A retirement for the ages

How to save, from first job to finish line

The best time to plant a tree was 20 years ago. We believe the second best time is today. We like to think that logic applies to planning for retirement, too. Across all generations, 60% of workplace savers are worried about outliving their savings. So, if you’re new to the workforce, now is the best time to start. If you’re further into your career, now is still the best time to start.

One thing to do:

If your employer offers a 401(k) plan, sign up for it (they may even auto-enroll you). If you don’t have access to a 401(k) plan – about half of U.S. private sector workers don’t – look into IRAs or target date ETFs.

Two things to consider:

1. Using a digital retirement planning tool. There are a lot of options out there to help plan your path, including how much you should contribute to your retirement plan.
2. Asking if your retirement investments are taking on the right amount of risk. Target date funds are designed to do much of the work for you, adjusting asset allocations throughout your career based on the year you plan on retiring.

One thing to do:

Re-evaluate your retirement plan contribution. Some plans offer auto-escalation that increases your contributions by 1% each year – but it’s worth seeing if you can increase it even more.

Two things to consider:

1. Balancing how much you can save for retirement and still be able to take care of immediate financial needs, like emergencies and paying down high-interest debt. If you have student debt, employers can now opt in to provide matching contributions for student loan payments.
2. Revisiting your retirement goals. Big milestones like marriage, starting a family and buying a home can all impact your saving strategy – so can your plans for how you want to enjoy retirement. Make sure that strategy stays aligned as your life changes.

One thing to do:

Consider taking advantage of catch-up contributions. Starting at age 50, you can contribute up to $7,500 ($11,250 in 2025 if you're 60-63) extra annually in your 401(k) per IRS rules, and you don’t actually have to be behind to 'catch-up'.

Two things to consider:

1. Looking at all your potential options for generating – and optimizing – retirement income, which could include Social Security, a defined benefit plan or 401(k) and a retirement income solution like LifePath Paycheck™.
2. Estimating how much you could spend in retirement and not run out, which you can do using a digital tool like our LifePath® Spending Tool. It uses current age, current savings portfolio equity allocation and Social Security estimates to calculate retirement spending potential.