Planning for Retirement in Your 30s: Steps to Secure Your Future

Why Start Planning in Your 30s?

When it comes to retirement savings, time is your best friend. That’s because of compound interest—where your money earns interest, and then that interest earns more interest. The earlier you start, the more your money can grow on its own.

For example, if you save just $200 a month starting at age 30 and earn an average of 7% annually, you could have over $240,000 by the time you’re 60. Wait 10 more years to start, and you’ll have to save nearly twice as much each month to hit the same goal.

The 30s are also a time when many people start earning more and gaining stability in their careers. That makes it an ideal time to lay a strong financial foundation for the future.

Step 1: Know How Much You’ll Need

It’s hard to hit a goal you haven’t defined. A common guideline suggests aiming for 10–12 times your annual salary saved by retirement, but everyone’s situation is different.

Start by thinking about the lifestyle you want. Do you plan to travel? Move somewhere new? Downsize and live simply? Estimate your yearly retirement spending, then multiply that by the number of years you expect to be retired—often 25–30 years or more.

Don’t stress about being exact. The point is to give yourself a target so you can start working toward it.

Step 2: Max Out Employer Benefits

If your employer offers a 401(k), especially one with a matching contribution, take full advantage. That match is basically free money—something you should never leave on the table.

For example, if your employer matches 50% of contributions up to 6% of your salary, and you make $50,000 a year, contributing 6% would get you an additional $1,500 per year from your employer. That adds up fast over time.

If your job doesn’t offer a retirement plan, don’t worry—there are still other options.

Step 3: Open an IRA or Roth IRA

If you don’t have a 401(k), or want to save more on top of it, an IRA (Individual Retirement Account) is a great option. You can contribute up to $7,000 per year as of 2024 if you’re under 50.

A Traditional IRA offers tax-deductible contributions now, with taxes paid later when you withdraw the money. A Roth IRA is the opposite—you contribute after-tax dollars now, but your withdrawals in retirement are tax-free.

Roth IRAs are especially popular with younger savers, since your current tax rate is likely lower than it will be in retirement.

Step 4: Set Up Automatic Contributions

The easiest way to save for retirement is to automate it. Set up automatic transfers from your paycheck or checking account into your retirement accounts. This removes the temptation to spend the money elsewhere and keeps your savings on track.

Even if you start small—say, $50 a month—it builds the habit. You can always increase your contributions as your income grows.

Step 5: Choose the Right Investments

You don’t have to be a financial expert to invest for retirement. Most 401(k)s and IRAs offer target-date funds, which automatically adjust your investments based on your expected retirement year.

In your 30s, you have decades before retirement, so you can afford to take more risk. That means more of your investments should be in stocks rather than bonds. Over time, as you get closer to retirement, you can shift to more conservative options.

If you’re not sure where to start, a target-date fund or speaking to a financial advisor (many apps offer access to one) can be a smart move.

Step 6: Pay Down High-Interest Debt

Saving and investing are important—but so is tackling high-interest debt. If you’re carrying credit card balances with double-digit interest rates, those can eat away at your progress.

Create a plan to reduce or eliminate these debts while continuing to contribute to retirement. You don’t have to choose one or the other—just find a balance. Even modest retirement contributions while paying down debt keep you moving forward on both fronts.

Step 7: Build an Emergency Fund

Before putting everything into retirement accounts, make sure you’ve got an emergency fund. Having three to six months’ worth of expenses saved in a separate account can protect your retirement savings from being tapped when life throws a curveball.

This safety net gives you flexibility—and peace of mind—so you can stay committed to your long-term goals.

Step 8: Revisit and Adjust Regularly

Your 30s are a decade of change—career moves, starting a family, buying a home. As your life changes, your retirement strategy should too.

Revisit your plan at least once a year:

• Are you still on track with your goals?
• Can you increase your contributions?
• Have your priorities or timelines changed?

Use this time to tweak your budget, adjust your risk level, and make sure your retirement savings stay aligned with your life.

What If You Feel Behind?

Don’t panic. The most important thing is to start now. Many people don’t begin saving for retirement until their 40s or later—and still manage to catch up.

If you’re starting later or haven’t saved much yet:

• Focus on increasing your income and cutting expenses
• Max out contributions if you can
• Consider side hustles or bonuses as a chance to save extra
• Look into retirement catch-up contributions once you turn 50

The earlier you act, the more options you’ll have later.

Final Thoughts

Planning for retirement in your 30s doesn’t require perfection—it just requires action. Whether you’re saving a lot or a little, the key is to get started and keep going. Small, consistent steps will add up to big results over time.

Take advantage of employer benefits, automate your savings, invest wisely, and keep your eyes on the long game. Your future self will thank you—and you’ll sleep better at night knowing you’ve got a plan in place.