How to Tell If You're Still on Track to Retire in 2028

If you're aiming to retire at some point in 2028, you're almost close enough to start a weekly countdown. And that's exciting. But it's also important to make sure your retirement plan still holds up well.

Here are some ways to tell.

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1. Confirm that your savings can support your spending

In recent years, inflation has driven costs up, so it's important to make sure your nest egg can still support the lifestyle you're hoping to maintain. To start, add up your annual expenses, and be sure to account for both discretionary and essential costs.

Keep in mind that once you no longer have to go to work every day, you'll need different ways to stay busy. Some of those might cost money, so be sure to account for them.

Once you have a rough estimate of your annual spending, compare it to your projected annual income from your savings. You don't necessarily need to land on a specific withdrawal rate right now. As a general rule, if you have 25 times your annual estimated spending saved minus what you expect from Social Security, you're in good shape.

So let's say you'll need $100,000 a year to cover your costs and Social Security will pay you $30,000 a year in benefits. That means you need $70,000 from your IRA or 401(k) per year to make up the difference.

If you have $1.75 million saved, you should feel pretty confident in your ability to keep up with your expenses in retirement. If you're nowhere close, you may want to either rethink that 2028 retirement date or consider a different lifestyle.

2. Figure out when to claim Social Security

Just because you're planning to retire in 2028 doesn't mean you'll automatically claim Social Security in 2028. If you won't be 62 at that point, you'll be too young to get benefits. And even if you're old enough to start collecting those monthly checks, it could pay to hold off on filing so your benefits can grow.

One thing to consider is waiting until full retirement age to claim Social Security, which is 67 if you were born in or after 1960. Filing before that point permanently reduces your benefits.

You should also know that for each year you delay Social Security past full retirement age, your monthly benefits get an 8% increase for life. That's significant because Social Security benefits are eligible for an automatic inflation adjustment every year. Your savings aren't.

Sure, you can invest your savings strategically. And if you do, they might outpace inflation even better than Social Security. But there's no guarantee. So filing for benefits at the right time could give you more peace of mind.

3. Know what you'll do with your time

When many people think about retirement, they focus on leaving a job or career behind. They don't necessarily stop to think about what they're retiring to.

If you skip that crucial step, retirement could turn out to be a big disappointment. You might struggle to fill your days in a meaningful way, and you might quickly grow bored, restless, and unhappy.

In the coming months, think about what you want to spend your retirement doing. It could be a combination of learning new things, volunteering, and reconnecting with friends and family. The key is to have a plan either way.

If you're targeting a 2028 retirement date, now's the time to review your spending and anticipated income, come up with a Social Security strategy, and figure out what you'll do with your newfound free time. Taking these steps now and in the coming months could help you approach retirement with a lot more confidence.

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