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Mostly you won’t consider planning for retirement as an important thing because you have more time in the future. But the real fact is saving for retirement at 30 is better because the money in the retirement account compounds or accumulates more interest over time. The key is to allot enough time for retirement so that it will increase your savings. So at the age of 30, you need to give financial priority and save for retirement. 

Saving for retirement at 30 

The reason for saving at the age of 30 is, that the ideal amount to have saved for retirement will be equivalent to a year’s income. You need to consider several factors when it comes to saving for retirement. You need to account for all these details to determine how much you should save in your 30s. 

How saving for retirement at 30 can be done? 

It is at the age of 30, you will get married, have children, buy a house, or maybe carry debts. Along with them, you are about to save money for retirement. In order to retire comfortably, it is recommended to have a one-time current salary in savings and two times your salary by age 35. And when retirement comes, you should have 10 times your final salary saved. 

Get started

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If you didn’t start in your 20s, it is fine, you can now start. But if you have already started saving, but have no plans, then you should come up with one. Once you are able to see how much you can put aside your money from spending, then put that money into savings. Make sure to put some money in an emergency fund. 

If you have a retirement savings goal, find what you will need to live in retirement and calculate how much you need to put aside to achieve your goal. 

Plan a percentage

Many financial advisors will suggest starting with 15% of the money to save at the age of 30. The individuals should set aside approximately 15% of their gross annual salary towards retirement each year in order to retire by their late 60s. This amount will add up to a total of 10 times a single year’s gross income to spend throughout retirement. 

The ones who want to go on multiple vacations, or predict to have medical expenses can set more money aside. The amount you put towards retirement depends on the lifestyle of the individual. 

Manage Debt and savings

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Maybe you will think that you will not be able to save any money, because of your debts. But you can save money by finding a balance while paying it off. Make all your minimum payments on time. You can contribute to your 401(K) or other workplace retirement plan to capture the full amount of any matching dollars. 

If you have loans, even after paying the minimum loans, try to compare the interest rate on your debt. And so you can decide whether your next priority should be paying more than the minimum on remaining debts or investing additional dollars toward retirement. Also aim to save 15% of your pretax income toward retirement each year.  


This is a retirement account sponsored by the individual’s employer. Using the account to its full capacity can provide you with a good amount during your retirement. This is actually a great place to start your earnings because of the significant tax advantages. The money you contribute is made from pre-tax wages. The Internal revenue service (IRS) determines the limits to how much one can contribute to their 401(K). And if you are in your 30s, try to meet the maximum annual contribution limit each year as determined. 

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Depending on your yearly salary, this might fall short of the maximum 401(K) contribution limit. If you are not ready to contribute up to the current maximum limit, you can contribute just 8.3% of your annual salary. Each year you can increase the amount until the maximum limit is reached. The amount one contributes to their 401(K) should consider how much their employer is willing to match. Taking advantage of employer matching allows you to double the contributions made to the retirement account.

Maintain assets

Saving is not just enough, but you need to consider keeping assets for your retirement. Try to start investing by allocating 80% to 90% of assets. You need to stay focused on your goal during the volatility of the market. The equity market will rise and fall and although the fall will be tough, they are normal. 

Maintain a Balanced financial portfolio

People the age of 30s are in a great place to handle the volatility of the stock market because they can generally afford to risk more than someone who is close to the retirement age. Through their retirement accounts, they can invest in stocks and other financial products. They will be able to keep a portfolio of high-risk equities like individual stocks and still find a rate of return, as it will be balanced with a few lower-risk investments. 

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