By Laura & Gabe Walters — Steadyworth

Most people wonder at some point:
“Am I doing enough for retirement?”
“How much should I be saving?”
“What accounts should I be using?”
“How do I know if I'm actually on track?”

You're not alone. Retirement planning feels confusing for a lot of smart, successful people simply because no one ever taught us how any of this works.

In this blog, we’re breaking down exactly how retirement planning evolved, why so many people feel behind, and the 5 core questions that determine whether you’re on track — or if you need to make some adjustments.

Let’s make retirement planning simple, doable, and clear.

How We Ended Up in a Retirement Crisis (…and why it’s not your fault)

Before the 1980s, retirement looked very different. Our grandparents and many of our parents relied on pensions — guaranteed lifetime income funded by the employer, not the employee.

Then came a massive shift.

The Birth of the 401(k)

In 1978, section 401(k) was introduced, allowing employers to replace pensions with employee-funded retirement plans.
Translation:
Responsibility moved from the company → to you.

But there was a problem:
No one explained how any of this worked.

So we now have an entire generation entering retirement with:

• not enough saved
• underfunded 401(k)s
• little education about investing
• rising healthcare and living costs
• longer life expectancies

A 2024 Forbes survey found that 79% of Americans believe we’re in a retirement crisis, and more than half don’t think they’ll have enough to retire securely.

This isn’t about shame — it’s about awareness.
Because once you understand the problem, you can finally fix it.

Why Saving for Retirement Feels So Hard

There are a lot of barriers at play — and many aren’t your fault.

1. Psychological Barriers

Our brains prefer the status quo.
Saving requires change.
Change requires intentionality.

People often:

• procrastinate
• underestimate what they’ll need
• feel overwhelmed
• avoid making decisions

2. Financial Barriers

Especially if you're:

• self-employed
• freelancing
• working in the gig economy
• juggling inconsistent income

You don’t have a built-in 401(k), employer match, or HR team setting things up for you.

3. Knowledge Gaps

This one is huge.

Studies show:

• People with higher financial knowledge are dramatically more likely to use retirement accounts and invest.
• People with low financial knowledge?
  73% have under $1,000 saved for retirement.

Knowledge = confidence.
Confidence = action.
Action = wealth.

This is exactly why Steadyworth exists — to close the education gap and help you build real confidence with your money.

The 5 Questions That Tell You Whether You’re on Track for Retirement

Retirement planning is actually very simple.
It comes down to these five core questions:

1. What accounts are available to me?

Start with what you have access to today.

Employer-sponsored plans (401k, 403b, etc.)

If your job offers a plan — start here.
It’s automatic, simple, and often comes with a company match (free money).

If you don’t have a workplace plan

You can (and should) open:

• Traditional IRA
• Roth IRA
• Solo 401(k) (for self-employed)
• SEP IRA

Each has tax advantages, contribution limits, and rules to understand — but the important thing is simply to start.

Retirement accounts are portable, too. You can take them with you when you change jobs.

2. How much can I afford to contribute?

This is the game changer.

Here are the 2025 contribution limits:

Account	Under 50	50+ Catch-Up
401(k)/403(b)	$23,500	+$7,500
Traditional IRA	$7,000	+$1,000
Roth IRA	$7,000	+$1,000

But the real question is:

👉 How much can YOU afford to invest without hurting your lifestyle today?

Start small.
Increase over time.
Stay consistent.

One of the best tools you can use is the ADP Net Pay Calculator — plug in your paystub details, and you can actually see how different contribution levels affect your paycheck.

3. How does this impact my tax strategy now and later?

Every retirement account is taxed in one of three ways:

Tax Now, Grow Tax-Free (Roth IRA / Roth 401k)

You pay taxes today → your investments grow tax-free → you withdraw tax-free in retirement.

Tax Later (Traditional 401k / Traditional IRA)

You get a deduction today → money grows → you pay taxes when you withdraw in retirement.

Taxable Accounts (Brokerage Accounts)

More flexible, but gains are taxed along the way.

Smart retirement planning uses all three.
This creates multiple buckets in retirement so you can strategically manage your tax bill.

4. What non-retirement money do I have available for emergencies?

This is the part most people forget.

You CANNOT treat your 401(k) like a piggy bank.
Taking money out early triggers:

• taxes
• 10% penalties
• loss of compound interest

You need non-retirement savings for:

• emergencies
• medical bills
• unexpected expenses
• life changes
• home repairs

This prevents you from disrupting the compounding happening inside your retirement accounts.

5. What lifestyle do I want — and how much will it cost?

This is the real question.

Retirement isn’t an age — it’s a number.
And that number depends entirely on your lifestyle.

Think about:

• Where you want to live
• How often you want to travel
• Whether you’ll still have a mortgage
• Healthcare costs
• Support for kids/grandkids
• Hobbies and leisure
• Charitable giving

Most people assume they’ll spend less in retirement.
But many spend the same or more — especially in the early years.

This is why running your numbers through a retirement calculator is so powerful.
It gives you clarity, confidence, and a real target.

A Quick Example: What Retirement Could Look Like

Let’s say you’re:

• Age 32
• Earning $180,000/year
• Have $100,000 already saved
• Contributing 12% to your 401k
• Planning to retire at 67

With reasonable assumptions, you might end up with:

👉 $6.6 million saved

That may more than cover:

• lifestyle expenses
• healthcare
• inflation
• travel
• upgrades
• long life expectancy

But if you only contributed 3%?

👉 You may run out far sooner than you expect.

Seeing the numbers is motivating.
It turns a vague fear into a clear plan.

So… where should you start?

If you're overwhelmed, start with these simple steps:

1. If you have a 401(k), contribute something — anything.

Even 3–5% gets the momentum going.

2. If you don’t have a workplace plan, open an IRA.

Fidelity, Schwab, Vanguard, Robinhood — all easy.

3. Increase your savings rate every year.

Even 1% more per year adds up fast.

4. Build a real emergency fund.

Protect your retirement money from being raided.

5. Run your numbers through a retirement calculator.

Clarity will change your confidence.

And if you need help, this is literally what we do.

Steadyworth doesn’t manage your money for you.
We teach you how to manage your own money, build your own plan, and feel confident doing it.

Final Thoughts: Retirement Doesn’t Have to Feel Scary

You don’t need to figure everything out today.
You just need to start.

Retirement is built:

• one decision at a time
• one contribution at a time
• one year at a time

Your future self will thank you for starting now.

If you want clarity on which accounts to use, how much to save, or what steps to take next, you can book a free 15-minute call with us anytime — we’re here to help you design a life (and future) you’re excited about.

Check out the Sunday's with Steadyworth Episode: