Are You on Track for Retirement? What to Do If You’re Not

Are You on Track for Retirement?

And What If You’re Not?

Planning for retirement often raises uncomfortable questions. Many people assume they are “doing okay,” only to realize later that they may not be as prepared as they thought.

The Problem: Most Americans Are Behind

Recent data show that many U.S. workers are not saving enough to retire securely. For example:

• A survey found the median retirement savings among middle-class Americans is about $43,000 for people in their 20s, rising to around $277,000 by their 60s.

• Other research shows that roughly 1 in 3 Americans have less than $5,000 in retirement savings, and 21% have none at all.

• Experts often recommend savings goals based on income multiples. By age 50, that may mean roughly 3.5–5.5 times your salary saved, and by age 65, closer to 7.5–13.5 times.

• Another common guideline is to save about 15% of your pre-tax income each year, including any employer match.

These numbers aren’t just “nice to know.” They matter because entering retirement under-funded can mean a reduced lifestyle, greater dependence on others, or working longer than you planned.

What’s at Work

There are several reasons this retirement shortfall happens:

• Starting too late. The power of compound interest means earlier contributions generate significantly more growth over time.

• Underestimating how much is needed. Many people guess their retirement target rather than calculating it.

• Over-reliance on traditional plans. Depending only on employer plans or standard savings vehicles without diversification can limit long-term outcomes.

• Changing retirement needs. Healthcare costs, longer life expectancies, and market risk all play a role.

Together, these factors make it easy to fall behind without realizing it.

Enter Connect Invest: A Different Approach

At Connect Invest, our mission is to make real-estate-backed, fixed-income investing accessible to everyday investors — so retirement planning isn’t limited to volatile stocks or traditional 401(k)s alone.

Here’s how this approach can help address the challenges above:

1. Predictable income streams
   Real-estate-backed assets can generate regular, fixed-income-style returns, helping create a more stable retirement foundation.
2. An alternative to pure equity risk
   With market volatility, adding real-estate-backed fixed income can provide diversification and potentially smoother performance.
3. Lower barriers to entry
   You don’t need to be ultra-wealthy to participate, allowing early-stage savers, busy professionals, and first-time investors to take action sooner.
4. Designed for long-term growth and income
   Combining tangible asset backing with income-focused returns helps move investors closer to the income-replacement goals retirement planning often requires.

What Your Retirement Should Look Like

While everyone’s situation is different, these are common benchmarks many planners use:

• If you’re in your 30s: Aim for roughly 1× your annual salary saved (or more).

• If you’re in your 40s: Consider targeting 2.5–4× your salary.

• By your 50s: Many aim for 3.5–5.5× their salary, or more if retiring early or maintaining higher spending.

• Annual savings rate: Try to save 15% or more of your pre-tax income, including employer match, if possible.

• Diversification matters: Employer plans, IRAs, alternative income investments (like Connect Invest), and potentially real estate holdings can work together.
  
  

What to Do Right Now

If you’re unsure where you stand, start with a few practical steps:

• Audit your current status. Review your total savings and expected income sources, such as Social Security or pensions.

• Set a realistic target. Base it on your salary, desired retirement age, lifestyle expectations, and healthcare needs.

• Identify the gap. If your current plan won’t get you there, consider adding alternative income assets.

• Be consistent. Starting early and contributing steadily allows compounding to work in your favor.

• Don’t wait. Even small steps taken now can significantly improve long-term outcomes.
  
  

Why This Matters for You

No one wants to reach their later years and discover they don’t have enough — especially after working hard and expecting a comfortable retirement. The data are clear: many Americans will fall short if they rely only on traditional savings strategies.

At Connect Invest, we believe real-estate-backed fixed-income investing can be a meaningful piece of a broader retirement strategy. Whether you’re a first-time investor, a busy professional, or someone seeking a steadier alternative to market-only portfolios, taking action today can help you regain control of your financial future.