Are You on Track for Retirement? Here’s What to Do Next

Saving for retirement can feel overwhelming, but having clear financial goals can help you stay on track. Setting retirement savings benchmarks by age gives you a roadmap, ensuring that when the time comes, you'll have enough money to enjoy financial freedom.

But how much should you have saved—and what steps should you take to get there? Here's a breakdown of key retirement savings goals by age, along with smart strategies to help you build a strong financial future.¹

Retirement Savings Benchmarks by Age

In Your 20s: Get Started Early

When you're just starting out, retirement may be the last thing on your mind. But 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 to take advantage of compound interest and employer-sponsored plans.

📌 Key Steps:

• Start investing now—the earlier you save, the more time your money has to grow.
• Take advantage of employer-sponsored retirement plans, like a 401(k), especially if there's a match.
• Consider Opening an IRA (Traditional or Roth) to build additional retirement savings.
• Set up automatic contributions to make saving effortless.

In Your 30s: Build Momentum

Your 30s are a critical time to increase your savings and take retirement planning seriously. 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 set aside.

📌 Key Steps:

• Increase your retirement contributions as your salary grows.
• Avoid cashing out retirement accounts when changing jobs.
• Diversify investments to balance risk and growth.
• Reduce high-interest debt, like credit cards, to free up money for savings.

In Your 40s: Focus on Growth

As retirement gets closer, your savings should be building at a steady pace. By your mid-40s, you should have at least three to four times your salary saved, with a goal of reaching four to five times your income by age 50. Consider working with a financial advisor to create a more personalized strategy to reach your retirement goals.

📌 Key Steps:

• Max out retirement accounts (401(k), IRAs) whenever possible.
• Take advantage of catch-up contributions once you hit 50.
• Fine-tune your investment strategy to align with your retirement timeline.
• Plan for big expenses, like college tuition or paying off a mortgage, without sacrificing retirement savings.

In Your 50s and Beyond: Maximize Savings

With retirement on the horizon, now is the time to maximize savings and fine-tune your financial strategy. By 55, aim to have at least six times your salary saved, increasing to eight or nine times your income by 60, and ten times by retirement. If you haven't already created one, this is a great time to have a retirement plan in place.

📌 Key Steps:

• Max out IRA and 401(k) contributions to build savings while you're earning peak income.
• Consider delaying Social Security to increase your monthly benefits.
• Assess healthcare and long-term care needs to avoid unexpected costs in retirement.
• Adjust your investment risk level to protect your savings while still allowing for 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 savings target.

📌 Automate Contributions

Set up automatic contributions to a 401(k), IRA, or high-yield savings account to keep your savings consistent.

📌 Boost Your Savings Rate Over Time

Increase contributions as your income grows. A good rule of thumb is to save 15% of your salary for retirement.

📌 Review and Adjust Regularly

Check your progress at least once a year. Life changes, and so should your savings strategy.

📌 Work with a Financial Professional

Expert advice can help you adjust your plan, reduce tax burdens, and make smarter investment choices.

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).

At Coastal Credit Union, we offer Traditional and Roth IRAs designed to help you grow your money for the future²:

• A Traditional IRA lets you defer taxes now and pay them when you withdraw in retirement.
• A Roth IRA allows for tax-free withdrawals in retirement, giving you flexibility and tax advantages later.

📞 Ready to take the next step? Contact Coastal Credit Union today at 800-868-4262, or by visiting a branch to explore your IRA options and get expert guidance on your retirement savings strategy. Your future self will thank you!