As soon as you start working, you should start some type of retirement savings. Many employers offer some type of 401k program, but you can also look to a financial institution and open an Individual Retirement Account (IRA). Start building a solid credit history (your future self will thank you) and have a plan in place to pay off outstanding debt.
Start contributing more towards your retirement accounts anytime you receive a raise. Plan for the future by creating emergency savings for use in the event of unexpected unemployment or emergency. If and when you’re ready, buy a home.
At this point in your life, try to maximize the contributions you are making towards your retirement accounts. It may also be a good point to convert to a Roth account. Reach out to a professional who will be able to help you make the best decisions regarding your finances.
Once you reach the age of 50, you can start making ‘catch-up’ contributions. This means you can add extra money to your retirement accounts. Make a focused effort on getting as much debt as possible paid off so you don’t need to use your savings in retirement.
Start planning your post-retirement budget. Remember that you will most likely be living on a fixed income and may need to make some modifications in your lifestyle to accommodate this change. Keep taking advantage of ‘catch-up’ contributions as you approach retirement. Don’t forget to take a look as your estate plan during this planning as well.
Disclaimer: This article is intended to be a helpful starting point and not as legal advice. As every situation is different, speak to a financial professional with specific questions regarding retirement planning.