By Ally Meier, CFP®, CDFA® CPFA® Associate Financial Advisor

Retirement can feel like a far-off idea when you are young, but it’s never too early (or too late) to start planning. In fact, the younger, the better! Each decade brings unique opportunities and challenges that can shape your future. Here’s a checklist to help you stay on track through each decade and retire with confidence.

In Your 20s: Time is your best friend!

• Start saving, anything is better than nothing. Even small contributions can grow significantly thanks to compound interest. Make sure you are focusing on retirement savings and home savings.
• Open a retirement account. If your employer offers a 401(k), contribute enough to get the match. A Roth 401k is even better. If your company doesn’t offer either, open a Roth IRA.
• Live below your means. Avoid lifestyle creep and prioritize saving over spending. If you get a raise, continue to live off your previous salary (since you know you can). Do not let yourself build up unnecessary debt, it will be harder to pay off than you think.
• Learn the basics of investing. Focus on long-term growth through diversified index funds. Avoid following the trends (i.e. crypto, meme-stocks, day-trading, etc.).

In Your 30s: Increase Momentum

• Increase your contributions. Aim to save at least 15% of your income toward retirement, the more, the better!
• Roll over old retirement accounts. Keep your savings consolidated and easy to manage. You would be surprised how many people lose track of old retirement accounts.
• Protect your income and loved ones. Consider life insurance and disability insurance if you have dependents. The younger you are, the cheaper insurance is, generally. Ensure you set up an estate plan that protects your assets and your dependents.
• Fund future expenses: Consider opening a college savings account (529 account) for your children. This is a tax-deferred way to save for college, and ensuring you have the funds set aside allows you to not have to worry about that expense in retirement.

In Your 40s: Catch Up and Plan Ahead

• Max out retirement contributions if possible. Take advantage of your higher income. Save as much as possible, while still enjoying your life. It’s all about balance.
• Open a Health Savings Account (HSA), if eligible. It’s a triple-tax-advantaged tool for healthcare. Use the tax-free distributions for current medical expenses, don’t try to save it for later.
• Start thinking about your stretch home. Structure your mortgage in a way that reduces your expenses in retirement. A 30 year mortgage starting in your 40s will mature at 70, therefore you won’t have to worry about a mortgage payment in retirement.
• Meet with a Financial Advisor. Get professional input on your progress and strategy. Work with an advisor to put together a financial plan tailored to you and make sure you are on track to meet your goals. It’s better to find out that you are not on track to meet your goals now, rather than a few years before retirement.

In Your 50s: Keep your eye on the prize – retirement.

• Take advantage of catch-up contributions. You can contribute more to your 401(k) and IRA after age 50.
• Revisit your retirement timeline. Decide when you want to retire and estimate how much you’ll need annually. Make sure that you will have enough money by the time you retire to fund your lifestyle in retirement.
• Evaluate your healthcare options. Start thinking about Medicare, long-term care, and insurance needs.
• Start thinking about your retirement lifestyle. Will you move? Downsize? Travel? Think about your purpose, place, and community. Retirement isn’t just a financial burden, but it is a huge lifestyle shift as well. You want to make sure you are mentally prepared for it and that you have your community, routines, and purpose in place.
• Revisit your plan with your Financial Advisor. Check in and make sure your financial plan is still on track with your goals. Run different scenarios to help you make decisions about when to retire, where you want to live, etc.

In Your 60s: Homestretch!

• Finalize your retirement income plan and financial plan with your Financial Advisor. Determine how much will come from Social Security, retirement accounts, pensions, and other sources. Review your financial plan with your Financial Advisor frequently to make sure you are on track.

• Apply for Medicare. You can sign up at age 65 – don’t miss the enrollment window or else you can be penalized.
• Decide when to claim Social Security. Delaying benefits can increase your monthly payout. It is generally recommended to wait until age 70 to take your Social Security income, that way you get the highest benefit. You will get this income for the rest of your life, which could be 30+ years. A small monthly increase in benefits makes a big difference over a long period of time.
• Review your estate plan. Update wills, beneficiaries, power of attorney, and healthcare directives.
• Plan your withdrawal strategy. Understand required minimum distributions (RMDs) and how to withdraw tax-efficiently.
• Make sure you are ready before you retire. It’s very hard to undo retirement once that flip is switched.

Retirement planning isn’t something you do all at once, it’s something you build over time. By taking intentional steps in every decade, you’ll build not only financial security but also the freedom to enjoy the retirement lifestyle you envision. No matter your age, the best time to start is now. The longer you wait, the harder it gets.