Retirement Savings

Saving for retirement can feel overwhelming, especially when life’s more immediate financial needs take priority. But no matter how old you are, starting—or restarting—your retirement savings now can have a significant impact on your future financial security. In your 20s, time is your greatest ally.

Even small contributions to a retirement account can grow into substantial savings thanks to compound interest. If your employer offers a 401(k), contribute at least enough to get the full match, as it’s essentially free money. If a 401(k) isn’t available, open a Roth IRA, which allows your investments to grow tax-free and be withdrawn tax-free in retirement.

In your 30s, you may be dealing with new expenses like a mortgage or raising children, but it’s important to keep retirement savings a priority. By this point, aim to contribute around 15% of your income if possible. Increase contributions as your income rises and consider diversifying your investments to balance risk and growth. In your 40s, you may be in your peak earning years, but also juggling college savings and other obligations. Use this opportunity to catch up if you started late.

Max out contributions to your 401(k) or IRA if you can, and consider speaking to a financial advisor to reassess your goals, risk tolerance, and investment strategy. In your 50s, retirement becomes more tangible. Take advantage of catch-up contributions, which allow those 50 and older to contribute extra to their retirement accounts. Reevaluate your budget and look for areas to cut back so you can boost savings in your final high-earning years.

Consider reducing debt aggressively so your retirement income can stretch further. In your 60s and beyond, it’s time to start planning how to draw down your savings efficiently. Delay Social Security benefits if possible to increase your monthly payout.

Create a withdrawal strategy that minimizes taxes and ensures your money lasts. This may include a mix of traditional IRAs, Roth accounts, and taxable savings. Remember, retirement is not a one-size-fits-all journey. Life happens, and plans change. The key is to stay consistent, make informed adjustments over time, and not be discouraged by what you haven’t done—focus on what you can do today. Whether you’re just starting out or playing catch-up, taking action now is the best gift you can give to your future self.