Nixon Peabody LLP

  • People
  • Capabilities
  • Insights
  • About

Trending Topics

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni

    Practices

    View All

    • Affordable Housing
    • Community Development Finance
    • Corporate & Finance
    • Cybersecurity & Privacy
    • Environmental
    • Franchising & Distribution
    • Government Investigations & White Collar Defense
    • Healthcare
    • Intellectual Property
    • International Services
    • Labor & Employment
    • Litigation
    • Private Wealth & Advisory
    • Project Finance
    • Public Finance
    • Real Estate
    • Regulatory & Government Relations

    Industries

    View All

    • Cannabis
    • Consumer
    • Energy
    • Entertainment
    • Financial Services
    • Healthcare
    • Higher Education
    • Infrastructure
    • Manufacturing
    • Non Profit
    • Real Estate
    • Technology

    Value-Added Services

    View All

    • Alternative Fee Arrangements

      Developing innovative pricing structures and alternative fee agreement models that deliver additional value for our clients.

    • Continuing Education

      Advancing professional knowledge and offering credits for attorneys, staff and other professionals.

    • Crisis Advisory

      Helping clients respond correctly when a crisis occurs.

    • DEI Strategic Services

      Providing our clients with legal, strategic, and practical advice to make transformational changes in their organizations.

    • eDiscovery

      Leveraging law and technology to deliver sound solutions.

    • Global Services

      Delivering seamless service through partnerships across the globe.

    • Innovation

      Leveraging leading-edge technology to guide change and create seamless, collaborative experiences for clients and attorneys.

    • IPED

      Industry-leading conferences focused on affordable housing, tax credits, and more.

    • Legal Project Management

      Providing actionable information to support strategic decision-making.

    • Legally Green

      Teaming with clients to advance sustainable projects, mitigate the effects of climate change, and protect our planet.

    • Nixon Peabody Trust Company

      Offering a range of investment management and fiduciary services.

    • NP Capital Connector

      Bringing together companies and investors for tomorrow’s new deals.

    • NP Second Opinion

      Offering fresh insights on cases that are delayed, over budget, or off-target from the desired resolution.

    • NP Trial

      Courtroom-ready lawyers who can resolve disputes early on clients’ terms or prevail at trial before a judge or jury.

    • Social Impact

      Creating positive impact in our communities through increasing equity, access, and opportunity.

    1. Home
    2. Insights
    3. Articles
    4. Retirement saving strategies by ageArticles

    Article

    Retirement saving strategies by age

    March 20, 2019

    Share

    NP Trusts and Estates Editorial Team

    Saving for retirement is smart, and saving for retirement with specific tactics at specific ages is smarter.

    Retirement saving strategies are likely to evolve throughout your life, with an early focus on putting away whatever you can, followed by protecting and perhaps catching up on your savings, and then sensibly drawing down assets in retirement. How much to save depends on when you want to retire, and your level of current income. Regardless of these variables, implementing a few savings habits at each stage of life can help increase your retirement security.

    In your 20s. It may be tempting not to prioritize saving for retirement in your 20s because it feels far away. Saving for retirement can also be difficult in this age group because pay checks can be small, and student debt and rent payments can be large. However, this age is also the best time of your life to save for retirement because even the smallest amount of savings has many decades to grow. Putting money aside early also creates a habit of doing so. At the very least, saving as much as your company will match avoids leaving “free money” on the table.

    In your 30s. You will hopefully find yourself with more income during this decade, but are also likely to have new expenses, such as childcare and home maintenance. Having created good savings habits in your 20s may help ensure that you not lose sight of the long-term savings goal. This is a good time to develop a budget. It is also a time where you do not have to be too conservative in your investment choices because you are young enough to withstand market downturns.

    In your 40s. This decade usually means less student debt and a profitable time in your career, but you may also be behind in your savings. At this age, you can make more specific retirement plans in order to stay motivated, such as at least maxing out your 401K contributions each year. It is a good time to recalibrate your saving plan as necessary and increase or decrease your contributions accordingly. Failure to continue saving in your 40s compresses the time that you have to achieve your retirement plans.

    In your 50s. At this age, you are eligible to make catch-up contributions worth an extra $6,000 to 401Ks, and an additional $1,000 to IRAs. Also, if your retirement account balance is significant, this is a good time to consider shifting some of it to more conservative investments to avoid substantial losses leading up to retirement.

    In your 60s. You should view this time as a final chance to get money into retirement accounts before retirement. This is also a good time to consider whether you are financially prepared to leave your job, or whether a part-time or consulting job may be important for you to maintain your lifestyle.

    In your 70s. By this time, you likely will have stopped making new contributions to retirement accounts and have started to take withdrawals, while also enjoying investment growth. People who are 70½ years and older are no longer able to claim a tax deduction on traditional IRA contributions, and annual distributions from traditional IRAs are required after age 70½.

    Although it may be tempting to put off, or burdensome to stick with, saving for retirement early and consistently will be well worth the effort as you enjoy a long and comfortable retirement.

    Trusts And Estates

    Subscribe to stay informed of the latest legal news, alerts, and business trends.Subscribe

    • People
    • Capabilities
    • Insights
    • About
    • Locations
    • Events
    • Careers
    • Alumni
    • © 2023 Nixon Peabody. All rights reserved
    • Privacy Policy
    • Terms of Use
    • Statement of Client Rights
    • Supplier Diversity Program
    • Nixon Peabody International LLC
    • PAL