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Don’t wait for retirement to catch up to you: Retirement Planning in Your 20s and 30s

February 02, 2022
Congratulations! Your educational years may be behind you, and perhaps you’re settling into your career – and maybe even thinking about buying a home or starting a family.

Being in your 20s to 30s is exciting, right? While living in the present moment is important, you don’t want to miss your chance to get your retirement planning off to a great start. As far off as it may seem, now is the ideal time to make a plan and start saving.

Time is the key to your retirement success
You can never begin planning and saving for retirement too early, especially since time is your number one asset for building wealth. Look at it this way: if you follow a general recommendation of saving 15% of your income every year, by age 30 you could have at least $47,000 saved3. And all that money will be earning more – for the next 35 years or until you retire. 

Unfortunately, most people don’t follow this advice. According to the Federal Reserve’s data for 2019-2020, 24-29-year-olds had saved an average of $9,400, 30-34-year-olds had put aside an average of $21,732, and those 35-39 had $48,710. Needing an extra 10 years to put aside $47,000 may not sound like a big deal, but it could make a big difference later.

Assuming you do follow the expert advice and put away 15% a year, every year, you could accumulate over $250,000 by the time you reach 65. And that’s before factoring in investment returns. But what if you want to retire younger? Say, 50? Well, you’ll need to stash away a lot more.

Knowing all that, the worst thing you can do is nothing. The second worst is to wait. Especially since for the key to retirement success is determination, a plan, and an experienced, trustworthy expert. 

Best savings feature ever? Compound interest
Establishing your retirement savings and investments today with Middlesex Savings Bank allows you to benefit from one of the best savings features ever: interest compounding. That’s where the interest your money earns also earns interest. It’s like supercharging your savings – and it happens automatically.

Start now, and the money you save and invest will begin building right away into a secure fund that will be there when you’re ready to step away from the paycheck.

Unfortunately, few Generation Y, Z and Millennials think about saving for retirement early enough. And those who do, are usually putting away too little. In a 2019 survey by Statista, only one in five Millennials surveyed reported saving at or above the recommended minimum 15% of annual income. One in three reported no retirement savings at all.

Smart moves retirement savers make
If you’re not enrolled in your employer’s 401(k), consider it – especially if it’s one that matches employee contributions. If you are enrolled, great job! But also consider setting up your own portable retirement portfolio – either a traditional or Roth individual retirement account to maximize your savings potential.

To make sure you’re taking advantage of all the opportunities and properly diversifying and protecting your savings, it’s helpful to work with an advisor you can trust. Our investment advisory affiliate, Middlesex Financial Group2, is ready to guide you in exploring a range of investment options. 

While retirement feels far away when you’re in your 20s and 30s, it’s essential to begin a diligent savings plan now. With proper planning, you can enjoy your later years without the stress of wondering how you’ll afford the life you want. Middlesex Savings Bank is here for you today and tomorrow. Reach out to us today or stop by one of our convenient branches today.


Middlesex Savings Bank:
1All accounts subject to approval. This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Individuals should consult with a tax or legal professional regarding their individual situation.

Middlesex Financial Group:
2Check the background of this investment professional on FINRA's BrokerCheck »

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Investors should consult with a tax or legal professional regarding their individual situation.
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The financial advisors of Middlesex Financial Group offer securities and advisory services through Commonwealth Financial Network®, member FINRA/SIPC, a Registered Investment Adviser.

Middlesex Financial Group is not a registered broker-dealer or Registered Investment Adviser. Middlesex Financial Group and Commonwealth are separate and unaffiliated entities of one another. Fixed insurance products and services offered by Middlesex Financial Group are separate and unrelated to Commonwealth Financial Network.

3 According to the Motley Fool the average salary of someone between the ages of 20 and 30 is $47,000. 
by Middlesex Savings Bank