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Savings Goals by Age

7/30/2018

There are certain financial milestones associated with every stage of life. At every age, there are unique opportunities to set yourself up for future growth. Whether you’re just starting out in your career or planning for retirement, check out our list of savings goals by age.
Savings Goals by Age

Tips to Achieve Your Savings Goals by Age

In Your 20s

  • Learn how to budget and set financial goals. Your first job comes with a first paycheck, and setting the foundation for smart financial decisions begins by creating a budget and developing specific savings goals.
  • Invest in a 401(k). In your 20s, time is on your side. Start investing a percentage of each paycheck in a 401(k) plan and watch your money grow throughout your career.
  • Build an emergency fund. To prepare for life’s unexpected moments, start saving money in a rainy day fund. You should have enough money to cover between three and six months of expenses.

In Your 30s

  • Save for your first home. As you become more established in your career, put your savings toward a down payment for your first home. This investment will pay off over time as you build equity through mortgage payments.
  • Increase contributions to your 401(k). In your 30s, increase your monthly contributions to your account by 5 to 10 percent. The more you can save now, the better you’ll be prepared for retirement.
  • Pay off outstanding debt. Student loan and credit card debt can sneak up on you over time. Make it a priority to pay off these debts in your 30s to help you achieve your savings goals without the burden of costly interest rates.

In Your 40s

  • Invest in a 529 plan. Your child’s college education comes with a hefty price tag, so start saving as early as possible with a 529 plan. Even if you’re only able to invest a small amount each month, every dollar counts toward your child’s future.
  • Max out employee benefits. Contribute the maximum amount toward your employee benefits, including a 401(k) plan. As you get closer to retirement age, you’ll want to increase your savings as much as possible.
  • Set up estate plans for aging parents. Your 40s can be a challenging time as you balance taking care of your children as well as your aging parents, but make sure you have a plan in place for your parents’ estate to best prepare for the future.

In Your 50s

  • Max out your 401(k). If you haven’t already, max out your 401(k) in your 50s to play catch up for any financial mistakes you may have made when you were younger. Don’t leave any free money sitting on the table.
  • Reevaluate your retirement plans. Take a look at your investments and retirement strategy to make sure you are taking full advantage of your plans. Speak with an adviser if you would like to make any changes.
  • Update your will. As part of your legacy, update your will to ensure your family will be financially secure in the future.

PFCU is here to help individuals and families achieve their financial goals at every stage of life. We offer the knowledge and tools to prepare you for savings milestones throughout adulthood.

Erin Elis 
Erin Ellis
Accredited Financial Counselor ®
Philadelphia Federal Credit Union
eellis@PFCU.COM