What's not enough—and what to do about it.
Key Takeaways
- A safe withdrawal rate helps you estimate the amount of money you can withdraw each year in retirement without depleting your savings.
- The SECURE Act gives taxpayers additional benefits for saving in retirement plans.
- With compounding interest, you earn interest on both the money you’ve saved and the interest you earn. The sooner money is put to work, the sooner it compounds.
Sometimes, saving for retirement is an afterthought. There is no shortage of things to spend our money on today: food, living expenses, education, entertainment, vacations and even philanthropy. Of course, saving for retirement is a priority we all claim, but so often, it tends to be prioritized after the spending has been done.
While many dentists recognize the importance of saving, more than 50% of Incisal Edge’s 2025-26 Dentist Survey respondents said insufficient cash flow is the greatest barrier to saving. While some practice owners are relying on a practice sale or social security to help fund their retirement, experience has shown that these two tactics likely won’t get you there.
CPA Justin Fry says many individuals approach saving in a reactive manner, allocating funds toward retirement only after meeting current spending demands.
“When it comes to saving, many people save what is left after spending,” Justin says. “Rather than what we should be doing, which is spending what is left after saving.”
Understanding What Your Savings Must Support
A simple way to evaluate your savings is to use a 5% safe withdrawal rate, which helps estimate how much you could take out each year in retirement. Under this framework:
- A $1.46 million retirement portfolio, the ideal target cited in a Northwestern Mutual survey, would provide about $73,000 per year.
- That is equivalent to $6,083 per month.
For some households, this level of income in retirement may not fully support the desired standard of living.
A Practical Framework for Improving Retirement Outcomes
One of the most important distinctions between those who make consistent progress toward retirement goals and those who fall behind isn’t income level. It is behavior.
This shift, while simple in principle, establishes a structured approach and the discipline necessary to build meaningful long-term assets:
1. Make Saving a Priority
Treat retirement contributions as a required allocation rather than a discretionary expense. Consistency is the primary driver of progress.
2. Fully Utilize Available Legislative Advantages
While Social Security was created to supplement retirement, it is not designed to function as a primary income source. On their website, the Social Security Administration (SSA) predicts that by 2035, taxes may cover only 75% of scheduled benefits.
“The SSA is making it very clear that Americans need to save for retirement on their own,” says Justin.
That is where the Setting Every Community Up for Retirement Enhancement (SECURE) Act and SECURE 2.0 come in, which incentivize Americans to set up retirement plans with benefits such as expanded IRA contribution eligibility and more flexibility for 529 accounts.
The federal government also recently launched Trump Accounts, which are long-term, tax-advantaged investment accounts for children.
3. Leverage the Impact of Compounding
Time remains one of the most valuable assets in financial planning. Early and consistent contributions allow compounding interest to significantly increase portfolio growth over time.
4. Develop a Forward-Looking Income Strategy
Effective retirement planning requires more than accumulation. It requires clarity around income.
A comprehensive approach includes:
- A plan for how much to withdraw each year so you can enjoy your savings and make it last
- Realistic Social Security assumptions
- Consideration of additional income sources where applicable
From Uncertainty to Clarity
With a disciplined, structured approach to saving, the shift is measurable.
Without a Plan:
- Irregular or insufficient contributions
- Limited visibility into future income
- Reliance on general assumptions rather than specific planning
With a Structured Plan:
- Consistent, prioritized savings behavior
- Improved clarity around retirement income projections
- Increased confidence and financial control
The responsibility for retirement readiness has shifted toward the individual. At the same time, new planning tools and legislative changes have created opportunities for those who take a proactive approach.
Developing an effective retirement strategy requires both structure and informed decision-making. Our team can work with you to assess where you are, identify planning gaps and implement strategies to get you where you want to be. Schdule a complimentary consultation today.
