Retirement planning can feel overwhelming, especially when you don’t know where to begin. But whether you're just starting your career or already enjoying the view from your rocking chair, it’s never too early—or too late—to create a plan. This guide offers strategies for saving and investing by decade, from your 20s to your 70s and beyond.
In Your 20s: Start Small, Think Big
This is the ideal time to be aggressive with your investments—your savings have decades to grow. Thanks to the power of compound interest, even small contributions can lead to substantial growth over time. Take advantage of any employer match in a retirement plan, or consider opening an IRA if one isn’t offered.
In Your 30s: Stay the Course
If you haven’t started saving, now is the time. This decade often comes with major life changes—homeownership, kids, career shifts—but resist the urge to dip into your retirement savings. Withdrawals can lead to taxes, penalties, and lost compound growth. Stay focused and keep contributing.
In Your 40s: Increase Your Savings Rate
As your income grows, so might your expenses. Try increasing your retirement contribution by 1% each year. Use a retirement calculator to assess your progress. While college savings for kids may be on your mind, prioritize your retirement—you can borrow for education, but not for retirement.
In Your 50s & 60s: Get Strategic
Now is the time to fine-tune your plan. If you’re behind on savings, take advantage of catch-up contributions in your 401(k) or IRA. Build up emergency funds, reduce debt, and begin planning for health care needs. Medicare begins at 65, but if you retire earlier, plan accordingly. Delay Social Security if possible—you earn an 8% increase in benefits for each year you wait past age 62.
In Your 70s and Beyond: Protect and Preserve
If you’re still working, RMDs may not yet apply. Once retired, ensure you understand your required minimum distribution age, which depends on your birth year. This is the time to speak with an advisor about estate planning, charitable giving, and how to manage your legacy.
This material is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.
