How Much to Save for Retirement by Age 30, 40, And 50
June 23, 2021 | June Mckaig
Although several factors determine how much money you’ll need in retirement, financial advisors generally recommend saving an amount equal to your income by age 30, three times your income by age 40, and six times your income by age 50.
By putting away about 15% of your income every year starting at age 25, you should have saved up ten times your yearly income by the time you retire at age 67.
Sound daunting? Read on to learn how much to save for retirement by age so you can learn where you stand. We also cover using title loans online if you are in dire need of cash without touching your retirement funds.
How Much to Save for Retirement by Age Group
How Much to Save for Retirement by Age 30
If you are in your twenties, retirement is likely far from your mind. You probably just started your career and might be too busy paying off student debt or car loans or saving up for a down payment on a house to consider putting away money for retirement.
Yet financial experts recommend beginning to save 15% of your income for retirement starting at age 25 so that by age 30, you have put away an amount equal to your annual income. It’s imperative to start saving for retirement early on so that you don’t fall too far behind.
If you have student loans or car payments tying up your finances, pay them off as soon as possible, and then put that same payment amount towards your retirement fund in the following months.
What if you really can’t afford that 15%? Start by putting a smaller proportion of your income into your retirement fund, since something is better than nothing. Then increase that amount by 1% each year. You will be well on your way to catching up in savings in no time.
How Much to Save for Retirement by Age 40
There are two benchmarks for retirement savings people in their thirties should keep their eye on. While many know how much to save for retirement by age 40 (3x your income), it is less common knowledge that by age 35, your retirement fund should equate to twice your income.
By the time you reach your thirties, you’ve likely already been saving money for retirement for several years. If you haven’t started saving yet, you should start now.
Your concerns in your thirties are likely quite different from the ones you had in your twenties. By this age, you may have children or a house, which may even have a mortgage.
Those expenses add up, but you should make an effort to carve out enough room for retirement savings in your budget. If you begin putting money away sooner rather than later, you will have more wiggle room in your budget later in life and more money available to you in retirement.
How Much to Save for Retirement by Age 50
For many people, their forties are their peak earning years. In this decade, you’ll want to double the amount you’ve already saved for retirement so that by age 50, you’ve put away a value worth six times your income.
If you haven’t started saving yet or have fallen behind, you should make a concentrated effort to contribute more to your retirement fund. Also, bear in mind that once you turn 50, you’ll be able to use the 401(k) catch-up provision to add more money to your fund.
Avoid Dipping Into Your Retirement Fund
When an emergency happens, your retirement fund may look like a sensible source to dip into to cover the costs. Don’t fall for the temptation! Most Americans’ retirement savings are woefully inadequate.
Once you invest your hard-earned money in your retirement fund, you should avoid withdrawing a single penny. If you urgently need money, instead of dipping into your savings, getting car title loans through Wisconsin Auto Title Loans, Inc. may be an option worth considering.
What Is A Title Loan And How Can It Help?
A title loan uses the lien-free title of your car, truck, or van as collateral. Wisconsin Auto Title Loans, Inc. will hold onto the title, but you still get to drive your car for the duration of the loan. You can get up to $15,000 in as little as 30 minutes.
How to Get Title Loans Online?
Getting title loans online is a quick and easy process. Here’s all you have to do:
- Fill out the online form on Wisconsin Title Loans, Inc. or call a Wisconsin Auto Title Loans, Inc. location directly to have a store representative call you.
- Bring your vehicle, its lien-free title, and your government-issued ID to your local Wisconsin Auto Title Loans, Inc. store.
- At the store, an associate will inspect your vehicle to determine the amount of your loan. You can qualify for a loan with good credit, bad credit, or no credit.
- In 30 minutes or less, you will know whether you qualify, and you can complete the title loan paperwork to secure the money you need.
Retirement Should Always Be One of Your Priorities
By now you know how much to save for retirement by age 30, 40, and 50. If these lofty goals seem out of reach for you, do not fret since careful planning will enable you to get back on track.
To make sure you hit all those retirement savings milestones on time, you’ll want to start putting away 15% of your income at age 25 or as soon as possible.
Once you’ve started saving, you don’t want to pull any money back out. Avoid dipping into your retirement fund when you face an emergency by getting title loans online from Wisconsin Auto Title Loans, Inc. Check your eligibility today!