Planning for Retirement: Steps to Consider in Your 20s, 30s, 40s and Beyond
When you’re in your 20s or 30s, retirement seems like it’s a lifetime away. It’s something your parents talk about…not you. Life moves fast and retirement has a way of sneaking up on you. The earlier you start planning, the more peace of mind and freedom you’ll enjoy later. A few smart, well-timed decisions now can make a big difference later.
You’re not alone if you haven’t given retirement much thought. A study found that 56% of Americans are not financially ready for it.1 You can write a different story for yourself. Whether you’re just starting your career or are well into it, there are practical, manageable and doable ways to build a secure future for yourself and your loved ones.
We’ll break it down by decade, and highlight some tips and tricks for you to consider, so you can take the right steps at the right time and feel confident as you get closer to retirement age.
In your 20s: Build the foundation
By starting early – even with small amounts – your money can grow through the power of compounding interest.
- Enroll in your employer’s retirement plan: Many companies offer 401(k)s with matching contributions. That’s free money you don’t want to leave behind.
- Open a Roth IRA: This lets you contribute after-tax dollars today in exchange for tax-free withdrawals in retirement.
- Build an emergency fund: Save 3 to 6 months of expenses to avoid dipping into retirement funds when unexpected costs come up.
- Avoid lifestyle inflation: As your income grows, so should your savings rate – not just your spending.
Tip! Start saving $200/month beginning at age 25. It can grow to more than $300,000 by age 65 (assuming a 7% return2).
In your 30s: Stay consistent, plan ahead
You’re likely juggling more things at this stage of life (including a mortgage, family and career changes). Now’s the time to define and stay committed to your long-term vision.
- Start thinking about your retirement lifestyle: Want to travel? Volunteer? Work part-time? Early planning helps make these things possible.
- Increase your retirement savings: Aim to contribute 10 to 15% of your income toward retirement.
- Consolidate old retirement accounts: Roll over previous 401(k)s into a single account to simplify and manage your investments more effectively.
- Refine your investment strategy: Make sure your portfolio aligns with your goals, timeline and risk tolerance.
Tip! Read up on how compound interest, inflation and taxes will affect your retirement income.
In your 40s: Maximize and protect
These are your peak earning years and prime window to make meaningful progress, grow your money and protect what you’ve built.
- Catch up on savings if needed: Make up ground by increasing contributions and cutting unnecessary expenses.
- Review your retirement goals: Use our retirement calculators or meet with an advisor to see if you’re on track.
- Prioritize debt reduction: Reduce high-interest debt to free up cash to put into investment or savings accounts.
- Protect your family: Make sure you have adequate life insurance, disability coverage and up-to-date estate planning documents.
- Teach your kids about financial literacy: If you have kids, make sure you’re talking about the importance of money, savings and planning early!
Tip! Don’t pull back on investing as you approach age 50, you may still have 20-30 years to grow your wealth.
In your 50s and beyond: Prepare to transition
Retirement is no longer a dream – it’s just over the horizon. Focus on the last few steps you can take to pad up your nest egg.
- Take advantage of catch-up contributions: Once you turn 50, you can contribute more to 401(k)s and IRAs and boost your savings.
- Model retirement scenarios: Estimate your expenses (including healthcare costs and inflation), potential income and withdrawal strategy.
- Review Medicare and long-term care plans: Health expenses can be one of the biggest costs in retirement; planning early can make a big difference.
- Understand your Social Security options: The longer you wait (up to age 70), the more you receive monthly.
- Finalize your estate plan: Review wills, powers of attorney, beneficiary designations and consider trusts if needed.
- Talk with your family: Have honest conversations about your wishes, legacy plans and any support you may need later in life.
Tip! Retirement is a transition, so prepare emotionally and mentally for your new chapter with purpose and flexibility.
Let’s connect
No matter where you are in your retirement preparation, our wealth management team can help. We have experience you can trust and will create a plan that’s unique to you. To start the conversation, fill out this form and one of our local wealth advisors will contact you.
1Higham, Aliss; Half of Americans Have No Retirement Plan: Study; Newsweek; Updated Oct. 31, 2024
2Morningstar’s 2025 “Mind the Gap” study found that the average dollar invested in U.S. mutual funds and ETFs earned 7.0% annually over the decade ending December 31, 20242. This figure accounts for investor behavior (buying and selling) and is slightly lower than the 8.2% aggregate annual total return of the funds themselves, which assumes a lump-sum investment held throughout the period. (The More Investors Traded, the Less Their Average Dollar Made | Morningstar)
This information is prepared for informational and educational purposes. Always consult a qualified tax advisor for personalized guidance. Investments and other non-deposit products are not deposits, not FDIC insured, not guaranteed by the bank, and may lose value.
