A Midyear Retirement Readiness Check

For many investors, retirement planning becomes most tangible at the start and end of the year. Goals are set in January, then revisited during year-end tax and financial planning discussions. But the middle of the year offers an equally valuable opportunity: a chance to evaluate progress, reassess assumptions, and make adjustments before small issues become larger challenges.

At Sequoia Financial Group, retirement readiness is never treated as a standalone calculation. It is part of a broader financial strategy that connects investment management, tax planning, cash flow analysis, estate considerations, insurance review, and long-term family goals into one coordinated approach. That level of integration becomes increasingly important as retirement grows closer and financial complexity increases.

A midyear retirement readiness check can help ensure your strategy remains aligned with both your long-term objectives and the realities of today’s environment.

Reevaluate Spending Expectations

One of the most common retirement planning risks is underestimating future spending needs. Inflation, healthcare costs, lifestyle changes, and support for family members can all reshape retirement projections over time.

The Bureau of Labor Statistics estimates that households age 65 and older spend an average of more than $57,000 annually, with housing and healthcare representing significant portions of those expenses.¹ Meanwhile, Fidelity estimates that a 65-year-old retiring today may need approximately $165,000 in after-tax savings to cover healthcare expenses during retirement.²

Midyear is an ideal time to revisit assumptions around spending, inflation, and lifestyle expectations. For some families, this may reveal opportunities to increase savings. For others, it may confirm that they are already positioned well to meet long-term goals.

At Sequoia, these conversations extend beyond portfolio projections. They often involve coordination between advisors, tax professionals, estate attorneys, and insurance specialists to evaluate how retirement decisions affect the broader financial picture.

Review Savings and Contribution Strategies

A midyear review also creates an opportunity to assess retirement plan contributions and cash flow efficiency.

For 2026, the IRS allows employee contributions of up to $24,500 to 401(k), 403(b), and most 457 plans, with additional catch-up contributions available for eligible participants age 50 and older.³ Health Savings Accounts (HSAs), Roth IRAs, backdoor Roth strategies, and taxable investment accounts may also play important roles depending on income levels and retirement objectives.

Retirement accumulation is rarely about maximizing a single account. Instead, it often requires thoughtful coordination across multiple account types to balance tax diversification, liquidity needs, and future withdrawal flexibility.

That complexity becomes even more important for business owners, executives with concentrated equity compensation, and families navigating multigenerational wealth planning considerations.

Stress-Test the Retirement Timeline

Retirement planning assumptions made several years ago may no longer reflect current market conditions, interest rates, tax policy expectations, or personal priorities.

A midyear review provides an opportunity to evaluate:

• Whether your projected retirement date still aligns with your goals
• How current market volatility may affect long-term income projections
• Whether portfolio risk remains appropriate
• How Social Security timing strategies fit into the broader retirement income plan
• Whether estate and beneficiary designations remain aligned with current intentions

According to the Social Security Administration, approximately 40% of retirees rely on Social Security for at least half of their retirement income.⁴ Coordinating claiming strategies with portfolio withdrawals, tax planning, and legacy objectives can materially impact long-term outcomes.

This is where integrated planning matters most. Retirement decisions rarely exist in isolation. A portfolio adjustment may affect taxes. A gifting strategy may influence retirement cash flow. A business succession plan may entirely reshape income needs.

Retirement Planning Built for Real Life and BUILT FOR YOU

Retirement readiness is not defined by reaching a single number. It is the result of coordinated decisions made consistently over time, decisions that evolve alongside your life, family, and priorities.

At Sequoia Financial Group, our BUILT FOR YOU approach is designed to help clients navigate those decisions with clarity and confidence. By integrating investment strategy, tax awareness, estate planning, risk management, and long-term planning into a coordinated framework, we help families prepare not only for retirement itself but also for the complexities that come with it.

A midyear check-in may not generate headlines, but it can create something far more valuable: alignment between your financial strategy and the life you want it to support.

 

 

Sources

1. U.S. Bureau of Labor Statistics — Consumer Expenditures in 2023
   https://www.bls.gov/news.release/cesan.nr0.htm
2. Fidelity Investments — How to Plan for Rising Health Care Costs
   https://www.fidelity.com/viewpoints/personal-finance/plan-for-rising-health-care-costs
3. Internal Revenue Service — Retirement Topics: 401(k) and Profit-Sharing Plan Contribution Limits
   https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500
4. Social Security Administration — Fast Facts & Figures About Social Security
   fast_facts25.pdf
   https://www.ssa.gov/policy/docs/chartbooks/fast_facts/