President Donald Trump announced a federal savings match plan for private-sector workers during his 2026 State of the Union speech.

If your FRA monthly benefit is $2,778, for example, waiting until 70 would boost that to $3,575. Starting at 62, though, will result in a monthly payment of just $1,822. The Social Security Quick Calculator can give you a good idea of what claiming benefits early versus waiting until full retirement age (or later) will look like.

The problem with overreliance on Social Security.

The reality is sobering: The average 401 (k) balance of a Gen Xer is about $190,000, while the average balance for Boomers nearing or already in retirement is about $250,000. 2 Those drawdowns at 4% would replace about $10,000 a year—a fraction of most household budgets. Clearly, lump sums alone do not reveal whether you can sustain your lifestyle.

Too many retirement plans are built around a single savings target. In reality, longevity, healthcare costs, market volatility, and evolving personal goals demand a far more flexible approach. A durable retirement strategy is not about hitting a number.

Wealthy retirees often diversify beyond traditional retirement accounts by building passive income streams. This might include dividends, rental income, royalties, or income from small businesses that continue to generate cash flow without constant involvement.

Explore the pros and cons of retiring in Nashville, from tax benefits and healthcare costs to culture and an active, connected lifestyle for retirees.