Retirement savings — we all need them, yet they’re so easy to neglect.
These resources are crucial for a happy and healthy life after the workforce. They can help us offset debt, and achieve the relaxing retirement we all deserve.
But the average person’s relationship with retirement savings can be complex. In many cases, a person’s age can serve as a guideline on how far they should be in preparing for retirement.
Are Your Retirement Savings on Track?
Retirement prep is a process that should be continual, yet sadly, sometimes people still find themselves getting things in order after they’ve officially retired. Bankrate provides some tips based on what decade of life you’re in — and these provide a good framework to focus on.
When you’re in your 20s, it’s time to put a plan in place. This is when you will likely find your career path, and you can begin getting a rough idea of how much you can save, and how to grow your money. Once you reach your 30s, you can ramp up your plan and up the contributions you make.
In your 40s, you may want to consider easing into some spending cuts in the coming years to prepare for retirement. By this time, you will ideally have major expenses like student loans and house down payments behind you, so there’s more room to save for the future.
Your 50s are a good time to double down on tax-advantaged contributions. Once you reach your 60s, work as much as you can and consider delaying Social Security until 70 to maximize earnings.
In these decades just before retirement, you may do the bulk of your planning. There are risks and rewards to different approaches, so make sure you consult with your financial planner and create a plan that works for your retirement goals.
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