Retirement Saving Strategies
Traditional IRAFollow these helpful guidelines to get started saving for retirement.1
If you're starting to save in your 20s:
- Try to set aside 10%–15% of your income for retirement.
- Resist the temptation to cut back on retirement savings.
- Remember that even small contributions can grow substantially over time.
If you're starting to save in your 30s:
- Try to save 15%–25% of your income for retirement.
- Track your spending patterns to see where you might cut back.
- Put as much of your bonus as possible into your retirement savings.
- Continue to fund your retirement accounts—even while saving for your children's college expenses and paying down your mortgage.
If you're starting to save in your 40s:
- Try to save 25%–35% of your income for retirement.
- Max out your 401(k), SEP-IRA, or other business retirement plan.
- Contribute to a Traditional IRA or a Roth IRA, if eligible, and consider a deferred variable annuity.
- Look for ways to cut back on unnecessary expenses.
If you're starting to save in your mid-40s or later:
- Try to set aside at least 35% of your income for retirement.
- Max out all of your tax-deferred retirement account options.
- Contribute to a Traditional IRA or a Roth IRA, if eligible, and consider a deferred variable annuity.
- Consider postponing retirement for a few years, or working part-time to supplement your retirement income.