Essential Retirement Planning Steps for Every Age

Retirement planning can seem overwhelming, but breaking it down by age can make it more manageable. Here's how to approach retirement planning at different life stages:

In Your 20s: Building Foundation

• Start early with employer plans

  Take full advantage of employer-sponsored retirement plans, especially if they offer matching contributions. Even small contributions will grow significantly over time.

• Build an emergency fund

  Before aggressive investing, aim to have 3-6 months of expenses saved in an easily accessible account to avoid tapping retirement funds for emergencies.

• Pay off high-interest debt

  Prioritize paying off credit cards and high-interest loans that can undermine your saving ability.

In Your 30s: Gaining Momentum

• Increase retirement contributions

  As your income grows, aim to contribute 15% or more of your income to retirement accounts.

• Diversify your investments

  Balance your portfolio between stocks and less volatile investments based on your risk tolerance.

• Consider a Roth IRA

  Add tax diversity to your retirement savings with Roth contributions if your income qualifies.

• Balance homeownership and retirement

  If buying a home, make sure your mortgage doesn't compromise retirement savings. Use our mortgage calculator to find a balance between home costs and retirement contributions.

In Your 40s: Making Adjustments

• Max out retirement accounts

  Contribute the maximum allowed to your 401(k), IRA, and HSA if available.

• Reassess your retirement goals

  Calculate how much you'll need in retirement and adjust your savings rate accordingly.

• Consider catch-up contributions

  If you're behind on savings, look into additional investment vehicles beyond standard retirement accounts.

In Your 50s: Fine-Tuning

• Make catch-up contributions

  At age 50+, you can make additional "catch-up" contributions to 401(k)s and IRAs.

• Shift toward more conservative investments

  Begin gradually shifting your portfolio to protect your nest egg while maintaining some growth potential.

• Plan for healthcare costs

  Research Medicare options and consider long-term care insurance or a health savings account (HSA).

In Your 60s: Preparing for Transition

• Decide when to take Social Security

  Understand the implications of taking benefits early versus waiting for larger payments later.

• Create a retirement income strategy

  Develop a plan for which accounts to draw from first to minimize taxes and maximize benefits.

• Update estate planning documents

  Ensure your will, power of attorney, and healthcare directives are current.

Get Started Today

No matter your age, the best time to focus on retirement planning is now. Use our retirement calculator and mortgage calculator to make informed financial decisions that support your long-term goals.

Remember, the best retirement plan is one that you consistently follow and adjust as needed. It's never too early or too late to take steps toward a more secure retirement.