Saving for retirement can feel overwhelming, but clear financial goals can help you stay on track. Setting retirement savings benchmarks by age gives you a roadmap so that when the time comes, you will have enough money to enjoy financial freedom.1
Retirement Savings Benchmarks by Age
In Your 20s: Get Started Early
The earlier you start saving, the more time your money has to grow. By your late 20s, aim to have at least half to a full year’s salary saved.
📌 Key Steps:
- Start investing now.
- Take advantage of employer-sponsored plans, like a 401(k), especially if there is a match.
- Consider opening an IRA (Traditional or Roth).
- Set up automatic contributions to make saving effortless.
In Your 30s: Build Momentum
By your mid-30s, aim to have at least your annual salary saved, and by 40, work toward having two to three times your yearly earnings.
📌 Key Steps:
- Increase contributions as your salary grows.
- Avoid cashing out retirement accounts when changing jobs.
- Diversify investments to balance risk and growth.
- Reduce high-interest debt to free up money for savings.
In Your 40s: Focus on Growth
By your mid-40s, aim for at least three to four times your salary saved, reaching four to five times by age 50. Consider working with a financial advisor for a personalized strategy.
📌 Key Steps:
- Max out retirement accounts (401(k), IRAs) when possible.
- Take advantage of catch-up contributions once you hit 50.
- Adjust your investment strategy to align with your timeline.
- Plan for major expenses without sacrificing retirement savings.
In Your 50s and Beyond: Maximize Savings
With retirement on the horizon, now is the time to strengthen your savings and fine-tune your financial strategy. By 55, aim for six times your salary saved, eight to nine times by 60, and 10 times by retirement.
📌 Key Steps:
- Max out IRA and 401(k) contributions while earning peak income.
- Consider delaying Social Security to increase monthly benefits.
- Assess healthcare and long-term care needs.
- Adjust investment risk levels to protect your savings while allowing for some growth.
Smart Strategies to Stay on Track
📌 Set Clear Retirement Goals
Define what retirement looks like for you. Will you downsize? Travel? Understanding your future lifestyle helps you set the right target.
📌 Automate Contributions
Set up automatic contributions to a 401(k), IRA, or high-yield savings account to keep savings consistent.
📌 Boost Your Savings Rate Over Time
Increase contributions as income grows. A good goal is to save 15% of your salary for retirement.
Final Thoughts: Boost Your Retirement Savings with Coastal IRAs
No matter where you are in your retirement journey, consistent saving and smart investing can help you reach your goals. One of the best ways to build retirement savings is by using an IRA (Individual Retirement Account).2
At Coastal Credit Union, we offer Traditional and Roth IRAs to help you grow your money for the future:
- A Traditional IRA lets you defer taxes now and pay them in retirement.
- A Roth IRA allows for tax-free withdrawals in retirement, providing flexibility and tax advantages later.
📞 Ready to take the next step? Contact Coastal Credit Union today at (800) 868-4262, or visit COASTAL24.com to explore your IRA options and get expert guidance. Your future self will thank you.
1. This information is for educational purposes only and does not constitute tax advice. Consult with a qualified financial advisor or tax professional before making any decisions related to IRAs or retirement planning.
2. Please consult a tax advisor for contribution eligibility.
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