Core Insights - A significant concern for preretirees is the fear of outliving their savings, with 53% expressing this worry according to the Schroders 2025 US Retirement Survey [1] Financial Requirements - Experts suggest that individuals need approximately 80% of their pre-tax earnings to maintain their standard of living post-retirement, which for Darren translates to $4,667 monthly [2] - Darren believes he can retire comfortably with a combination of Social Security benefits and additional income, estimating he will receive nearly $1,700 monthly from Social Security and an extra $2,000 [2] Savings and Withdrawal Strategy - Using the 4% rule, Darren's $500,000 savings would yield about $1,667 monthly, which is insufficient for his needs, prompting the search for alternative income sources [3] Retirement Delay Options - Delaying retirement is a viable option, as nearly 25% of Americans choose to do so, which can help reduce the amount needed from savings and increase overall savings [4] - Contributing maximally to retirement plans, especially if employer matching is available, can significantly enhance retirement savings. In 2025, Darren can contribute up to $31,000 to his 401(k), or $77,500 including employer contributions [5] Social Security Benefits - Delaying retirement can also lead to increased Social Security benefits. If Darren postpones retirement until age 66, his monthly benefit would rise to approximately $1,850, and if he waits until 67, it would exceed $2,000 [6]

Group 1 - The ability to convert to a Roth IRA is not limited by age, and there is no earned income requirement for conversion [1][2] - The primary consideration for a Roth conversion should be whether it aligns with the goals for the legacy of wealth, especially as individuals approach required minimum distributions (RMDs) [2][3] - Financial advisors can assist in managing the tax implications of a Roth conversion strategy [3] Group 2 - If the intention is to leave wealth to a charity, converting to a Roth may not be beneficial, as taxes would not be due on the IRA balance when passed to a qualified charity [5] - Conversely, if the goal is to leave wealth to family members, converting the IRA to a Roth could ensure that beneficiaries receive tax-free assets, although it may not maximize tax savings [7][8]