5 Signs Your Retirement Plan Is Off Track (and What to Do)

The clearest signs your retirement plan is off track are these: you don't know your real monthly number, you're counting on Social Security to do more than it can, you have no plan for taxes or health costs, your money is all in one bucket, and you haven't checked the plan in years. None of these means you've failed. They mean it's time for a tune-up.

When I sit down with families in Alpharetta, Johns Creek, and across Gwinnett, these five patterns come up again and again. Here's how to spot each one, and what to do about it.

Key takeaways

• A retirement plan is off track when it rests on guesses instead of a written budget and a verified Social Security estimate.
• For anyone born in 1960 or later, full retirement age is 67, and claiming at 62 cuts the monthly check by 30% for life, according to the Social Security Administration (SSA).
• Taxes and Medicare costs don't stop in retirement. Up to 85% of Social Security can be taxable, and higher incomes pay more for Medicare Part B.
• Fixing a plan usually means small, boring moves: a real budget, catch-up contributions, a tax look, and a protected-income piece.

Sign 1: You don't know your monthly number

Ask yourself two questions. How much will my household spend each month in retirement? And how much reliable income will come in? If you can't answer both within a few hundred dollars, your plan is running on hope.

Most people know their account balances. Fewer know what those balances can safely produce every month for 25 or 30 years. That gap is where plans quietly go off the rails.

Sign 2: You're counting on Social Security to carry the load

Social Security is the foundation for most Georgia retirees, but it was never built to be the whole house. Three facts from SSA matter here:

• If you were born in 1960 or later, your full retirement age is 67. Claim at 62 and the benefit is permanently reduced by 30%.
• Waiting past full retirement age adds 8% per year in delayed retirement credits, up to age 70.
• The maximum benefit for someone retiring at full retirement age in 2026 is $4,152 a month, and very few people qualify for the maximum.

If your plan assumes a bigger check than your my Social Security statement shows, or assumes you'll claim early and still have plenty, that's a warning sign. I walk through the claiming trade-offs in Social Security at 62 vs. 67 vs. 70.

Sign 3: You have no plan for taxes or health costs

Two expenses surprise more retirees than any others: taxes and Medicare.

Taxes. Withdrawals from a traditional 401(k) or IRA are generally taxed as ordinary income. On top of that, the IRS says up to 50% of your Social Security can be taxable once "combined income" passes $25,000 (single) or $32,000 (married filing jointly), and up to 85% above $34,000 or $44,000. Georgia is friendlier: the state doesn't tax Social Security, and residents 62 and older can exclude up to $35,000 of retirement income ($65,000 at 65 and older) per person, per the Georgia Department of Revenue. But federal taxes still apply. See Is retirement income taxed in Georgia? for the details.

Medicare. The standard Part B premium for 2026 is $202.90 a month, according to the Centers for Medicare & Medicaid Services. If your modified adjusted gross income from two years earlier is above $109,000 (single) or $218,000 (joint), you pay an income-related surcharge. A large IRA withdrawal or Roth conversion in one year can push you over that line two years later.

Required minimum distributions. The IRS generally requires withdrawals from traditional IRAs and workplace plans starting at age 73. Skipping one can trigger a 25% excise tax (10% if corrected quickly). A plan that ignores RMDs often has a tax problem waiting in the 70s.

Get your free retirement income review

Sign 4: Everything is in one bucket

Some people have everything in the stock market. Others have everything in cash and CDs. Both are off balance in different ways.

All-market plans face what planners call sequence risk: a bad run of returns in the first few years of retirement, while you're also withdrawing, can do lasting damage. All-cash plans face a quieter problem. Prices keep rising, and a fixed pile of savings buys less every year.

SSA estimates that a man reaching 65 in 2026 can expect to live to about 84, and a woman to almost 87. Many will live well past that. A plan with no growth and no protected income is hard to stretch over 20 to 30 years.

Sign 5: You haven't reviewed the plan in years

Life changes. Contribution limits change. Tax rules change. Health changes. A plan written in 2019 and never touched is a plan based on a world that no longer exists.

Signs of a stale plan: out-of-date beneficiaries, a 401(k) allocation you never revisited, and a retirement date that moved without the numbers moving with it.

What to do if your retirement plan is off track

1. Write down the monthly number. List today's spending, then adjust for what goes away (commuting, payroll taxes, the mortgage if it'll be paid off) and what goes up (health care, travel, home repairs).
2. Pull your Social Security statement. Create a my Social Security account at ssa.gov and use the real estimate at 62, 67, and 70, not a guess.
3. Use the catch-up room if you're 50 or older. For 2026, the IRS allows $24,500 in 401(k) deferrals plus an $8,000 catch-up at 50 and older ($11,250 at ages 60 to 63). IRAs allow $7,500 plus a $1,100 catch-up.
4. Get a tax look before you retire. A CPA or tax professional can map out which accounts to draw from first and whether partial Roth conversions make sense. I'm not a tax advisor, so I always bring one into the conversation.
5. Build a protected-income piece. For some families, that's a pension plus Social Security. For others, it means using part of their savings for a fixed or fixed-indexed annuity that can produce a steady monthly payment. Annuities have surrender charges, possible rider fees, and a 10% IRS penalty on earnings withdrawn before 59½. Guarantees are backed by the claims-paying ability of the issuing insurer, and they're not right for everyone.
6. Put a review on the calendar. Once a year, check beneficiaries, allocation, spending, and the retirement date.

Frequently asked questions

How do I know if my retirement savings are on track?

Compare what your savings can reasonably produce each month, plus Social Security and any pension, to what you expect to spend. If the gap is small or zero, you're on track. If you can't do the comparison at all, that's the first thing to fix.

Is it too late to fix my retirement plan at 55 or 60?

No. Catch-up contributions, a later or part-time retirement, a smarter Social Security claiming date, and a tax plan can each move the needle. The sooner you start, the more options you keep.

Should I claim Social Security early if my plan is behind?

Sometimes early claiming is the right call, especially for health reasons or if you've stopped working. But a 30% permanent cut at 62 (for those born in 1960 or later) can make a shortfall worse over a long life. Run the numbers for your household before deciding.

Can an annuity fix an off-track retirement plan?

Not by itself. An annuity can turn part of your savings into predictable income, which helps with the "monthly number" problem. It can't create money you didn't save, and it comes with surrender charges and limits on liquidity. It's one tool, not the whole plan.

Ready for a second look?

If any of these five signs sounded familiar, let's sit down and build the written plan. I serve Georgia residents from our Alpharetta office at 126 N Main St, and the first review is free.

Get your free retirement income review

Local help in north metro Atlanta. Tai meets clients at 126 N Main St in downtown Alpharetta, GA 30009, and by phone or Zoom anywhere in Georgia. We work with families in Alpharetta, Johns Creek, Milton, Roswell, Cumming, Duluth and Suwanee (all service areas). Related: Retirement income planning · 401(k) & IRA rollovers. Book a free call or call (470) 470-5593.

Tai Nguyen is a licensed life insurance agent in Georgia (License #3784707, NPN 21496686). This article is for educational purposes only and is not tax, legal, or investment advice. Consult a qualified tax professional about your situation. Insurance and annuity guarantees are backed by the claims-paying ability of the issuing insurance company. Annuities and life insurance are not FDIC insured. Retire With Tai serves Georgia residents only.