Planning for retirement isn’t a one-time event—it’s a lifelong journey. Whether you’re just starting your career or approaching your final working years, Thomas McCorry stresses that assessing retirement readiness at different stages of life is essential for financial security and peace of mind. This guide breaks down how to evaluate and improve your retirement preparedness from your 20s to your 60s and beyond.
🧑🎓 In Your 20s: Build the Foundation
Primary Goal: Establish habits and start saving early.
Your 20s are all about laying the groundwork. While retirement may feel decades away, this is the most powerful time to start saving thanks to compound interest.
- Start contributing to retirement accounts: Open a 401(k) or IRA as soon as you’re eligible. Even small contributions can grow significantly over time.
- Take advantage of employer matches: If your employer offers a match, contribute enough to get the full benefit—it’s free money.
- Focus on budgeting and debt reduction: Build financial discipline by tracking expenses and paying down student loans or credit card debt.
- Learn about investing: Understand the basics of asset allocation and risk tolerance. Consider target-date funds for simplicity.
📌 Retirement Readiness Tip: Use online retirement calculators to visualize how early contributions impact long-term growth.
👨💼 In Your 30s: Increase Momentum
Primary Goal: Grow savings and align financial goals.
By your 30s, you’re likely more established in your career and possibly managing new responsibilities like a mortgage or family. Retirement planning should evolve accordingly.
- Boost retirement contributions: Aim to save at least 15% of your income toward retirement, including employer contributions.
- Diversify investments: Consider a mix of stocks, bonds, and alternative assets based on your risk profile.
- Protect your income: Invest in disability and life insurance to safeguard your family’s future.
- Set long-term goals: Define your ideal retirement age, lifestyle, and location. These goals will shape your savings strategy.
📌 Retirement Readiness Tip: Review your retirement accounts annually and adjust contributions as your income grows.
🧑🏫 In Your 40s: Evaluate and Optimize
Primary Goal: Assess progress and make strategic adjustments.
Your 40s are a critical checkpoint. You’ve likely accumulated some savings, but now it’s time to evaluate whether you’re on track.
- Conduct a retirement gap analysis: Compare your projected retirement needs with current savings. Are you behind, ahead, or on target?
- Maximize tax-advantaged accounts: Consider catch-up contributions if you’re 50 or older, and explore Roth conversions if appropriate.
- Refine your investment strategy: Shift toward a more balanced portfolio to reduce volatility while maintaining growth.
- Plan for college and other expenses: Balance retirement savings with other financial obligations like tuition or elder care.
📌 Retirement Readiness Tip: Work with a financial advisor to model different retirement scenarios and stress-test your plan.
👩💼 In Your 50s: Prepare for Transition
Primary Goal: Solidify your retirement strategy and reduce risk.
As retirement nears, your focus should shift from accumulation to preservation and planning.
- Estimate retirement income: Calculate expected income from Social Security, pensions, annuities, and investments.
- Pay down debt: Aim to enter retirement with minimal liabilities, especially high-interest debt.
- Consider healthcare costs: Explore long-term care insurance and understand Medicare eligibility.
- Test your retirement budget: Try living on your projected retirement income for a few months to identify gaps.
📌 Retirement Readiness Tip: Create a retirement checklist that includes income sources, healthcare planning, and lifestyle goals.
👴 In Your 60s and Beyond: Execute and Adjust
Primary Goal: Transition into retirement and manage withdrawals.
Once you retire, the focus shifts to managing income, minimizing taxes, and maintaining your lifestyle.
- Decide when to claim Social Security: Delaying benefits can increase monthly payments, but personal circumstances matter.
- Implement a withdrawal strategy: Use the 4% rule or other methods to avoid outliving your savings.
- Stay engaged: Consider part-time work, volunteering, or consulting to stay active and supplement income.
- Review estate plans: Ensure wills, trusts, and beneficiary designations are up to date.
📌 Retirement Readiness Tip: Revisit your plan annually to adjust for inflation, market changes, and evolving personal needs.
🧭 Final Thoughts: Retirement Readiness Is a Lifelong Process
Assessing retirement readiness at different stages of life ensures that you’re not just saving—but saving smart. Thomas McCorry says from building habits in your 20s to managing withdrawals in your 60s, each decade offers unique opportunities to strengthen your financial future.
Whether you’re just starting out or refining your exit strategy, remember: retirement is not an age—it’s a financial condition. The earlier and more strategically you plan, the more freedom and flexibility you’ll enjoy later.