Retirement Strategies by Age: 20s, 30s and 40s
For many workers, retirement is the end-goal after a successful career.
While many aim to achieve this goal, the age of reaching retirement continues to rise. In fact, some polls* have shown that 23% of workers don’t expect to stop working, while another quarter say they will continue working after 65.
However, a large part of that expectation is linked to a lack of planning for retirement. We believe that it’s never too late – or too early – to begin planning, provided you receive good retirement advice.
Retirement investment strategies by age
Retiring requires putting together a strategy, and that strategy must change as you age. While workers in their 20s can budget and begin saving, those in their 40s should think about diversifying and considering larger expenses like college funds.
Here are some helpful retirement planning tips, with age-specific actionable items for those in their 20s, 30s and 40s:
| Saving for Retirement at 20 | Saving for Retirement at 30 | Saving for Retirement at 40 | |
|---|---|---|---|
| Key strategies |
Savings: Start saving regularly and start an emergency fund. Investing: Invest in at least one retirement account, such as a 401(k) or an IRA. Retirement: Set aside 15% of your income in retirement funds and take advantage of your company's full employer match, if available. |
Savings: Build an emergency fund of three to six months' worth of expenses. Investing: Increase retirement contributions. Retirement:
|
Savings: Maintain an emergency fund and save for other expenses as needed. Investing: Diversify, keep fees low, reduce debt. Retirement:
|
| At this age, look into: |
Budgeting: Setting a budget is a crucial first step for any investing goal, whether that's to buy your first house or retire at 40. Emergency funds: Save for at least three to six months' worth of expenses in case of an emergency. |
IRAs: A traditional individual retirement account lets you set aside pre-tax money and lets it grow tax free. Life insurance: At this point, life insurance is a strong estate planning and asset protection move. Will and financial power of attorney: You should think about creating a safety net in case something unforeseen happens. |
Your savings program: Keep putting money away and refrain from dipping into your retirement fund to pay for things such as college. College fund: If you have children and intend to pay for college, now is the time to start a college fund. Long-term care insurance: Buying it before age 50 and while you are in good health is a wise move. |
| The bottom line | Start investing now. | Increase your retirement contributions now. | Pick a retirement date, and start planning for it. |
Contact Cadence Bank today
You and your business are important to us at Cadence Bank. We take your financial success seriously, which is why we have tools to help you achieve your goals, including retirement.
Find out more about Cadence Bank’s retirement services and get in touch with us today.
By: Cadence Bank on Feb 12, 2025
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