When To Start Planning Your Back 9
It’s great that you’re thinking about retirement planning! The best time to start is as early as possible, ideally when you begin your career. Starting early allows you to take full advantage of compound interest, which can significantly grow your savings over time
Here are some key milestones to consider:
- 20s to 30s: Begin saving as soon as you start working. Even small contributions can grow substantially over time due to compound interest.
- 40s: Aim to maximize your retirement account contributions. This is a crucial period to boost your savings.
- 50s: Take advantage of catch-up contributions to retirement accounts, which allow you to save more as you get closer to retirement.
- 60s: Plan your Social Security strategy and consider when to start taking benefits. Also, review your retirement savings and adjust your investment strategy if needed.
- 70s: Be aware of required minimum distributions (RMDs) from retirement accounts, which typically start at age 73.