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When it comes to retirement (and cake), people have their own preferences, so instead of trying to fit into a predetermined box, consider taking a more personalized approach. Here's what to think about.
By
Bonnie Treichel
published
30 March 2026
in Features
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Most people are aware of our country's well-documented retirement crisis.
If you're of a certain age, you can't ignore the grim statistics:
- 19 million (45%) older adult households do not have the income needed to cover basic living costs
- 80%, or about 34 million households, would not be able to manage a serious financial shock
- Scariest of all: Low-income older adults die nine years earlier than those with the greatest wealth
For years, the retirement industry has drilled various catchphrases into our collective consciousness: Know your number, the 4% rule, the 120 minus you rule and so on.
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Sign upTruthfully, retirement isn't a one-size-fits-all equation. We all live differently, so our retirements will also look different.
Instead of fitting retirees into a template or predetermined box, the financial industry should reframe its approach, moving away from target-date funds as a one-size-fits-all and into something more personalized.
I like to think of retirement readiness as a layering process, like baking a cake. Every baker starts with core ingredients (flour, sugar, butter, eggs), but you customize the filling and frosting based on individual tastes.
Similarly, every person should have a strong foundation for retirement, but my plan, for example — as a business owner with no children — will look different than a plan for someone who is a parent and attorney.
Here are some elements to think about when constructing your retirement plan.
About Adviser Intel
The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
Income sources
The base of your retirement will likely be your defined benefit plan (pension), 401(k) plan, IRA or other tax-qualified plan. But as well as retirement accounts, it's important to consider all other sources of income, including investment accounts and Social Security.
If you plan to continue working — consulting or pursuing a side business in retirement — or have income-producing property, factor that into your retirement planning, too.
As you change jobs, make sure you're rolling over your 401(k) into an IRA, otherwise your previous employer can force you into a generic IRA, and your assets can quickly get eaten away by fees.
Tax liabilities
When planning for retirement, don't think just about income, but also consider what you'll owe.
Your 401(k) and IRA distributions are taxed at your future federal (and state) rate, not when you contributed (unless contributed as Roth), which means you may be in a higher tax bracket when you begin receiving benefits.
Withdrawals on long-term investments are taxed as capital gains based on your income bracket.
To offset these liabilities, a growing number of young people are contributing to Roth IRAs, which are funded with after-tax dollars and grow tax-free. From 2016 to 2022, the percentage of twentysomething households with a Roth IRA nearly tripled from 6.6% to 19.2%.
Health care, life insurance and lifestyle
Only 3% to 4% of Americans age 50-plus have long-term care policies, which is a small fraction of the 70% of people age 65 and older who will need these types of services.
When considering what your future life will look life, you must look at the complete picture: Who will take care of you? Where will you live? These decisions have a cost component and will factor into your eventual retirement plan.
Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel, our free, twice-weekly newsletter.
Start planning today
We need to stop thinking about retirement as a switch to flip — a "set it and forget it" mentality. Rather, retirement should be inspiring. It should give you an opportunity to craft a life where you are the centerpiece.
As you begin to layer your own retirement cake, think about what your life looks like when you don't have to work for money.
Make use of all the great information available to you, whether that means reading books, listening to podcasts or engaging a financial adviser.
Many employees have access to free resources through their workplace plan.
Most importantly, don't wait. The more you plan today, the better off you'll be tomorrow.
I explore this topic in greater depth with Jamie Hopkins in our book (coming March 31), Your Retirement Sketchbook: 125 Retirement Planning Lessons from Financial Experts.
Related Content
- Health Care Cost Basics: What You Can Expect to Pay and Ways to Save
- Social Security Basics: 12 Things You Must Know to Maximize Your Benefits
- How to Find Joy and Meaning When You Want to Retire — But Can't Yet
- Retirement is 'Comfortable' for Three in Four Americans, Survey Finds
- Your Retirement Isn't Set in Stone, But It Can Be a Work of Art
This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
TOPICS Adviser Intel Get Kiplinger Today newsletter — freeContact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.
Bonnie TreichelSocial Links NavigationFounder, Endeavor Retirement and Endeavor LawBonnie Treichel, Esq. is the Founder of Endeavor Law and the Founder and Chief Solutions Officer of Endeavor Retirement, a consulting firm dedicated to solving problems for plan sponsors, advisers and service providers in the retirement plan industry. She is a nationally recognized speaker and thought leader on retirement plan governance and best practices. Bonnie serves on the Board of the FinServ Foundation and has been honored with several national awards, including InvestmentNews 40 Under 40 (2023) and the ABA's On the Rise-Top 40 Young Lawyers Award (2022).