Believe it or not, retirement shouldn’t solely be on the mind of people who are in their 50s or 60s.
Whether you are young or old, saving up for retirement should be a priority, even if the components look different at different ages.
“It’s never too late to start planning for retirement” said Patrick Hart, certified financial planner with Concierge Capital Management. “The earlier you start, the better. But there are strategies you can use at most points in your life to prepare you for retirement.”
Here are some general retirement savings goals at different ages:
In your 20s:
- Aim to save at least 10% to 15% of your income for retirement.
- Build an emergency fund with at least three to six months of living expenses.
- Consider contributing to a workplace retirement plan or open an individual retirement account (IRA).
In your 30s:
- Aim to have one to two times your annual salary saved for retirement.
- Consider increasing your retirement contributions to at least 15% to 20% of your income.
- Re-evaluate your investment portfolio. Make any adjustments to align with your long-term goals.
In your 40s:
- Aim to have three to four times your annual salary saved for retirement.
- Take advantage of “catch-up” contributions to retirement accounts if you’re behind.
- Consider reviewing your retirement plan with a financial advisor to make sure you’re on track.
In your 50s:
- Aim to have five to six times your annual salary saved for retirement.
- Maximize your contributions to retirement accounts. Take advantage of catch-up contributions.
- Consider paying off any high-interest debt to reduce expenses in retirement.
In your 60s:
- Aim to have eight to 10 times your annual salary saved for retirement.
- Consider delaying retirement to allow more time to save and maximize Social Security benefits.
- Review your retirement plan with a financial advisor to ensure your savings and investments are sufficient to meet your goals.
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