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A solid financial plan is key for a comfortable retirement, but are you really sure you have enough squirreled away for retirement?
A 2025 survey by Clever Real Estate asked 1,000 retired Americans how much they believed new retirees needed in investments and savings to live comfortably during retirement — and the answer was a “whopping” $823,800 (1).
For some perspective, in 2024, Clever Real Estate conducted the same study, but respondents thought they would need only $580,310 (2).
That’s a change of opinion to the tune of $243,490 — in just a year.
A dramatic shift like that suggests retirees in America are clearly worried about the prospects of future retirees. In fact, 92% of retirees in the study said the average person underestimates how much money is required to retire securely.
That level of agreement is rare in the world of surveys. But are they right to think future retirees are underprepared?
Here’s why it’s so important to have a retirement plan — and tips for how you can start making one today.
Before getting started, it’s important to note that their doom and gloom doesn’t come from nowhere. It comes from experience.
That’s because a little over half (51%) of retirees who were surveyed by Clever Real Estate said they themselves had no plan if their retirement savings were to run out — and 43% said they even preferred death to financial ruin.
If that’s not enough motivation for you, the numbers support the importance of having a retirement plan. Research from T. Rowe Price found that individuals with a plan had two to four times more wealth when entering retirement compared to those without one (3).
So, having a plan really does pay off. And it’s not just about the numbers.
“So much of retirement preparation focuses on accumulating assets — and that’s important,” according to Allianz Life’s Vice President of Consumer Insights, Kelly LaVigne (4). “But it is critical to understand how those assets will be able to fund your life after you retire.”
In other words, it’s about peace of mind.
“A retirement income strategy will help reduce the number of ongoing decisions you need to make,” she added.
If you’re looking for that peace of mind when it comes to starting a retirement plan, a good first step might be to consult a financial advisor.
A financial advisor can help crunch the numbers and build a strategy that works for you. But hiring an advisor can be a lifelong commitment, which might make or break your retirement.
That’s why finding reliable advisors is crucial.
Now, finding the right advisor is easier than ever with Advisor.com, a platform that connects you with a vetted financial expert near you for free.
Just enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert best suited for your needs based on your unique financial goals and preferences.
Even with the help of a financial advisor, you still might not know how much you need — and you wouldn’t be alone.
According to a 2025 survey by Allianz Life, about 45% of Americans have no idea how much they want to save up for retirement (5). They are basically “winging it” and hoping for the best.
That’s why it is important to write things down.
A written financial plan can sharpen your focus and help you define your goals. Once you have those in mind, you can also start deciding how to get there by calculating a monthly or annual savings rate (6).
And yet, despite these benefits, the Transamerica Center for Retirement Studies found that only 29% of workers in America have a written plan for retirement (7).
If you’re looking for an edge, then setting out your plan in writing might be it.
Knowing how much you need to save for retirement is one side of the equation. Knowing how much you’re spending is the other. Maximizing your financial future often starts with a better budget.
A quick daily check-in of your accounts can show you exactly where your money is going.
An app like Rocket Money can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.
This can help you cut unnecessary costs, and then you can manually redirect savings straight into your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.
Rocket Money’s intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders and budgeting basics, while premium features — like automated savings, net worth tracking, customizable dashboards and more — make it easier to stay on top of your retirement contributions and overall financial goals.
Once you have a written plan and budget in place, you still might have some anxiety about how much you can actually draw from your savings to fund your golden years.
Almost half of Americans are in the same boat, with 45% saying they don’t know the best way to draw from their savings when they retire, according to Allianz Life. What’s more, even time-tested strategies like the 4% rule are under scrutiny from the likes of investment firms such as Morningstar (8).
And ignorance isn’t bliss when it comes to retirement income.
“If you don’t know how you will draw from your retirement assets for income, then you aren’t ready to retire,” says LaVigne.
That’s why it could be a good idea to make sure you’re maximizing your guaranteed income, which for most Americans means Social Security benefits.
According to the Social Security Administration, the average monthly benefit is $2,071, as of January 2026 (9). And while that might not seem like a lot, it is enough for 27% of retirees to rely on as their sole income and more than half of the income of 67% of retirees (10).
Factoring in how much you will be getting in benefits could certainly help you make your retirement plan. It also helps with timing when you apply to start receiving them.
On top of that, you can research other benefits, like Medicare.
If you want to educate yourself on all the benefits available to you in retirement, you might want to consider joining senior-focused organizations like AARP.
As one of the most trusted organizations for older Americans, they can help you find discounts on almost everything — from prescriptions and dental plans to travel, entertainment and insurance.
AARP members get access to guides that can help you make the most of Social Security, choose the right Medicare plan and uncover other government benefits — potentially saving you thousands.
An emergency fund is a good idea no matter your age. But it’s especially important for retirees.
That’s for one very good reason: sequence of returns risk. This refers to a scenario when one market downturn early in retirement forces you to sell off assets at low prices for income, depleting your portfolio to the point where you can’t recover.
Having an emergency fund of 18 to 24 months can help mitigate that risk. If that market turns back around during this period, it could help save your nest egg.
“An emergency fund is your retirement superpower,” says Patti Black, a financial advisor at Savant Wealth Management in Birmingham, AL (11).
“It cushions you against financial shocks, absorbing costs like medical or dental surprises, home or car breakdowns, and family emergencies.”
A high-yield account like a Wealthfront Cash Account can be a great place to grow your emergency funds, offering both competitive interest rates and easy access to your cash when you need it.
A Wealthfront Cash Account currently offers a base variable APY of 3.30%, and new clients can get a 0.75% boost during their first three months on up to $150,000 for a total APY of 4.05%. That’s more than 10 times the national deposit savings rate, according to the FDIC’s February report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
But as you approach retirement, it’s always worth remembering that emergencies still happen after retirement, or even after your death for those who are left behind.
That’s why other options like life insurance are so important.
If you want to ensure your family isn’t hit with unexpected costs after your death, consider signing up for term life insurance from Ethos.
As a licensed third-party insurance administrator, Ethos has joined forces with some of the industry’s top insurance carriers, such as Banner Life, TruStage Financial and Ameritas Life Insurance. The platform offers simple and affordable coverage for a set period of time — typically between 10 and 30
Ethos gives you the flexibility to select coverage amounts ranging from $2,000 to $100,000. Premiums start at just $9.80 a month and are guaranteed throughout the term.
