Which changes contributed to an increase in Retirement Probability of Success in the Rodriguez Recommended Plan?

• A. Retiring later, reducing living expenses, claiming Social Security later, and increasing contributions
• B. Retiring earlier
• C. Increasing contributions to 401(k) only
• D. No changes were made

Answer: (C)

The main idea is that increasing savings directly boosts the size of the retirement nest egg, which raises the chance that withdrawals will be sustainable through retirement. When you contribute more to a 401(k), you’re growing assets in a tax-advantaged, compounding vehicle. Over time, even modest increases in contributions can lead to a much larger balance at retirement, which improves the probability that the portfolio can cover spending needs without running out of money.

In the Rodriguez Recommended Plan context, this change is the most effective single lever because it expands the asset base without altering when you retire or how you claim benefits. Delaying retirement or delaying Social Security can help, but they involve trade-offs you might not be able to implement or measure as reliably in this plan. Retiring earlier generally lowers the odds, since you face more years of withdrawals with a smaller nest egg. Doing nothing yields no improvement. Therefore, increasing contributions to the 401(k) builds the foundation for a higher probability of retirement success.