Are You On Track To Retire?

Before we dive into it, we wanted to take a second and share that Salary Transparent Street's birthday is tomorrow, April 16! 🎂

Three years ago, we headed to Washington, DC to ask strangers how much they make after finding out Hannah was underpaid. Since then, we’ve made it our mission to normalize pay transparency and help workers learn and earn more. Whether you’ve been with us since day one or just learned about our work, THANK YOU for being part of this community! Words can’t express how grateful we are for your support - we couldn’t have done this without you. 🫶

We’ll be going LIVE on Instagram tomorrow (4/16) from the Capital One Cafe to celebrate our birthday with all of you and answer more of your burning questions! Join us at 12 PM ET, and grab a free handcrafted beverage on us using this link.*

Hannah’s fave? Matcha lemonade. 💚 James’ fave? Vanilla latte. ☕ Cheers!

Now, let’s get into today’s topic: retirement. Can you actually live off your 401(k) and Social Security? Are you saving enough to relax in your golden years? Let’s find out. ⬇️

*This is a paid partnership with our sponsor, Capital One Cafe.

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We’ve all heard it: someone in their 60s saying they’ll never retire. 😩 

Someone else casually dropping that you need $2 million to coast through retirement. 🤯

And then there’s the Social Security discourse: will it even be around? 😰

It’s a lot.

So let’s break it down and share what you really need to know about retirement in America right now.

Are people saving enough? 💰

Unfortunately, no.

According to the Federal Reserve's most recent Survey of Consumer Finances, the median retirement savings for Americans aged 55-64 sits at $185,000. Meanwhile, experts recommend having six to eleven times your income saved for retirement by age 60.

It’s important to recognize the impact of inflation, rising cost of living, and stagnation of wages on our capacity to save. Nearly 60% of Americans are living paycheck to paycheck, with less than half of earners making over $100,000 a year. Between rent, student loans, and everyday expenses (hello, $7 lattes and $200 grocery runs), it’s no surprise that retirement savings often get pushed to the back burner.

Here’s a calculator to help you determine your ‘retirement number.’

What about Social Security? 🔐

Let’s rewind for a sec…

Social Security has been around since 1935, when President Franklin D. Roosevelt signed it into law during the Great Depression. The goal? To give retired workers a basic income to live on after years of paying into the system. It started as a safety net for older Americans, but it’s grown to cover disabled workers, surviving spouses, and more.

However, in today’s climate, the same guarantees may not be a sure thing.

Without legislative changes by Congress, Social Security trust funds are estimated to be depleted by 2033. This isn't to say Social Security is going away, but it might not provide what you're expecting long term.

Curious about where you stand? You can check your personal benefit estimate anytime at SSA.gov (and it’s completely free)!

Can you live off your 401(k)? 🪺

If you’ve got a 401(k), IRA, or other retirement account—great! But how much you’ll actually need depends on a few things…let’s put it into perspective:

• Desired lifestyle ✈️

• Where you live 🏠

• Health & medical costs ❤️‍🩹

• Family expectations 🍼

It’s also important to consider the impact of IRS limits, taxes, and inflation on your 401(k). Not to mention, if you take money out of your 401(k) account, you’ll likely have to pay a penalty and pay that money back with interest. It’s an excellent way to save, but we’d recommend putting your eggs in more baskets.

Don’t leave behind your 401(k), though! This is free money from your employer, and if you’ve changed jobs, they won’t transfer your account for you. Not sure where to start? We’ve got a full breakdown on how rollovers work, how to avoid taxes and penalties, and more - check it out here.

Your Retirement Readiness Checklist:

Curious about how you're doing on the track to financial freedom? Here are a few steps to keep you accountable and up to date:

✅ You know your “retirement number” (aka, how much you’ll actually need)
✅ You’ve checked your Social Security estimate on SSA.gov
✅ You’re working towards saving at least 15% of your income to retirement
✅ You’ve got a game plan to tackle your debt
✅ You’ve considered health insurance and long-term care costs
✅ You’ve thought of a plan B in case your plan A life goals don’t work out

Feeling a little stressed after that scan? Don’t worry. Think of it not as being behind - but rather being self-aware. And that’s the first step to getting on track with anything!

Retirement readiness isn't just about hitting a magic number—it's about creating a lifestyle that brings you joy while living within sustainable means.

So plan thoughtfully, get rid of that debt, and live out your own definition of “rich.”

Have you ever wanted to work for a social media channel? This wish came true for our content manager, Andrea (Drea)!

We sat down with Drea to learn about how she transitioned from finance to marketing, her prior roles in social media management, and what helped her 'shoot her shot' and come work with us!

Tune in to hear Drea’s key insights into the challenges and learning experiences of working in a startup versus a structured environment and what's next for her at STS.

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We’ll see you tomorrow on Instagram LIVE at 12 PM ET, and next week for more career-boosting insights and salary data! Stay transparent 💚