Building Your Future: A Guide to Retirement Savings by Age


Written by: Vincenzo Testa, CPA, CFP®


Planning for your golden years is a task that should ideally begin early in your career. In this blog post, we'll explore how much you should have saved in your employer retirement plan by different age milestones. Keep in mind that these are general guidelines, and individual circumstances may vary.


In Your 20s: Lay the Foundation

In your 20s, retirement might seem like a distant concept, but it's the best time to start building a solid foundation for your future. Financial experts often recommend saving around 10-15% of your income. Take advantage of employer-sponsored retirement plans, such as 401(k)s or 403(b)s, and aim to contribute enough to get any employer match. By age 30, having a year's salary saved is a good benchmark.


In Your 30s: Accelerate the Pace

As you enter your 30s, financial responsibilities may grow with marriage, children, and homeownership. Aim to have saved the equivalent of your annual salary by the time you turn 35. This may involve increasing your contributions to your retirement accounts. Continue taking advantage of employer matches and consider diversifying your investments.


In Your 40s: Fine-Tune Your Strategy

By your 40s, you should ideally have three times your annual salary saved for retirement. Take a closer look at your investment strategy—consider a mix of stocks and bonds that align with your risk tolerance and long-term goals. Assess your overall financial health, including emergency savings and debt management.


In Your 50s: Catch-Up Contributions

As you approach retirement age, take advantage of catch-up contributions allowed by the IRS for individuals aged 50 and older. By age 50, you should aim to have saved around six times your annual salary. Reevaluate your retirement goals and make adjustments to your investment portfolio based on your timeline to retirement.


In Your 60s: Final Preparations

In your 60s, retirement is on the horizon, and your savings should reflect that. Aim to have eight to ten times your annual salary saved by the time you retire. Consider the transition from more aggressive to more conservative investments to protect your wealth. It's also a good time to explore Social Security and Medicare options.





Remember, these are general guidelines, and individual circumstances vary widely. Life events, market fluctuations, and unexpected expenses can influence your retirement savings journey. Regularly reassess your financial goals, consult with a financial advisor, and stay informed about changes in retirement planning regulations. Starting early, staying consistent, and making informed decisions are key to securing a comfortable retirement. If you have questions or would like to discuss your financial future, please reach out to the team at Bouchey Financial Group.


Bouchey Financial Group has offices in Saratoga Springs and Historic Downtown Troy, NY as well as Boston, MA and Jupiter, FL.


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