By Vincent Birardi, CFP®, AIF®, Senior Wealth Advisor
Key Takeaways
- Capture your full employer retirement plan match. If your employer offers a 401(k) or 403(b) match, contributing enough to receive the full match can add significantly to your retirement savings.
- Start contributing early and maximize available accounts. Consider contributing to employer-sponsored plans, Traditional or Roth IRAs, and other eligible retirement savings vehicles throughout your working years.
- Consider an HSA as part of retirement planning. For those with eligible high-deductible health plans, an HSA can help build savings for healthcare expenses in retirement.
- Increase contributions as your income grows. Annual increases can help your retirement savings keep pace with your earning potential.
- Avoid cashing out retirement accounts when changing jobs. Rolling funds into a new employer plan or personal IRA can help preserve your long-term retirement savings strategy.
How Much Should You Contribute to Retirement?
Knowing how much and how often to contribute towards your retirement savings can often feel like a daunting proposition. These are important decisions to weigh – and there are various opportunities to redirect your earmarked savings to other endeavors.
Unlike other life goals, you can’t borrow for retirement. But with the proper planning and commitment, retirement planning can be a winnable endeavor. With this in mind, here’s some high-level guidance on how to contribute to various retirement savings vehicles.
Halbert Hargrove’s High-Level Guidance on Retirement Contributions
As a general approach, Halbert Hargrove recommends:
- If available to you, secure your full employer’s defined contribution (401k/403b) plan match each year. This is essentially free money to you and adds to your savings.
- Don’t delay. Maximize your annual contributions to all retirement vehicles like 401k/403bs, Traditional and Roth IRAs now and during the decades before you actually retire. Capitalize on the increased annual contribution limits once you turn age 50.
- If you have a high-deductible healthcare plan for medical coverage, then you’re eligible to contribute to a Health Savings Account, and should do so each year. This is a meaningful method for saving to pay for out-of-pocket medical expenses in retirement. The latest projection published by Fidelity Investments in July 2026 identified that a 65-year-old individual retiring this year should expect to spend an average of $185,500 in healthcare expenses throughout their retirement years – a steep 7.5% increase from 2025.[1]
- Consider and implement annual increases every year to your retirement accounts. If you’re not already contributing the maximum amounts each year, consider doing so. As your income grows over the years, your retirement savings should keep pace.
Common Retirement Savings Mistakes to Avoid
Along the way, you will be best served to avoid these missteps:
- Cashing out before your retirement years. Avoid the temptation to liquidate an employer-sponsored plan account if you change jobs. Doing so not only triggers taxation and likely penalties but can derail your retirement savings plan. Instead look to directly roll these funds into a new employer’s retirement plan or to a personal IRA so you can continue to save and invest for the future.
- Not reviewing your retirement contributions annually. Avoid “set it and forget it” inertia. Contribute more as you can throughout the years.
Build Retirement Contributions Into Your Long-Term Financial Plan
At Halbert Hargrove, we believe strongly in long-term planning and thinking. Working with a CERTIFIED FINANCIAL PLANNER™ professional can help ensure that your retirement plan contribution decisions align with your broader financial plan, keeping you on track toward long‑term security and peace of mind.
We’d welcome a conversation with you to address any questions or concerns you may have about how best to fund your retirement accounts.
Halbert Hargrove Global Advisors, LLC (“HH”) is an SEC registered investment adviser with its principal place of business in Long Beach, California. HH may only transact business in those states in which it is registered, notice filed, or qualifies for an exemption or exclusion from registration or notice filing requirements. Registration does not imply a certain level of skill or training. For information pertaining to the registration status of HH, please contact HH or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov). Additional information about HH, including our registration status, fees, and services can be found at www.halberthargrove.com.
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[1] Fidelity Investments® Shares 25th Annual Retiree Health Care Cost Estimate, Highlighting the Importance of Incorporating Potential Health Expenses in Retirement Planning
