Your twenties are often the decade where you learn how to budget and get a start on your career. Your thirties, however, tend to be a little different in terms of finances. For many people, the thirties are a decade for prioritizing things like purchasing a home and saving for retirement. Your thirties are a great time for taking advantage of all of the retirement solutions and services that you have available to you since you are still young enough to see your savings multiply over the years. Here are three tips for retirement planning in your thirties.
Make Sure You Are Saving Enough
The first thing that you should do once you reach your thirties is to make sure that you are saving enough. While your twenties may have been a turbulent decade in terms of income, the chances are that your work life and salary is more stable now that you are more established. This is a good time to take a look at how much you are saving and whether or not it is enough for your retirement goals. Experts suggest saving between 10 and 15 percent of your pretax income for retirement. However, this number can differ depending on your income and debt levels.
Take Advantage Of All Of Your Resources
One of the biggest mistakes you can make when it comes to retirement planning is not taking advantage of all of the resources available to you. Around 57 percent of American workers have access to a 401(k) plan, but only 39 percent of those workers actively participate. If your employer offers a 401(k) or a different type of retirement plan, you should consider taking advantage of it. Saving outside of work is also something you should consider doing. You can also put money into a personal IRA or a Roth IRA.
Another tip for saving for retirement in your thirties is to seek help if you feel that you are not preparing or saving enough for the future. Plenty of professionals offer retirement planning services that can help you. Costs can vary from fees between 1 and 2 percent of your assets to hourly rates between $100 and $400. Hiring a professional can help you get ahead of the curve when it comes to your retirement plan.
Planning for retirement in your thirties is very important. What you save during this decade can have a major impact on your quality of life during your golden year. A few tips include reassessing your current savings and make sure that you are saving enough. It's also important to take advantage of all of the plans and services available to you. If you feel like you are not saving enough or not saving smartly, a professional retirement planner can help.
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