Your Retirement Savings Roadmap

Ever wanted a ‘back of the napkin’ guide to retirement savings? This guide outlines age-based benchmarks as a helpful starting point—but we believe a comprehensive financial plan that reflects your full financial situation is what truly makes the difference.

Your 20s: Build the Habit, Not the Number

Your most valuable retirement asset in your 20s isn’t money — it’s time. Compound growth works exponentially, meaning a dollar invested at 25 is worth roughly twice what a dollar invested at 35 will be by retirement.

• Contribute at least enough to capture your full employer 401(k) match. That match is an immediate 50–100% return on your money.
• Open a Roth IRA if you’re eligible. Your tax bracket is likely the lowest it will ever be. Pay taxes now; enjoy tax-free withdrawals in retirement.
• Aim for a savings rate of 10–15% of gross income. Even 6% with a 3% match gets you moving in the right direction.

Your 30s: Build Momentum Through Life’s Competing Demands

Your 30s often bring mortgages, children, and career pivots — all competing with your retirement contributions. This decade is about protecting your savings rate despite the noise.

• Avoid lifestyle creep. When you get a raise, immediately direct a portion to retirement savings before it disappears into spending.
• Max out tax-advantaged accounts, if possible. If you can’t hit the max, increase contributions by 1% per year.
• Build an emergency fund (3–6 months of expenses) so you never need to raid your retirement accounts.

Your 40s: Peak Earning Years — Maximize Every Dollar

For many people, the 40s represent peak earning potential. This is the decade to accelerate savings aggressively and make sure retirement is truly funded — not just vaguely planned for.

• Front-load contributions early in the year to maximize time in the market.
• Reassess your retirement income needs. Do a projection — if your current trajectory falls short, the 40s are early enough to course-correct meaningfully.
• Don’t let college savings crowd out retirement. Your children can borrow for college. You cannot borrow for retirement.

Your 50s: Catch-Up Contributions and the Final Push

The IRS gives you an important gift at 50: catch-up contributions. Starting at age 50, you can contribute an additional $8,000 to your 401(k) or 403(b) and a new provision allows a “super-catch-up” of $11,250 for ages 60-63.

• Max out catch-up contributions every year from age 50 onward — this is one of the most tax-efficient moves available to you.
• Estimate your Social Security benefit using the SSA’s online tool, and model different claiming scenarios (62 vs. 67 vs. 70).

Your 60s: Transition from Accumulation to Distribution

The focus shifts from growing your nest egg to protecting it and creating a reliable income stream. Sequence-of-returns risk — the danger of a market downturn in the first years of retirement — becomes your biggest concern.

• Build a cash reserve (1–2 years of expenses) so you don’t need to sell investments in a down market.
• Develop a withdrawal strategy covering which accounts to draw from first (taxable, then tax-deferred, then Roth) for optimal tax efficiency.
• Explore a strategy to maximize Social Security Income. Every year you wait beyond 62 increases your benefit by roughly 6–8%. Waiting until 70 can mean a benefit 76% larger than claiming at 62. This should be done in conjunction with a retirement projection and your specific circumstances.
• Understand Required Minimum Distributions (RMDs). Starting at age 73, the IRS requires annual withdrawals from traditional IRAs and 401(k)s. Failure to take them results in steep penalties.

As you can see, there’s more to a retirement plan than just numbers. We believe in a holistic approach to financial planning, where preparing for retirement is just as important as navigating through it. Call anytime to talk more about how we help our clients navigate every piece of their financial puzzle.

Sources: https://www.fidelity.com/viewpoints/retirement/how-much-do-i-need-to-retire
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits#:~:text=$8%2C000%20in%202026%20to%20traditional,SIMPLE%20401(k)%20plans

SSB Wealth Management, Inc., d/b/a Rembert Pendleton Jackson (“RPJ”) offers investment advisory services and is registered with the U.S. Securities and Exchange Commission (“SEC”). SEC registration does not constitute an endorsement of the firm by the SEC nor does it indicate that the firm has attained a particular level of skill or ability.  You should carefully read and review all information provided by RPJ, including Form ADV Part 1A, Part 2A brochure and all supplements, and Form CRS. 

This information is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product or concept. These materials are not intended as any form of substitute for individualized investment advice. The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own. You should not treat these materials as advice in relation to legal, taxation, or investment matters.

Certain information contained herein was derived from third party sources as indicated.  While the information presented herein is believed to be reliable, no representation or warranty is made concerning the accuracy of any information presented.  RPJ has not and will not independently verify this information.  Where such sources include opinions and projections, such opinions and projections should be ascribed only to the applicable third party source and not to RPJ.