For all chapters of life
Tips
- Build and maintain an emergency fund to cover unexpected costs.
- Enroll in a retirement savings plan and review your contributions each year.
- Update beneficiaries on retirement and financial accounts annually.
Pitfalls
- Skipping retirement savings because it feels too early, too late, or not enough.
- Withdrawing funds early or taking loans from your retirement account without understanding the impact.
- Making impulsive changes in response to market fluctuations, which can disrupt your overall strategy.
Your twenties are a great time to build strong financial habits that can support your future goals. Starting early gives you more time to benefit from long-term growth.
Budgeting early – Creating a budget helps you manage spending and build a foundation for saving, including contributions to retirement.
Starting small is okay – Even modest retirement savings can grow significantly over time. The earlier you begin, the more compounding can work in your favor.
Build financial knowledge – Learning the basics of money management and investing can lead to better decisions. Educational tools and resources are available to help.
Explore Roth contributions – If your retirement plan includes a Roth option, it may be worth considering, especially if you're in a lower tax bracket now and expect to be in a higher one later.
Waiting too long to start saving – It’s easy to think you have plenty of time, but delaying retirement savings can make it harder to reach your goals later.
Avoiding saving because the amount feels too small – Even small contributions can grow over time.
Your thirties often bring career growth and increased financial responsibilities. This is a great time to build momentum in your retirement planning and refine your strategy.
Increase your retirement contributions – As your income grows, try to boost your savings. Even a small increase, like 1% or $25 per paycheck, can make a noticeable impact over time.
Open a health savings account (HSA) if eligible – An HSA allows you to save and invest for medical expenses now and in retirement.
Consider consolidating retirement accounts – If you've changed jobs, you may have retirement accounts from previous employers. Consolidating them into your current plan can make it easier to manage your savings.
Cutting back on retirement savings due to rising expenses – Reducing or stopping contributions can slow your progress toward retirement goals.
Not understanding your investment mix – Your asset allocation should reflect how much time you have until retirement, your comfort level with risk, and your financial objectives, which shift over time.
Your forties are a key time to evaluate your progress and make adjustments that keep you on track for retirement. As your lifestyle and expenses change, your savings strategy may need to evolve too.
Check your progress – Use the My Retirement Goals tool in your account to see if you're on track and make any needed adjustments.
Continue increasing your contributions – If your income or lifestyle has grown, you may need to save more to maintain your standard of living in retirement.
Review your investment mix – Make sure your asset allocation matches your risk tolerance and the time you have left until retirement. You may already be in a fund that adjusts automatically, like a target date fund. If not, consider speaking with us or a financial professional before making changes.
Underestimating how much you'll need – It's important to reassess your goals regularly.
Prioritizing college costs over retirement – Education matters, but it's important to balance both so you can stay on track with your long-term goals.
Your fifties are a critical time to fine-tune your retirement strategy. With retirement getting closer, it's important to take full advantage of available tools and make sure your plans are on track.
Use catch-up contributions – Once you reach your 50s, you're eligible to contribute extra to your retirement accounts. Adding more now can help close any gaps in your savings. Explore the current contribution limits.
Estimate your retirement budget – Start building a rough outline of what your expenses might look like in retirement. This can help you plan more accurately and adjust your savings if needed.
Prepare for health care costs – Medical expenses can be significant in retirement. Consider how you'll cover out-of-pocket costs and look into using a health savings account (HSA) if you're eligible.
Waiting to adjust your plan – Delaying updates to your retirement strategy limits your options.
Holding onto too much debt – Paying it down now can improve your financial outlook in retirement.
As retirement nears, focus on finalizing your strategy and making decisions that support long-term financial stability.
Stay in your retirement plan – Remaining in your plan after retirement may offer benefits like lower fees and continued access to professional guidance at no extra cost.
Decide when to claim Social Security – You can start receiving benefits as early as age 62, but claiming early reduces your monthly amount. Waiting until full retirement age (age 66 or 67, depending on your birth year) gives you 100% of your benefit, and you’ll receive an additional 8% for each year you wait up to age 70.
Create a withdrawal strategy – Consider working with a financial professional to plan how you’ll draw from your savings in a tax-efficient way. This can help your money last longer.
Skipping required minimum distribution (RMD) planning – Missing required withdrawals can lead to unexpected penalties.
Not having an estate plan – Without one, your assets and wishes may not be protected.
Plan for a lifetime of memories
No matter where you are on your retirement journey, connect with us or your financial professional for guidance. They can help you make informed decisions and take steps to help your money last.
For more tips on managing your finances, explore our