Data shows the retiring generation lacks retirement preparation, and many have not saved enough, particularly women.

According to the National Institute on Retirement Security‡ (NIRS) most Americans will not have enough money for a financially secure retirement.

Working with a professional can help alleviate financial insecurity through better preparation based on your individual goals. There are several retirement vehicles you should be aware of as you consider your retirement options:

  • 401(k) plan – a retirement savings plan offered by many employers that allows employees to contribute a portion of their paycheck, often with employer matching.
  • Traditional or Roth individual retirement account (IRA) – a tax-advantaged personal savings account that individuals can contribute to.
  • Pension plan – a retirement savings plan offered and funded by some employers that provides set monthly payments for life or a lump-sum at retirement.
  • 403(b) plan – a retirement savings plan offered by some tax-exempt organizations that operates similar to a 401(k) plan.

Social Security retirement benefits – a monthly benefit for older Americans funded through employee and employer payroll taxes. In addition to reviewing specific retirement accounts, here are four key considerations to help you better prepare for retirement, including:

Generate income using assets and investments

Discuss with your financial advisor how to generate income during retirement with the money you’ve set aside for this time in your life. Your planner can help you separate your assets into three groups: taxable, tax-favored and tax-free. If you take a blended approach to meeting your retirement distributions needs, your money may be more likely to last longer. Your advisor can also help you look into income-producing assets, such as rental properties, dividend stocks, or other more conservative investments like money market accounts and time deposit accounts. Having a passive way to generate income as part of your portfolio can help supplement any retirement savings you’ve built up during your working years.

Diversify your portfolio

Typical recommendations emphasize having a portfolio of assorted investments so your risk is diluted across asset types. That also means you don’t have to rely completely on conservative, income-producing investments—you may have an opportunity for more aggressive growth investments. Regardless, playing it too conservative could mean a loss of opportunity over time. Adjust your rate and risk to your needs when necessary, and don’t be afraid to spend capital from your retirement portfolio if it makes sense.

Traditional IRAs, 401(k)s, 403(b)s, and self-employed plans are structured for you to withdraw from them over your lifetime. You might be nervous spending down these accounts, but a financial advisor can help you distribute these funds appropriately over the course of your retirement so you can live comfortably.

Taxes, timing, spending

These three items are the most important factors to help you create income during your retirement. You should understand your tax obligations because tax rates determine acceptable savings withdrawals. It’s also important to carefully time your retirement. The point at which you begin taking money from your retirement accounts can make a significant difference in the amount that is available several years into your retirement. It is also important to carefully time when you start receiving Social Security benefits so you can maximize that income.

Finally, it’s vital to spend wisely during this time in your life to ensure that you will have enough funds to last. Do you want to splurge on a Hawaiian vacation during your retirement? If so, plan for it in advance. Talk to your advisor about any major spending that may occur during your retirement. While you might not be on a completely fixed income, you still need to be mindful of the money that’s coming and going.

Understand contribution limits

Another nice aspect of preparing for retirement is that all account contribution limits start back over at zero when the calendar resets. This means you have the entire year to reach the maximum limits for each account such as IRAs, Roth IRAs, health savings accounts (HSAs), and more. Make sure you carefully plan your monthly contributions, so you avoid going over the maximums. Proactive contribution planning can also help simplify your tax planning.

  • In 2026, the Roth IRA limit is $7,500 (or 100% of your earned income, if less).
  • The maximum IRA catch-up contribution for those age 50 or older is $1,100, increased from $1,000 in 2025.
  • You can contribute to both a traditional IRA and a Roth IRA in 2026, but your total contributions cannot exceed these annual limits.
  • If you participate in an employer-sponsored 401(k) plan, you will be able to contribute $24,500 in 2026. This limit also applies to 403(b) and 457(b) plans, as well as the Federal Thrift Savings Plan. If you’re age 50 to 59 or 64 and older, you can also make catch-up contributions of up to $8,000 to these plans in 2026. Special catch-up contributions (up to $11,250) can be made between the ages of 60-63.

If you participate in more than one retirement plan, you are held to each limit which is another great reason to outline your contributions by amount and account.

Educate

Take the time to educate yourself before and during your retirement. The better you understand what investment options and savings plans are available to you, the more opportunity you have for your money to continue to grow after retirement. Don’t be afraid to ask for help, an advisor can help suggest ways to increase your retirement savings. Start planning early so you can enjoy this time in your life, no matter what your plan to accomplish in your golden years.

Interested in learning more about Private Wealth Management? With UMB, you have guiding support from financial advising and investment portfolio management, to wealth-building strategies and retirement and legacy preservation plans.

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.

Financial planning services are offered by UMB Private Wealth Management. UMB Private Wealth Management is a division within UMB Bank, n.a. that manages active portfolios for individuals, fiduciary accounts, employee benefit plans, endowments and foundations. UMB Bank, n.a., is a subsidiary of UMB Financial Corporation.

Securities are offered through UMB Private Wealth Management.

Securities and insurance products are:

NOT FDIC INSURED • NO BANK GUARANTEE • NOT A DEPOSIT • NOT INSURED BY ANY GOVERNMENT AGENCY • MAY LOSE VALUE