Saving More Won't Solve This Retirement Problem — Top Wealth Manager Says Most People Miss A Critical Step

For decades, retirement planning has centred on a simple idea: save as much money as possible and hope it lasts. Yet as millions of Americans grow less confident about their financial future, one wealth management executive believes many people are overlooking a far more important step.

Michael Cherny, Head of Citizens Wealth Management, says retirement planning should begin with a question many people never fully answer. What do you actually want retirement to look like? His comments come at a time when retirement confidence is slipping across the US. According to the 2026 Retirement Confidence Survey from the Employee Benefit Research Institute, the share of workers who believe they will have enough money to live comfortably in retirement fell to 61%, down six percentage points from 2025.

The findings suggest that many Americans remain uncertain about their long-term financial security despite years of saving and investing.

The Retirement Question Many People Ignore

When people think about retirement, they often focus on reaching a target savings figure. Cherny believes that approach can be limiting. 'Defining what retirement will look like. Many people focus on reaching a specific savings number, but retirement planning is highly personal,' he said.

According to Cherny, retirement planning should start with understanding personal goals. Those goals may include travelling, spending more time with family, volunteering, pursuing hobbies or continuing to work in a different role. The clearer those objectives become, the easier it is to build a financial strategy that supports them. Without a defined vision, determining how much money is actually needed can become difficult.

Retirement Planning Is Not a One-Time Event

Another mistake Cherny sees is treating retirement planning as something that can be completed once and then forgotten. Life circumstances rarely stay the same. Health needs evolve. Family responsibilities change. Economic conditions shift. Inflation affects spending power. Market conditions fluctuate.

Cherny says retirement plans should be reviewed regularly to reflect those changes. 'Make retirement planning an ongoing process, not a one-time event,' he said. A strategy created years earlier may no longer reflect current priorities or financial realities. Regular reviews can help people adjust their plans before small challenges become larger financial problems.

The Costs Many People Fail to Anticipate

One of the biggest retirement mistakes, according to Cherny, is underestimating future expenses. Many workers focus on replacing their employment income after retirement. However, several major costs are often overlooked. Healthcare expenses can rise significantly with age. Long-term care may become necessary later in life. Housing costs can continue for years. Inflation can steadily erode purchasing power.

Taxes can also affect retirement income more than some people expect. 'A retirement plan should address both the obvious expenses and the often-overlooked costs that can affect financial security over the long term,' Cherny said. Failing to account for those expenses can create financial pressure years after retirement begins.

The Risk of Living Longer

Of all the challenges facing retirees, longevity risk concerns Cherny the most. Longevity risk refers to the possibility of outliving retirement savings. People are living longer than previous generations, meaning retirement funds may need to support spending for several decades.

'Many retirees will live well into their 80s and beyond,' Cherny said. The longer retirement lasts, the greater the impact of inflation, healthcare costs, and market volatility. For that reason, Cherny believes retirement plans should be flexible enough to adapt as circumstances change.

Why Traditional Rules May Need Updating

Cherny also believes some retirement rules deserve closer examination. One example is the widely used 4% withdrawal rule, which has long served as a basic guide for retirement income planning. This rule suggests that retirees can withdraw about 4% of their total savings in the first year of retirement, and then adjust that amount each year for inflation, with the goal of making their money last for around 25–30 years.

While Cherny says this rule remains a useful starting point, he cautions against applying it universally. Life expectancy, taxes, spending habits, and market conditions vary widely from person to person. As a result, withdrawal strategies should be tailored to individual circumstances rather than relying entirely on a single fixed formula.

What a Good Retirement Looks Like in 2026

According to Cherny, a successful retirement is not defined by a specific account balance. Instead, it is about having the confidence and flexibility to live the life you want. For some people, that may mean travelling. For others, it may involve spending more time with family, volunteering, pursuing interests or working on their own terms. 'A good retirement in 2026 isn't defined by a specific account balance. It's having the financial confidence to live the life you want to live,' Cherny said.

His message is straightforward. Retirement planning is not only about building a larger nest egg. It is about creating a plan that supports the future you hope to enjoy. For many people, that process starts not with a calculator, but with a clear vision of what comes next.