No matter what stage you are at in life, it’s never too early—or too late—to take retirement seriously. Whether you’re just starting out in your career or approaching your final working years, there’s one universal truth: retirement doesn’t plan itself.
At Hayes & Associates, we assist clients in navigating retirement planning at every stage of life. While your exact strategy will depend on your goals, income, and timeline, the best place to begin is with a clear understanding of what to prioritize each decade.
Below is a decade-by-decade guide to help you create a solid foundation for your future, no matter where you start.
In Your 30s: Build Momentum and Focus on Habits
Your 30s are the decade of financial building blocks. Many people in this age range are juggling career growth, home ownership, or starting families. Retirement may feel distant, but this is the decade when time is on your side. The habits you form now will pay dividends later.
Key Priorities:
- Start contributing to your 401(k) or IRA if you haven’t already. Even small contributions add up with compound interest.
- Take full advantage of employer matches—that’s free money.
- Aim to save at least 15% of your income, including employer contributions. If that’s not realistic yet, start with what you can and increase contributions each year.
- Avoid lifestyle inflation as your income grows. Instead, direct raises or bonuses into retirement savings.
- Pay down high-interest debt that competes with your savings power.
- Create an emergency fund so you’re not forced to withdraw from retirement savings when unexpected expenses arise.
Why it matters:
Someone who starts saving $500/month at age 30 could accumulate nearly $600,000 by age 65—assuming a 7% return. Starting now maximizes the compounding effect.
In Your 40s: Catch Up and Get Strategic
Your 40s are often referred to as the “sandwich decade.” You may be supporting both children and aging parents while managing a busy career. This is also a critical time to get strategic about retirement.
Key Priorities:
- Reassess your retirement goals. Do you want to travel? Downsize? Retire early? Your savings strategy should reflect your lifestyle goals.
- Maximize your contributions. For 2025, the 401(k) limit is $23,500, and you can contribute up to $7,000 to an IRA if eligible.
- Open or revisit a Roth IRA or consider backdoor Roth strategies.
- Start estimating your Social Security benefits and potential retirement income sources.
- Adjust your investment strategy if needed. Make sure your portfolio aligns with your risk tolerance and time horizon.
- Work with a financial advisor to run retirement projections and adjust for life changes such as divorce, career shifts, or inheritance.
Why it matters:
If you get a late start, your 40s are the time to make up ground. Increasing contributions and reviewing your asset allocation can significantly improve your retirement outlook.
In Your 50s: Maximize and Protect
This is the home stretch. Retirement is no longer a distant concept. It’s something you’ll need to prepare for with intention. Your decisions in this decade will shape the next 20–30 years of your life.
Key Priorities:
- Take advantage of catch-up contributions. In 2025, those over 50 can contribute an additional $7,500 to a 401(k) and $1,000 more to an IRA.
- Reduce debt. Pay off credit cards, auto loans, or even your mortgage to reduce your monthly expenses in retirement.
- Consider long-term care insurance or evaluate how you’ll cover future healthcare costs.
- Refine your retirement budget. Estimate your future monthly needs and compare that to your projected income.
- Meet with a CPA or financial planner to review your tax strategy, drawdown plan, and estate planning documents.
- Avoid risky investment behavior. Now is not the time for speculative investments. Focus on preservation and sustainability.
Why it matters:
You still have time to grow your nest egg, but it’s also time to shift from accumulation to protection and income planning. Every decision now needs to be aligned with your specific retirement plan and lifestyle.
No Matter Your Age, It’s Never Too Late to Plan
At Hayes & Associates, we’ve worked with clients who started in their 20s, and others who began seriously saving in their 50s. The truth is: there is no perfect starting point. However, there is always a next best step.Could you use help creating a personalized retirement strategy? Call Hayes & Associates at (402) 390-2480 or visit hayes.cpa to schedule a consultation.
