Your Retirement Savings Timeline

Retirement: No matter how close it is or how much you’ve saved, it still seems to feel far away. But according to a 2016 GoBankingRates survey, the amount of people with more than $1,000 in savings is on the decline, with 34 percent saying they have no savings or fiduciary process at all. This timeline may help you gauge where you fall in your retirement savings and show what experts recommend, but remember that no matter where you are, it’s always better to start late than never.

20s: In your younger years, you can afford to take more chances with your savings, and tackle some risky investments. Unfortunately, you may struggle to meet your monthly expenses. Try to set aside at least 8 percent of your salary, with 20 percent or more going into low-risk stocks.

30s: Although income typically increases by this decade of life, expenses tend to increase as well. A growing family, a larger house, and additional possessions strongly affect monthly earnings, so consider the future when making big purchases. Take care of your possessions and invest in a house that will grow in value.

40s: Your 40s will likely be your prime earning years. But if you have children, college tuition costs are on the horizon. Try to put away as much money as possible during this decade and encourage your children to apply for multiple scholarships.

50s: In your 50s, you should slow down spending, downsize your home, and reduce other living expenses. A large part of affording retirement will be keeping monthly costs as low as possible. If you can calculate your monthly living expenses post-retirement, it’s easier to guarantee you have enough incoming funds.

Exercising good fiduciary process means having money in the bank for the future. If you haven’t begun saving for retirement, you should put a plan in place as soon as possible. In addition to more conservative investments, consider keeping living expenses low to give you the extra money you need to set aside each month.