Retirement can feel like a far-off goal when you’re young, and even a little intimidating as you get closer to it. But the truth is, no matter your age, there are steps you can take today that will set you up for a more comfortable and secure future.
Whether you’re just starting your career, raising a family, or counting down the years until you leave the workforce, thoughtful planning makes all the difference.
At AMG Finance, we believe retirement planning should be simple, practical, and tailored to your stage of life. Here’s how you can prepare for retirement at every age.
In Your 20s: Build the Foundation
When you’re in your 20s, retirement might feel like it’s a lifetime away. But this is the stage where your biggest advantage is time. Thanks to compound interest, even small amounts invested now can grow into something significant later.
What to focus on:
Start saving early. Contribute to a 401(k) or IRA, even if it’s just a small percentage of your paycheck. Many employers also offer matching contributions, so make sure you take advantage of that free money.
Establish good habits. Setting up automatic transfers into a retirement account helps you save without thinking about it.
Pay down debt. Reducing student loans or credit card balances frees up more of your future income for saving and investing.
Think of your 20s as laying the groundwork. It’s less about saving huge sums and more about building consistent habits that will pay off later.
In Your 30s: Balance and Growth
By the time you reach your 30s, life is often busier. You may be buying a home, raising children, or advancing in your career. Retirement is still decades away, but this is the decade when your savings should begin to grow steadily.
What to focus on:
Increase contributions. As your income grows, try to raise the percentage you contribute to your retirement plan. A good goal is 10–15% of your earnings.
Protect your family. Consider life insurance, disability insurance, and an emergency savings fund. These safeguards protect your loved ones and your financial plan.
Refine your budget. With more expenses at this stage, creating a clear budget helps ensure you’re living within your means while still saving for retirement.
In your 30s, you’re balancing responsibilities, but consistent contributions, even modest ones, help your nest egg grow steadily in the background.
In Your 40s: Catch-Up and Prioritize
The 40s are often a turning point. Retirement may feel closer, and you may also be facing larger financial commitments like college tuition for your children.
What to focus on:
Maximize contributions. This is the time to put as much as you can into retirement accounts. If you haven’t been able to save much yet, don’t panic. Catch-up strategies exist.
Diversify investments. Make sure your retirement portfolio isn’t too heavily weighted in one area. A mix of stocks, bonds, and other options spreads out risk.
Avoid lifestyle creep. As income rises, it’s tempting to spend more. Prioritize increasing savings over upgrading cars or homes.
This decade is about taking retirement seriously. You still have time, but the choices you make in your 40s carry extra weight.
In Your 50s: Fine-Tune the Plan
As you enter your 50s, retirement starts to feel real. This is the time to sharpen your focus and make adjustments to ensure you’re on track.
What to focus on:
Take advantage of catch-up contributions. Once you turn 50, you’re allowed to contribute extra to retirement accounts each year. Use this option if you can.
Estimate retirement needs. Look closely at your future expenses, including healthcare, housing, and lifestyle choices.
Pay off major debts. Aim to pay down or eliminate mortgages, car loans, and other large debts before retirement.
Your 50s are about making retirement tangible—turning vague goals into specific numbers and adjusting your plan to match.
In Your 60s: Transition and Protect
If your 20s were about starting and your 40s were about catching up, your 60s are about preparing to step into retirement with confidence.
What to focus on:
Decide when to retire. Consider whether you want to retire fully, phase out gradually, or continue part-time work.
Plan for Social Security. Understand when it makes the most sense for you to begin collecting benefits. The longer you wait (up to age 70), the larger your monthly benefit.
Protect your savings. As retirement approaches, shift some of your investments into safer, less volatile options. This reduces the risk of market losses right before you need the money.
Consider healthcare. Medicare begins at age 65, but you may need supplemental insurance or a health savings account (HSA) to cover additional costs.
The focus in your 60s is making sure the nest egg you’ve built is safe and ready to support you.
Retirement Planning Tips at Any Age
While the steps differ depending on your stage of life, some principles apply no matter when you start:
Make saving automatic. It’s easier to stay on track when money is transferred into savings or investments before you can spend it.
Check in regularly. Review your retirement accounts at least once a year to make sure you’re still on pace.
Ask for guidance. Financial professionals can help you navigate changes in income, tax laws, and investment strategies.
Don’t get discouraged. Even if you start later, consistent saving and smart planning can still make a meaningful difference.
Get Expert Guidance for Your Retirement Plan
Preparing for retirement is not about doing everything perfectly from day one—it’s about making steady progress, no matter your age. Every step you take, from setting up that first automatic transfer to fine-tuning your investment mix, brings you closer to the retirement you want.
At AMG Finance, our team of financial advisors is here to help you plan, save, and make confident decisions about your future. Whether you’re just starting your career or you’re ready to map out your retirement years, we’re here to walk alongside you.
Ready to talk about your retirement plan? Contact AMG Finance today to schedule a consultation with one of our specialists.
