You are financially literate
If you maintain a budget and understand the relationship between your spending and your earnings, you possess the literacy required for a successful retirement. Being comfortable with your finances allows you to spot when something is off track.
Regularly checking in on your budget, retirement accounts, and debt gives you the opportunity to catch and correct problems before they head in the wrong direction.
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3. You have automated your contributions
If your retirement savings move from your paycheck to your retirement accounts without you lifting a finger, you are already ahead of the curve. Automation removes the temptation to spend those dollars elsewhere.
“Think of it this way: That is how the IRS gets their money from you,” Wareham says. “They automatically take it out of your paycheck, and they get paid every time you do.”
He suggests paying yourself first using the same method to make saving out of sight and out of mind. While you might feel a slight pinch at first, most people adapt quickly and eventually forget they are even saving.
4. You review your retirement statements
Never looking at your retirement account statements is a “recipe for disaster,” says Chris McMahon, a chartered financial consultant and accredited wealth management advisor who serves as president and CEO of Aquinas Wealth Advisors.
Yet some people go years, or even decades, without checking their retirement account statements, McMahon tells Money Talks News.
“Often these statements will provide additional advice such as performance relative to the market or risk level compared to most folks your age,” he explains. “In short, these quarterly reminders can have a tremendous positive impact on where you may land in retirement. In the hunt for a safe and comfortable retirement your plan statement is gold.”
“If your account has way more stocks than the average, you may be taking more risk than you realize,” adds McMahon. “Be sure to check the performance breakdown of the individual holdings in your account listed on your statement. If one of your holdings is performing much worse than the rest, this could be a red flag telling you to consider replacing that holding.”
5. Your debt is under control
Entering your post-career years without the weight of a mortgage, car loan or credit card balance is a significant indicator of success. However, carrying some debt is not necessarily a deal-breaker if your cash flow is strong.
Wareham notes that while paying down debt lightens the expense load, you can still enjoy your retirement if you don’t.
“I wouldn’t say it’s the end of the world if you have some debt going into retirement, but probably it’s nice not to have that,” he says.
He adds that many clients retire with a mortgage or car payment successfully as long as they have sufficient retirement income to cover those expenses.
6. You have a sufficient emergency fund
A fully funded emergency account is a shield for your retirement assets. This cash allows you to weather a medical crisis or an expensive home repair without dipping into your 401(k) or IRA.
Having liquid money available that is not intended for daily use prepares you for the financial realities of retirement. It ensures that your long-term investments can stay invested, even when life gets unpredictable.
About 18% of Americans don’t have an emergency fund, according to a Bankrate survey, so having one is a good sign.
7. You plan for health care
A solid plan accounts for more than just monthly bills. It must factor in the larger risks that can decimate a portfolio in a short window.
“If you make it to age 65, you have a 50/50 shot of going into long-term care, decimating your savings. That’s one of the biggest risks we deal with,” Wareham says.
The average annual cost for in-home care is $51,480, and the average rises to $66,132 for assisted living and $112,420 for a nursing home, according to government reports. Being prepared for that cost can prevent surprises from derailing your retirement.
8. You are planning for future tax hikes
If you are thinking about the tax man now, you are likely on the right track. Many experts believe tax rates will have to rise in the future to address national fiscal challenges.
Wareham is a big fan of Roth accounts over traditional accounts because the former helps shield you from taxes in retirement. That’s because withdrawals from Roth accounts are typically entirely tax-free.
When you withdrawal money from a traditional account, on the other hand, it’s typically considered taxable income.
He says that if you save in a traditional account, you are deferring the tax bill into a future, where there is a strong chance tax rates will be higher. Paying the tax now to make the money tax-free forever can be a savvy move in a low-tax environment.
9. Retirement worries do not keep you up at night
If you’re confident enough in your retirement plans to fall asleep when your head hits the pillow, that’s one sign that your retirement is likely on track, according to McMahon. Listening to your inner voice offers insight into steps you may still need to take with retirement planning.
If you’re asking yourself whether you’ll be OK, whether you’ll have enough money, or whether you’ll have to rely upon your children after you retire, that’s your inner self pushing you to address the problem, says McMahon.
“Often, people who realize that they may fall short simply ignore the problem,” he adds. “They rationalize, deflect, and steer conversations away from any real conversation around retirement readiness.”
However, those who are on track tend to regularly review and refine their plans. They are glad to discuss the topic and are open to suggestions about methods to improve their chances of having a rewarding retirement.
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