The path to retirement is a long one, so it really helps to have more checkpoints along the way than just your target retirement age. While having an idea of when you would like to retire is always a good idea, checking your progress at important milestones and ages is an even better one. Unless you’re already working with a financial advisor or certified financial planner, you may not have an idea of what those milestones are. To help you put together or strengthen your retirement saving strategy, let’s review some milestones on your path to retirement to plan for in advance.
In your 20s: consistently contribute to your IRA and 401(k)
In your twenties, make consistent contributions to employer-sponsored retirement plans like a 401(k) or IRA if they're available to you. Starting early in these crucial working years is key to maximizing the benefits of compound interest, which can fuel the growth of your retirement savings over decades. A 2024 survey highlights the importance of this step, revealing that 68% of workers regret delaying saving for retirement. We highly recommend not withdrawing from your retirement accounts during this phase, as it can potentially lead to serious regrets about your retirement investing strategy as you get older. At least 48% of those who have taken a loan and 60% who withdrew money from their retirement accounts report regretting their choice.
Take advantage of employer match
Don't miss out on your employer's retirement plan match if one is available. This match is essentially extra funds deposited directly into your account, boosting your savings efforts. By not contributing enough to get the full match, you could miss out on thousands of dollars in potential retirement savings throughout your career.
Milestone: if you get married or have a long-term partner
Finding your soulmate doesn’t only rock your world, but also it may rock your finances. To make sure that the latter it’s in a good way, you may want to designate your spouse or partner as the beneficiary of your retirement account. Qualified plans are subject to ERISA regulations, so your will will not apply here. In addition, once you become married, your current beneficiary on file will most likely become obsolete. Regulations require spousal consent to elect someone other than your spouse as beneficiary. Failure to designate a beneficiary for your account will result in your plan document determining your beneficiary in the event of your death. This usually results in your spouse, children or estate receiving your account benefits.
Additionally, talk with your spouse about his or her retirement strategy, particularly when he or she plans to retire, how much he or she would need for retirement, what they are using to save for retirement, and how much they’re contributing to retirement. This conversation is necessary to align your retirement plans.
Milestone: when your first child is born
At this point, you need to revisit the previous conversation that you had with your spouse. The newest member in your family will surely affect your plans, so you need to take a second look at your retirement strategy. Based on this, you may need to adjust your contributions, change your asset allocation, and evaluate whether or not to open additional retirement savings accounts.
In your 30s: at least saved your annual salary
According to several surveys, in your 30s you should have the equivalent of your annual salary in your retirement account. This number should serve as a sign for either “keep up the good work” or a wake-up call. Besides bumping up your contributions, consider also shifting more of your funds to equities. You still have many years until retirement, so you can afford to take the swings of the market. According to Vanguard’s “How America Saves 2016” report, plan holders age 30 to 39 allocate at least 85% of their monies to equities.
In your 40s: at least saved triple your annual salary
A rule of thumb for Americans saving for retirement is that you should have about three times your annual salary saved some time in your 40s. If you just gasped, you’re not alone! Most plan holders are seriously falling behind against that benchmark. In 2015, Vanguard reported that plan holders ages 45 to 54 only had saved an average of $124,487 and a median of $50,925.
If you’re feeling a bit overwhelmed at this point, you should consider hiring the services of a financial advisor.
Age 50: consider making catch-up contributions
Individuals aged 50 and over can make annual catch-up contributions to give their retirement accounts a much-needed boost. In 2025, you can contribute an additional $7,500 per year to your 401(k), 403(b), SARSEP, and governmental 457(b) and an additional $1,000 to your traditional or Roth IRA. If you have fully paid your mortgage, student loans, or other financial obligations, use salary raises and windfalls to take advantage of these catch-up contributions.
Also, to make the most out of your higher contributions, revisit your allocation to equities. Depending on your retirement strategy, it may be time to start gradually switching from a growth strategy to an income strategy.
Age 59 1/2: you can withdraw from 401(k) without penalties
You’ll still be liable for applicable income taxes. However, it’s a useful date to keep in mind that you have a last resort fund in case you’re in a serious cash crunch. If your expense isn’t one of the exceptions to the 10% tax penalty, then it could make sense to wait until age 59 ½ to minimize the hit.
Age 62: you could become eligible for Social Security benefits
This is the earliest age at which you can claim regular Social Security retirement benefits. However, you’ll take a reduced benefit if you do not wait until the full retirement age.
Milestone: when your first grandchild is born
When your first grandchild is born, you’ll have another opportunity to revisit your beneficiary form and update your estate plan. If you don’t have a will or estate at this point, you should definitely take the time to set one up.
Age 73: keep an eye on required minimum distributions
Required Minimum Distributions (RMDs) from pre-tax retirement accounts must begin no later than April 1 of the year after you reach age 73. Failing to take your RMD can result in a significant penalty.
Roth IRAs and Roth balances in qualified plans are not subject to the RMD requirement. In qualified plans, the RMD can be delayed past age 73 only if you are still employed by the company sponsoring the 401(k) and you are not considered a 5% owner of that company (including attribution).
The bottom line
In sum, accumulating enough money for a comfortable retirement is a lifelong marathon. It’s important to consider where you are relative to life milestones to ensure that you’re on the right track to a more comfortable retirement. By regularly contributing to your retirement account and adjusting your contributions according to your salary and age, refraining from making withdrawals before 59 ½, and potentially making catch-up contributions if needed, you will likely position yourself for a more comfortable retirement
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