How to Save for Retirement in Your 30s: Six Steps for a Financially Secure Future

How to Save for Retirement in Your 30s

Life can throw many financial challenges your way— unexpected home repairs, student loans, and rising costs of living—that make it feel hard to put money away. Luckily, if you’re in your 30s, you still have plenty of time to get on track to achieve your ideal retirement—even if you haven’t started saving yet.

Six ways to save for retirement early in your career

By taking proactive steps now, you can build a strong financial foundation and ensure a comfortable retirement. Follow these six steps to help set yourself up for a secure retirement:

Live within your means
Your 30s are a major turning point in your life—with career growth, family planning, and big financial decisions. Making thoughtful choices today can help you avoid overspending as your income grows.

Choose a city or neighborhood with housing that aligns with your budget. Be sure to factor in rent vs. mortgage costs, property taxes, and overall cost of living.
Be mindful of big purchases. Research alternatives to see where you could cut costs, and only make decisions that feel financially comfortable.
Before buying, ask yourself if you can afford to buy an item twice. If not, consider finding a cheaper alternative or wait until you can comfortably afford it.

Increase your 401(k) contributions annually

For many, a 401(k) or similar employer-sponsored plan is the main retirement savings vehicle. Regularly ramping up 401(k) contributions throughout your career can help maximize your retirement readiness. Start saving as early as possible to take advantage of compounding interest, which can significantly grow your savings over time.

Benefits of saving in a 401(k):

High annual contribution limits can help you catch up on retirement savings in your 30s if you weren’t able to start saving in your 20s.
Traditional 401(k) contributions are made on a pre-tax basis, limiting your annual tax liabilities.
Contributions are deducted straight from your paycheck—making it easier to save.
Employer matching contributions may be available.

Wondering how much to contribute? As a general rule, aim to save at least 10 percent of your salary—but adjust this based on your financial situation.

Ask for a raise

As your career grows, it’s important that your compensation reflects your expanding skills and responsibilities. Asking for a raise can feel uncomfortable, but it allows you to increase your retirement contributions.

If a raise isn’t possible, use annual bonuses to increase contributions to your 401(k). Think of your bonus as “extra money”; you didn’t rely on it to make ends meet, so you can maintain your current lifestyle while saving more for your future.

Avoid borrowing from your 401(k)

Many 401(k) plans allow you to withdraw funds as a loan. Taking a loan from your 401(k) might seem tempting, but it can set back your retirement goals.

Cons of borrowing from your 401(k):

You’ll have less to benefit from compounding interest. This can have lasting effects on your overall account balance at retirement age.
You may miss out on employer matching contributions while you’re repaying the loan.
401(k) loans are repaid with after-tax dollars, meaning you could face double taxation when the funds are withdrawn in retirement.

Consider Social Security benefits before taking time off

Many families consider having one parent stay home to save on childcare costs. Before leaving the workforce for an extended period, consider how it will impact your future Social Security benefits.

The Social Security Administration calculates your retirement benefits based on your 35 highest-earning, inflation-adjusted working years. If you don’t work for at least 35 years, a $0 salary is averaged into your earnings history, which can significantly reduce your total monthly benefit.

Understand how your long-term savings translate

Whether or not you started saving for retirement in your 20s, assess how your current savings will support your retirement goals.

By age 30, aim to have half of your annual salary saved for retirement.
By age 35, aim to have one full year’s salary saved.

Retirement planning doesn’t have a one-size-fits-all solution. If you haven’t reached these milestones, don’t panic. Any amount saved is progress, and you can ramp up your savings and contribution rate over time.

What to do if you don’t have retirement savings at age 30

If you’ve reached age 30 and haven’t started saving for retirement, it’s not too late.

Start now—Enroll in your job’s 401(k) plan or open an Individual Retirement Account (IRA) and start contributing.
Balance savings and debt—It is possible to save for retirement while paying down debt. The key is to have a strong grasp on your budget and spending to keep yourself on track.
Increase contributions regularly—Make a habit of increasing your retirement contributions over time. As your compensation grows or your debt shrinks, consider boosting your contribution rate.
Focus on the long-term—Retirement will likely account for a large portion of your life. The sooner you start saving, the better prepared you’ll be.

It’s never too late to act. Start saving today and plan for your future. If you have any questions along the way, we’re here to help.