Retirement planning by age: Saving strategies throughout your career

Saving for retirement is a lifelong journey, and every stage of your career can offer new opportunities to strengthen your financial future. Understanding key retirement savings milestones can help you make more informed decisions and allow you to adjust your strategy as your goals evolve. As Tyler De Haan, Director of Advanced Sales, explains, "Wealth creation is simple, but it requires discipline. The secret is to save early, often, and over a long period of time." While planning for retirement can look different for everyone, there are steps you can take at any age to help build your savings and reach the finish line with confidence.

When to start planning for retirement

The best time to start planning for retirement is as soon as possible. Beginning early helps give your retirement savings more time to benefit from compound growth, meaning you can earn interest on top of interest, and can build wealth over a longer period of time. But even if you haven't started yet, don't let that discourage you, the next best time to start building a retirement plan is today!

Why plan for retirement early?

Planning for retirement as early as possible helps give your savings decades to grow and can give compounding interest an opportunity to turn consistent contributions into meaningful long-term growth. Starting sooner can also make it easier to reach your retirement goals with smaller, manageable contributions over time rather than trying to save larger amounts later in life. An early start also provides greater flexibility in how you choose to invest and adapt your strategy as your goals, career, and financial needs change.

How to start saving money for retirement

Getting started saving for the future doesn't have to be complicated. If your employer offers a retirement plan, such as a 401(k), enrolling and contributing regularly is often one of the easiest ways to begin building your nest egg, especially if your employer offers matching contributions. You can also make saving easier by setting up automatic transfers each month, as well as exploring retirement accounts and retirement planning options that align with your financial goals. As De Haan mentions, proactive, disciplined steps can help turn good habits into long-term financial success.

401(k) – Traditional or Roth

401(k)s can help savers take advantage of compounding interest. "Compounding interest is like a snowball," explains De Haan. "The longer your timeframe, the higher the hill becomes that allows the snowball of savings to grow bigger." This combination of steady contributions and long-term growth is what makes 401(k)s such a powerful retirement savings tool. Here are a few features of 401(k) plans to keep in mind:

•  Contributions to a 401(k) may be made with pre-tax or after-tax income
•  Pre-tax contributions may reduce your yearly taxable income
•  Taxes may be paid on withdrawals made during retirement

Individual retirement account (IRA)

An IRA is an account typically set up through a financial institution. There are three main types of IRAs, each offering different tax advantages.

•  Traditional IRAs – Contributions may be tax-deductible if you're eligible, and the account grows tax-deferred. Withdrawals are taxed as ordinary income.
•  Roth IRAs – Contributions are made with after-tax dollars and are not tax-deductible. Once you meet the IRS requirements (age 59½ and the account has been open for at least five years), earnings can be withdrawn free of income tax and penalties.
•  Rollover IRAs – Not technically a separate type of IRA, but rather a Traditional IRA that has received funds rolled over or transferred from a prior employer-sponsored retirement plan. This approach lets you move those assets into an individual account while maintaining their tax-deferred status.

Your contribution limits can vary depending on the account you choose, but you can talk to your tax and financial professionals about what would make sense and how to build a retirement savings strategy to help you achieve your long-term goals.

Retirement savings milestones by age

A retirement planning by age approach recognizes that your priorities naturally shift as you move through each stage of life. In your early years, the focus may be on building consistent saving habits. Mid-career may bring opportunities to increase contributions and revisit your retirement strategy as income grows. Later in your career, attention may shift toward preserving savings and preparing for retirement income needs. These evolving retirement savings milestones can help guide how much to save, how to invest, and what adjustments to make as you get closer to retirement.

How to plan for retirement in your 20s

As you enter young adulthood, you may be wrapping up college and/or entering the workforce. While retirement is further down the road, this can be an excellent time to create a financial plan that can help provide a solid foundation to build upon and give your future self a leg up. Planning for retirement in your 20s is primarily about using time to your advantage and building strong financial habits. This often includes aiming to save a portion of every paycheck, taking full advantage of an employer's 401(k) match if available, and focusing on establishing a budget that can support regular contributions.

In addition to workplace retirement plans, you may also consider opening an IRA to expand your savings options outside of your employer. At this stage, building an emergency fund and avoiding high-interest debt can also help ensure your retirement contributions stay on track. Together, these steps can help set the stage for long-term retirement savings growth and greater financial flexibility in the years ahead.

How to plan for retirement in your 30s

As you enter the third decade of your life and your career gains momentum, your personal and financial goals may evolve. Perhaps you've bought a house, married, or started a family. Even though these new priorities will likely require financial resources, you don't want your retirement savings progress to go by the wayside. Every dollar you put toward retirement in your 30s can help you continue building momentum even as your financial responsibilities increase. If you think about compounded earnings over the next few decades, even if you start saving at age 35, you could substantially grow your savings over the next thirty years.

Since beginning your career, you may have had a raise or stepped into a higher-paying role. Even if you can only manage a percentage point increase, this can help you add more funds gradually without noticing too much being taken from your paycheck. "Our present bias will nudge us to want to spend the raises and consume assets today," says De Haan. "An effective way to manage against this bias is to set up an annual increase to your contribution rates to make sure you pay your future self first before your bias has a chance to nudge your decision." If you've changed jobs or employers at this stage in your career, talk to your tax or financial professional to determine the right course of action.

How to plan for retirement in your 40s

Entering your 40s often means taking more actionable steps to boost retirement savings, especially as you further advance in your career and earn a higher income. Consider whether you may be able to increase your retirement contributions as your income grows, while balancing other priorities such as debt repayment and education savings. While new goals may have been introduced at this life stage, like saving for your children's education or paying down debt, you'll still want to prioritize saving for retirement.

Since financial responsibilities can become more complex during your 40s, this can be a great opportunity to meet with a financial professional if you still need one. Having this trusted guidance can help you create a personalized strategy that keeps you on course toward retirement. If you already have a financial professional, this midway point can be an excellent time to check in and revisit your plan to ensure it still reflects your current and future goals.

How to plan for retirement in your 50s

In your 50s, you may be putting income toward paying off your mortgage or eliminating outstanding debt, but keep your retirement savings goals in mind. With retirement on the horizon, many people begin consolidating their savings and taking advantage of catch-up contributions to strengthen their retirement readiness. At this age, you can contribute more funds to your 401(k) and/or IRA. In addition, if you've fallen behind on retirement savings goals, you may be able to make catch-up contributions to your retirement accounts to help bulk up that nest egg.

Your financial professional can be helpful at this life stage to help you explore other income solutions, like annuities, which can provide a regular "retirement paycheck" once you retire. Life insurance can also be a valuable part of your retirement planning. Along with the death benefit protection it can provide to your loved ones, permanent life insurance may also offer an opportunity to grow cash value that you can access for various needs when you retire. De Haan tells us, "This is a transition decade between accumulation and distribution. This is a good time to review potential retirement liabilities and try to match your investments to potential future income streams to make sure your standard of living is kept the same when you finally decide to retire."

How to plan for retirement in your 60s and beyond

Planning for retirement in your 60s is often focused on turning savings into reliable income and preparing for the transition out of the workforce. At this stage, many people evaluate whether they have enough set aside and begin planning for the "bridge period" before claiming Social Security and Medicare. Because Social Security is generally available starting at age 62 and Medicare at 65, it's important to think about how expenses will be covered in those early retirement years. This may include using accessible savings, retirement accounts, or annuities to help fill income gaps after retirement.

As retirement nears, you may also want to evaluate other factors like healthcare costs, life insurance needs, and creating a legacy for loved ones. By partnering with a financial professional, you can help ensure your retirement plan supports your income needs and long-term goals, while also helping your savings last throughout retirement.

How retirement planning may change as you age

Your retirement strategy may evolve as your goals, time horizon, income needs, and comfort with risk change. Earlier in your career, you may have more time to recover from market fluctuations. As retirement gets closer, you may place greater emphasis on preserving savings and preparing for future income needs. Because every situation is different, consider working with a qualified financial professional to review whether your retirement strategy continues to align with your goals and circumstances.

Contact North American for help meeting retirement savings milestones

No matter where you are in life, having the right tools and guidance can help you stay on track toward your long-term goals. North American offers a variety of life insurance and annuity solutions that can help you build a well-rounded financial plan, support your long-term financial goals, and create greater financial security for the future. To help get started, contact a North American financial professional and discover how thoughtful planning today can help shape the future you want tomorrow.

Under current law, annuities grow tax deferred. An annuity is not required for tax deferral in qualified plans. Annuities may be subject to taxation during the income or withdrawal phase. Neither North American, nor any financial professionals acting on its behalf, should be viewed as providing legal, tax or investment advice. Please rely on your own qualified tax professional.

The views and opinions expressed by Tyler De Haan are his views and opinions as an individual and do not necessarily reflect the views and opinions of North American Company for Life and Health Insurance®.

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.

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REV 8/2026