Are You on Track to Retire? A Guide for Iowa Families

It's one of the most common questions people carry quietly for years before they ever say it out loud:

"Am I going to be okay?"

For many Iowa families, retirement feels like something that's always a few years away - until suddenly it isn't. And the truth is that most people don't have a clear picture of where they actually stand until they sit down and look.

This guide is meant to help you start that conversation with yourself. We're not going to tell you exactly how much money you need because that number is different for everyone. But, we can walk you through some of the most useful ways to think about retirement readiness, the gaps that tend to catch people off guard, and the questions worth asking before you're five years out from the date you'd like to stop working.

There Is No Single "Right" Number

You've probably heard the rule of thumb that you need $1 million to retire, or that you should save 10 times your annual salary by age 67. These guidelines can be useful starting points, but they're just that. Starting points.

The amount you actually need in retirement depends on factors that are deeply personal: how you want to live, where you plan to live, what your health looks like, whether you have a pension or other income sources, how long your family tends to live, and what you'd like to leave behind for the people you care about.

Someone who owns their home outright, plans to travel modestly, and has a part-time income they enjoy has a very different number than someone who retires with a mortgage, wants to travel extensively, and anticipates significant healthcare costs.

The most important thing isn't comparing yourself to a national average. It's understanding your own picture with enough clarity to make good decisions while you still have time to adjust.

Some Useful Benchmarks to Know

While every situation is different, there are some general benchmarks that financial professionals often use as reference points when thinking about retirement savings by age. These aren't rules — they're conversation starters:

• By your mid-30s: many guidelines suggest having roughly one to two times your annual salary saved.
• By your mid-40s: three to four times your annual salary is a commonly referenced milestone.
• By your mid-50s: six to seven times your salary starts to appear in many retirement planning frameworks.
• By your early 60s: eight to ten times your annual salary is often cited as a target range for retirement readiness.

If those numbers feel out of reach right now, you're not alone. It's not as binary as "on track" or "not on track." Retirement readiness is a moving target that changes based on your contributions, your returns, your timeline, and your expenses. What matters is understanding where you are so you can make informed decisions about where to go.

The Gaps That Catch People Off Guard

In working with families at various stages of their financial lives, a few common gaps tend to show up again and again. They're worth knowing about before they become surprises:

• Healthcare costs before Medicare. If you plan to retire before age 65 — when Medicare eligibility begins — you'll need to account for the cost of health coverage in the years between. This is one of the most commonly underestimated expenses in early retirement planning.
• Sequence of returns risk. This is the risk that a significant market downturn in the early years of your retirement, when you're beginning to draw down your savings, can have a disproportionately large impact on how long your money lasts. It's a concept that matters more as you get closer to your retirement date.
• Inflation over a long retirement. A retirement that lasts 25 or 30 years means your expenses in year 25 will look very different from your expenses in year one. Accounting for inflation, especially in areas like healthcare, is an important part of long-term planning.
• Social Security timing. When you claim Social Security benefits has a meaningful impact on your monthly benefit amount. Claiming early reduces your benefit; waiting increases it. Understanding how this decision fits into your overall income picture is worth careful thought.
• Specific tax considerations. Iowa, along with other states, have their own approach to taxing retirement income, including provisions for certain income exclusions for older taxpayers. The rules can change, and they interact with your overall income picture in ways that are worth understanding with the help of a qualified professional.

The Five Questions Worth Asking Right Now

Regardless of where you are in your retirement timeline, these five questions are worth sitting with, and ideally, working through with someone who can help you see the full picture:

• What does my monthly income in retirement actually need to cover? Have I written it down?
• What income sources will I have in retirement (ex. Social Security, pension, investments, part-time work) and have I estimated what each will provide?
• If I retired today, how long would my current savings last at my expected withdrawal rate?
• Am I taking full advantage of the tax-advantaged accounts available to me - 401(k), IRA, HSA - right now?
• Do I have a plan for healthcare costs before Medicare, and for long-term care if I need it?

You don't have to have all the answers. But knowing which questions to ask is where a clear financial plan begins.

What Iowa Families Have Working in Their Favor

Living in Iowa comes with some genuine advantages when it comes to retirement planning that are worth acknowledging.

Iowa consistently ranks among the more affordable states to live in, which means your retirement savings tend to go further here than in many other parts of the country. Housing costs, in particular, are significantly lower than national averages in much of the Des Moines metro and across the state.

Iowa, along with some other states, also provides certain income exclusions for retirement income for eligible taxpayers, which can reduce your state tax burden in retirement. The specifics depend on your age, income level, and the type of retirement income you receive — and these rules are worth understanding as part of your overall retirement income plan.

You Don't Have to Figure This Out Alone

One of the most valuable things a financial advisor can do is help you see your retirement picture clearly - not the national average picture, not your neighbor's picture, but yours. What you actually have. What you actually need. And what steps, if any, would make the most difference between now and the day you'd like to retire.

At Fawkes Financial Consulting, we work with families at every stage of their financial lives - including people who are 20 years from retirement and people who are 18 months out. Wherever you are, the right time to get clear is now.

We offer a free initial consultation - no pressure, no commitment. Just a conversation about where you are and what your options look like.

Bailey Fawkes is an Iowa-based financial advisor registered with LPL Financial, Member FINRA/SIPC. To schedule a conversation, visit fawkesfinancialconsulting.com.