Retirement Planning Checklist for DFW Families (2026 Edition)

Most people in the Dallas–Fort Worth area feel behind on retirement planning. If that's you, you're not alone — and you're not as far behind as you think.

A recent survey found that nearly half of Americans aged 45–64 have less than $100,000 saved for retirement. But here's the encouraging truth: the families who close that gap aren't necessarily the ones earning the most. They're the ones who followed a clear, step-by-step plan.

This retirement planning checklist is built specifically for families in Allen, Plano, Frisco, McKinney, and the greater Dallas–Fort Worth area — accounting for Texas's unique tax advantages, cost-of-living realities, and the financial decisions that matter most in 2026. Work through each step, and you'll have a concrete picture of where you stand and what to do next.

Step 1: Know Your Retirement Number

Before anything else, you need a target. Most financial planners use the 25x Rule as a starting point: multiply your desired annual retirement income by 25 to estimate how much you'll need saved.

For example, if you want $80,000/year in retirement income, your target savings goal is approximately $2 million.

This isn't a perfect formula, but it gives you a real number to work toward instead of a vague sense of "saving more." Once you have your number, you can map your current savings trajectory against it and identify any gap that needs to close.

Not sure how to calculate this? Try our free retirement savings calculator to project your balance, or read How Much Do You Need to Retire Comfortably in Texas? for a real-numbers breakdown.

Step 2: Set (or Update) Your Retirement Timeline

Do you want to retire at 60? 65? 70? Your timeline affects everything — how aggressively you need to save, how long your money needs to last, and when to claim Social Security benefits. If you're weighing a specific date, our guide on when you can afford to retire in Texas breaks down the readiness signals and the pre-Medicare healthcare gap.

One thing many DFW families overlook: Texas has no state income tax, which means your retirement income — whether from a pension, IRA withdrawals, or Social Security — is not subject to state-level taxation. This is a genuine advantage over retirees in states like California or New York and can meaningfully stretch your retirement dollars.

Step 3: Maximize Tax-Advantaged Accounts

In 2026, the IRS contribution limits for retirement accounts have increased. Here's what you should know:

• 401(k): Up to $24,500/year; $32,500 if you're 50+ (catch-up contributions), and up to $35,750 for ages 60–63
• Traditional or Roth IRA: Up to $7,500/year, plus a catch-up contribution if you're 50 or older
• SEP-IRA (for small business owners): Up to 25% of compensation or ~$69,000

If you're not maxing these accounts — especially if your employer offers a 401(k) match — you're leaving free money on the table. Closing that gap is often the single highest-impact move a family in their 40s or 50s can make.

As a licensed financial planner, I work with families across the DFW area to identify underutilized contribution room and build a realistic savings plan — one that's focused on creating wealth for generations, not just getting through retirement.

See how we help DFW families maximize retirement accounts →

Step 4: Review Your Investment Allocation

Your investment mix — the balance between stocks, bonds, and other assets — should shift as you get closer to retirement. A 35-year-old can afford to ride out market volatility. A 58-year-old with a 7-year horizon cannot afford the same level of risk.

A common starting point is the "110 minus your age" rule: subtract your age from 110 to get the percentage of your portfolio that may be appropriate to hold in equities. At 50, that's roughly 60% stocks, 40% bonds and alternatives. But your actual allocation should reflect your income needs, other assets, and risk tolerance — not a formula alone.

Step 5: Build (or Update) Your Income Plan for Retirement

Accumulating savings is only half the equation. The other half is building a plan for how you'll actually draw income in retirement without running out of money.

Key income sources to plan for:

• Social Security — When to claim (age 62 vs. 67 vs. 70) can mean a difference of hundreds of dollars per month
• Pension income — If applicable, understand the payout options (lump sum vs. monthly annuity)
• Required Minimum Distributions (RMDs) — At age 73, the IRS requires withdrawals from traditional retirement accounts; failing to take them triggers steep penalties
• Investment withdrawals — A sustainable withdrawal rate (often cited as 4%) determines how long your money can last

Step 6: Plan for Healthcare Costs

Healthcare is one of the largest — and most underestimated — expenses in retirement. According to Fidelity's annual estimate, a couple retiring at 65 may need approximately $315,000 to cover healthcare costs through retirement. That number doesn't include long-term care.

In Texas, Medicare coverage begins at 65 regardless of when you retire. But if you plan to retire before 65, you'll need a bridge strategy: COBRA coverage, a spouse's employer plan, or marketplace coverage through the ACA.

Long-term care is the other conversation most families avoid until it's too late. In the DFW area, assisted living costs average $4,000–$6,000 per month. A standalone long-term care policy or a life insurance policy with a long-term care rider can protect both your savings and your family.

Step 7: Get Your Estate Documents in Order

Retirement planning isn't just about accumulation — it's about protecting what you've built. Every DFW family should have these foundational documents in place, regardless of age:

• Will — Specifies how assets are distributed and, if you have minor children, names a guardian
• Durable Power of Attorney — Designates someone to manage finances if you become incapacitated
• Healthcare Directive / Living Will — Specifies your medical wishes if you can't communicate them
• Beneficiary designations — Retirement accounts and life insurance pass outside of a will; beneficiary forms control who receives these assets

Texas probate law has specific nuances, and while the federal estate tax exemption rose to $15 million per person for 2026 (so most families owe no estate tax), estate planning still matters for avoiding probate, naming guardians, and controlling who inherits. Not sure whether you need a will, a trust, or both? Our guide to wills vs. trusts in Texas breaks down exactly which one fits your family.

For the creation of legal documents such as wills, trusts, or powers of attorney, please consult a licensed estate attorney in Texas. A financial planner coordinates the overall strategy; an estate attorney handles the legal execution.

Step 8: Get a Professional Second Opinion

A retirement planning checklist is a powerful starting point. But the families in the DFW area who retire with confidence typically share one common thread: they didn't navigate it alone.

Working with a licensed financial planner gives you a customized roadmap — one that accounts for your specific tax situation, income sources, family structure, and goals. It's the difference between a generic template and a plan that's actually built for your life.

At Empyre Finance, my goal is simple: helping families achieve financial security through technology-driven, comprehensive financial planning backed by a proven platform. Whether you're 10 years from retirement or just starting to think about it, there's no better time to put a real plan in place than today.

The best time to start was 10 years ago. The second-best time is today.