Retirement Planning by Age: Your Decade-by-Decade Guide

Retirement planning looks different at every age. Here's what to focus on during each decade of your working life.

In Your 20s: Build the Foundation

• Start contributing to your 401(k), especially if there's employer matching
• Open a Roth IRA for tax-free growth
• Aim to save 10-15% of your income
• Take advantage of time—even small amounts grow significantly

In Your 30s: Accelerate Growth

• Increase contributions as your income grows
• Diversify your investment portfolio
• Consider your risk tolerance
• Don't neglect retirement for other goals

In Your 40s: Maximize Contributions

• You're likely in your peak earning years
• Max out retirement account contributions
• Review and rebalance your portfolio
• Start thinking about your retirement lifestyle

In Your 50s: Final Push

• Take advantage of catch-up contributions ($7,500 extra for 401(k))
• Shift toward more conservative investments
• Calculate your retirement income needs
• Consider healthcare costs and Medicare

Key Numbers to Know

• 401(k) limit (2024): $23,000 ($30,500 if 50+)
• IRA limit (2024): $7,000 ($8,000 if 50+)
• Target savings by 30: 1x annual salary
• Target savings by 40: 3x annual salary
• Target savings by 50: 6x annual salary
• Target savings by 60: 8x annual salary