Retirement planning isn’t a linear process. Your plan should be dynamic, evolving with you as you reach each life stage and as your financial circumstances change. Here’s a helpful guide to retirement planning by age. Use it to identify what you can focus on at different periods of your life.


Getting started in your 20s


Everything you save during these years will make it far easier for you to reach your retirement goals in the decades to come without having to save a large chunk of your income.


How much should you save? 

Aim for 10 per cent of your income.


Building momentum in your 30s


In your 30s, you may have a lot of other financial goals such as saving for your first home and putting money aside for your children. Stay on course with your retirement savings during this decade and you’ll see your nest egg really start to take off.


How much should you save? 

Set a goal to save between 15 and 20 per cent of your income. If you weren’t able to save in your 20s, consider setting aside windfalls such as tax returns or work bonuses to help build up your savings.


Gaining ground in your 40s


With kids and a mortgage, chances are your expenses are higher now than they were in other decades. Consider where you can cut back on lifestyle costs so you can continue to build a healthy savings.


How much should you save? 

If you haven’t already, this is a great time to talk to a financial advisor to help you decide how much you need to save. Then, backtrack based on what you have now to determine a tailored savings goal.


The last leg in your 50s and 60s


If you’ve been diligent, you’ll be ready for retirement by 65, or you may be able to retire early. Revisit your plan regularly to make sure it’s working for you.


How much should you save? 

Because you’re in your final working years, save as much as you can. Be realistic about how much you’ll need to live comfortably when determining what year you should retire.


What factors can impact how much you need to save?


Use this guide to retirement planning by age as a basic framework. What’s truly best for you will depend on a number of factors that will change over time. Your plan may change based on what you can afford to save, what your financial responsibilities are, and what your expectations are for life during retirement.


Ready to create a roadmap to a financially secure retirement?

We can help. Let’s chat.


© Bellwether Investment Management Inc. 2024. This communication is intended for residents of the provinces in which we are registered and is not meant to be a solicitation to any persons not resident in those provinces. Any opinions expressed in this article are just that, and are not guarantees of any future performance or returns. Some of the information contained in this article has been drawn from sources believed to be reliable but due to the fact that it is provided by a third party, it cannot be guaranteed to be accurate or complete. Bellwether Investment Management Inc., Bellwether Estate and Insurance Services Inc. and Bellwether Family Wealth cannot provide tax advice and therefore we recommend that you consult your tax advisor for further assistance with your tax planning and the preparation of your tax return. The report is prepared for general informational purposes only and the securities mentioned in this report should not be construed as a recommendation for any specific securities.

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