It's never too early - or late - to consider your retirement. A few adjustments now, may significantly impact the outcome of your retirement plans. Here are some age-based tips when determining how much to save & plan for your future retirement...

20’s – 

• Time is on your side - Retirement may seem like a long way off. But that’s just the point; you have a long time before retirement. The sooner you begin to build your retirement savings the longer your money has to grow.

• Set your 401(k) or other employer retirement plan contribution to at least 5 - 10% of your gross income, beginning with your first job.

30’s - 

• Time is still your ally, so resist the temptation to cut back on saving for retirement. Make it a priority, even as you save for other goals, such as a house or your children’s college education.

• Track you spending; find ways to cut back on expenses to increase your savings.

• Invest your retirement savings for growth – at this young age you can withstand the ups and downs of the market so don’t be afraid to invest 100% in a diversified portfolio of stocks.

• Spend less than you earn and put the excess, including bonuses or raises into your savings; both retirement and those other goals.

• Put any bonuses or raises you get into your long-term savings, resisting the temptation to increase your lifestyle.

40’s – 

• Now is the time to max out your retirement savings – contribute the maximum-allowed to your 401(k) or other employer retirement plan.

• After you contribute the max to your 401(k), consider the benefits of contributing to a Health Savings Account (HSA), or traditional or Roth IRA.

• Spend less than you earn and put the excess, including bonuses or raises into your savings; for both retirement and your other goals.

50 and older - 

• Take advantage of “catch-up” contributions to your retirement accounts.

• If your employer offers a deferred compensation plan, now may be a good time to learn more. Be sure to structure your payouts in line with your goals and in a tax-efficient manner.

• Reevaluating your investment strategy – consider your current investment strategy. How much risk are you taking? When is the right time for you to decrease your exposure to stocks? While stocks often offer the greatest potential for growth, they may also have greater risks. Reducing the amount of stock in your investments may reduce the overall growth of your investments, but it may also reduce the impact of the next bear market.

• If you haven’t already, now is the time to get serious about retirement planning. Estimate your living expenses and health care costs, and consider the impacts of inflation and market uncertainty. You might find a few adjustments now can greatly impact your plan.

• Before you pull the plug, be sure you have enough to live confidently in retirement. Often, based on how you want to invest during retirement (i.e., your investment strategy) and your retirement goals.

• Retirement is typically a process and not just an event at a single point in time. Preparing for and transiting into retirement is a journey. Here are the main components we see - click here to see our one-page Retirement Journey.

Keep in mind, no matter what your age, your employer retirement savings plan can be a key component of your overall financial strategy. Don’t have an employer plan, consider funding an IRA, HSA, and/or other tax efficient vehicle.

Learn more about how we can help you confidently invest towards your retirement.