Retirement Planning in Your 30s: A Practical Roadmap

Why Your 30s Are the Best Time to Start

If you haven't started saving for retirement yet, your 30s are the ideal time to begin. You likely have a more stable income than your 20s, and you still have 30+ years for compound growth to multiply your savings.

Consider this: $500 per month invested at 7% average annual return from age 30 to 65 grows to approximately $830,000. Starting at 40 with the same contribution only reaches about $380,000. That 10-year head start nearly doubles your final amount.

How Much Should You Save?

A common guideline is to save 15% of your gross income for retirement, including any employer match. If that feels like a stretch right now, start with whatever you can and increase by 1% each year.

Here's a rough benchmark by age for your total retirement savings:

• Age 30: 1x your annual salary saved
• Age 35: 2x your annual salary
• Age 40: 3x your annual salary
• Age 45: 4x your annual salary

These are guidelines, not hard rules. Your actual target depends on your desired retirement lifestyle, expected Social Security benefits, and other income sources.

Which Accounts to Use

401(k) or 403(b): If your employer offers a match, contribute at least enough to get the full match. That's free money with an immediate 50% to 100% return.

Roth IRA: After maxing your employer match, consider a Roth IRA. Contributions are made with after-tax dollars, but all growth and withdrawals in retirement are tax-free. The 2026 contribution limit is $7,000 ($8,000 if you're 50+).

Traditional IRA: If your income is too high for a Roth IRA, a traditional IRA offers tax-deductible contributions with taxes due on withdrawals in retirement.

HSA (Health Savings Account): If you have a high-deductible health plan, an HSA is a powerful retirement tool. Contributions are tax-deductible, growth is tax-free, and withdrawals for medical expenses are tax-free. After age 65, you can use HSA funds for any purpose (paying income tax on non-medical withdrawals).

Asset Allocation in Your 30s

With 30+ years until retirement, you can afford to be more aggressive with your investment allocation. A common starting point:

• 80-90% stocks (mix of domestic and international index funds)
• 10-20% bonds (for stability and diversification)

As you get closer to retirement, gradually shift toward a more conservative allocation. Many target-date funds do this automatically.

Common Mistakes to Avoid

Cashing out old 401(k)s when changing jobs. Roll them into an IRA instead. Cashing out triggers taxes plus a 10% penalty, and you lose years of compound growth.

Being too conservative too early. In your 30s, you have decades to recover from market downturns. Being overly conservative means missing out on growth.

Ignoring fees. A 1% annual fee might seem small, but over 30 years it can reduce your final balance by 25% or more. Choose low-cost index funds.

Waiting for the "right time" to invest. Time in the market consistently beats timing the market. Start now with whatever you can.

Plan Your Retirement

Use our retirement calculator to see if you're on track. Enter your current savings, monthly contributions, and expected retirement age to get a personalized projection of your retirement readiness.