The Personal Finance Podcast

Episode: How to Plan Your Retirement (By Age!)

Host: Andrew Giancola

Date: April 6, 2026

Episode Overview

In this rich and practical episode, Andrew Giancola breaks down an age-by-age roadmap for planning retirement. Starting with a step-by-step method to calculate your unique "retirement number," he then provides tailored advice for your 20s, 30s, 40s, 50s, and 60s. The episode’s core message: Track your retirement plan annually—your unique number and life circumstances change with each decade. Andrew urges listeners that retirement isn’t an age, but a number—you can (and should) plan for it early and revisit your progress often.

How to Find Your Retirement Number: Step-by-Step

[00:45] - [21:50]

Andrew starts the episode by walking listeners through a detailed process to determine their “retirement number”—the amount you need to have invested to retire comfortably and safely. Here’s his framework:

1. Calculate What You Spend Today

• Pull out your bank statements or use an app (e.g., Monarch Money) to see yearly spending.
• Calculate your average monthly spend and multiply by 12 for the annual figure.
• Quote: "One of the most important metrics that you need to know is figuring out where you stand right now." (Andrew, 01:50)

2. Adjust for Expenses That Will Disappear

• Remove costs you won’t have in retirement (e.g., mortgage, kids’ expenses, car payments).
• Quote: "We want to take out all the expenses that we do not anticipate being part of our budget in retirement." (07:12)

3. Add Anticipated Healthcare Costs

• Healthcare expenses rise significantly with age—average couple spends over $300,000 in retirement.
• Use an HSA where possible for tax-advantaged savings.
• Quote: "Healthcare costs are continuing to rise...making sure you have enough on hand for healthcare is very important." (10:10)

4. Inflate Your Number For the Future

• Use an inflation calculator to project the future cost of your annual needs.
• Quote: "This is why we invest our dollars for retirement...to outpace inflation." (12:52)

5. Add Up All Income Sources in Retirement

• Social Security (check estimates at ssa.gov)
• Pensions (use after-tax figures)
• Rental, business, passive income (use net figures)
• Quote: "Retirement is not an age. Retirement is a number. Once you hit this specific number, you will be able to retire." (15:34)

6. Find the Gap

• Subtract these income sources from your inflated annual needs.
• The remaining gap = what you need your investments to generate.

7. Calculate Portfolio Needed

• Use a safe withdrawal rate (3-5%, the “4% rule” is a common baseline).
• Example Calculation: If you need $60,000/year from your investments and use a 4% withdrawal rate, you need $1.5M ($60,000 ÷ 0.04).
• Quote: "Your annual gap number, divided by your withdrawal rate, equals your retirement number." (19:05)

Planning For Retirement By Age

In Your 20s

[26:41] - [34:57]

• Track your retirement number annually—your life will change rapidly.
• Prioritize: Get your 401k employer match first (“free money”); open a Roth IRA early.
  • "Getting that 401k match is going to boost your retirement by hundreds of thousands, if not millions." (28:27)
• Aim to save 20% of income—"If you save less than 20%, you're going to be working for a very long period of time." (30:33)
• Focus on milestones: First $10k, $50k, $100k saved/invested. "Your savings rate does all the work early. Compound interest takes over later."
• Build systems and automation—set up the habits now to make future adjustments easier.
• Memorable Advice:
  "The behavior that you build right now will save you so much going forward." (34:09)

In Your 30s

[34:58] - [43:44]

• Plot twist decade: Major life changes, higher income but rapidly rising obligations.
  • "Your 30s is what I call the dangerous decade...if you fall into money traps, you really are going to have to drastically change." (35:30)
• Max out Roth IRA and increase your 401k contributions as your income rises.
  • Put at least 50% of raises toward wealth-building.
• If planning for early retirement, open a taxable brokerage account (bridge account).
• Consider real estate if interested, but buy wisely.
• Fight “lifestyle inflation”:
  • Use budgeting software and a 5-minute daily “drill” categorizing expenses.
  • "Lifestyle inflation...is the thief in the night that is going to come steal your wealth if you're not careful." (42:16)

In Your 40s

[43:45] - [48:12]

• Peak earning years = use it or lose it.
  • "If you underutilize this decade, this is where you're going to feel the pain if you do not get started now."
• Max out all retirement accounts:
  • 401k, Roth IRA, HSA if eligible, and brokerage accounts.
• Diversify tax buckets: Pre-tax, post-tax, and taxable for flexibility in withdrawals.
• Never prioritize children’s college over your retirement (no loans for retirement—take care of yourself first).
  • "Do not, and I repeat, do not do this. Your own retirement first, then your kid's college."
• Review asset allocation annually—consider shifting toward more bonds as you near your desired retirement age, based on risk tolerance.

In Your 50s

[48:13] - [54:16]

• Critical time to “dial in” your retirement plan.
• Maximize catch-up contributions:
  • Extra $1,000 in Roth IRA; extra $8,000 in 401k (for 2026).
• Develop your Social Security strategy:
  • Should you claim early or deferral for a bigger benefit?
    • "Every year you wait is a guaranteed 8% increase."
• Have a plan for healthcare costs pre-Medicare (Medicare starts at 65).
• Aim to enter retirement debt-free, especially mortgage and car payments.
  • Factor property taxes and insurance into ongoing expenses—even with a paid-off home.
• Quote:
  "When you're five years out from retirement, this is where it's game time—you got to know your retirement number." (52:34)

In Your 60s (Bonus Section)

[54:20] - [58:59]

• Watch out for "sequence of returns risk":
  • Consider a “guardrails” approach—adjust withdrawals in response to market conditions.
• Explore Roth conversions in low-income years to minimize required minimum distributions (RMDs) later.
  • Consult a CPA or advisor before making conversions.
• Social Security: Decide on the optimal claiming time for your specific situation.
• Plan for increasing healthcare needs, including long-term and elder care.
• Prepare for RMDs at 73 (current law).
  • "That is the big thing that I really want you to do: plan out your retirement with your goals and realize you can retire early. If you have a plan, it's a lot easier than it seems."

Memorable Quotes & Moments

• "Retirement is not an age. Retirement is a number." (15:34)
• "The behavior you build now will be worth its weight in gold in the future." (34:09)
• "Your 30s is the most dangerous decade of your life [financially]..." (35:32)
• "Fight lifestyle inflation. It is the thief in the night that is going to come steal your wealth." (42:16)
• "Do not, and I repeat, do not sacrifice retirement for college funding." (47:42)
• "When you're five years out from retirement, this is where it's game time—you got to know your retirement number." (52:34)
• "If you have a plan, it's a lot easier than it seems." (58:37)

Key Takeaways

• Track your retirement number every year, starting now.
  Your life, spending, and needs will change; your “number” will too.
• Automate and systematize your saving and investing.
• Max out available tax-advantaged accounts, then use taxable investing for flexibility.
• Don’t let lifestyle inflation erode progress, especially as income rises.
• Prioritize YOUR retirement over kids’ college accounts or other obligations.
• Plan for healthcare—costs rise with age and Medicare only starts at 65.
• In your 50s and 60s, focus on risk management, optimizing Social Security, and withdrawal strategies.
• It’s never too late to make progress, but the earlier you start, the more options and flexibility you’ll have.

Resources & Recommendations

• Monarch Money for tracking spending and net worth.
• SSA.gov for Social Security projections.
• Inflation calculators for realistic future expense estimates.
• Master Money Academy—Andrew’s recommended program for step-by-step personal finance and investing education, with weekly coaching.

Conclusion

This episode serves as a hands-on guide for listeners at any life stage to calculate their unique retirement number and build an adaptive, decade-by-decade action plan. Andrew’s advice is clear: retirement planning is a living process—take control, review yearly, and use the right tools, and you can enjoy financial freedom earlier than you ever imagined.