Effective retirement planning is not a one-and-done task—it evolves with each decade of your life. By taking age-appropriate steps now, you’ll build confidence and momentum toward a secure future. Here’s how to plan for retirement in your 20s, 30s–40s, 50s, and 60s and beyond.
- Getting Started: Your 20s and Early Career
- Build healthy habits – Treat retirement savings like a recurring “bill.” Even $50 per paycheck adds up over time.
- Open an Individual Retirement Account (IRA) – IRAs offer tax advantages that help your money grow. Learn more about IRAs at the IRS website.
- Automate contributions – Enroll in Online Banking and schedule automatic transfers into your Savings Account so you save before spending.
- Pay down high-interest debt – Eliminating credit-card balances frees up cash flow for investing.
- Building Momentum: Your 30s and 40s
- Maximize tax-advantaged plans – If you have access to a 401(k) or similar through work, contribute at least enough to earn any employer match.
- Increase your savings rate – Aim to have roughly three times your annual salary saved by age 40 and six times by age 50. Target amounts by age can guide you.
- Diversify your portfolio – Move from an all-equity stance toward a balanced mix of stocks and bonds as you get closer to retirement.
- Use our Financial Calculators – Model scenarios for IRAs, CDs, or brokerage accounts.
- Catch-Up and Consolidation: Your 50s
- Leverage catch-up contributions – Once you turn 50, you can contribute an extra amount to IRAs and employer plans, boosting your annual savings limit.
- Consolidate retirement accounts – Roll old 401(k)s into an IRA at Farmers State Bank with our IRA assistance service.
- Pay off remaining high-cost debt – Housing and auto loans should ideally be paid down before full retirement.
- Refine your income plan – Estimate how catch-up contributions accelerate your timeline using our Financial Calculators.
- Transition and Preservation: Your 60s and Beyond
- Decide your Social Security strategy – You can begin benefits as early as age 62, but full retirement age varies by birth year. Delaying benefits up to age 70 increases your monthly check. Learn more at the Social Security Administration.
- Plan for Required Minimum Distributions (RMDs) – Starting at age 73, you must take annual RMDs from traditional IRAs. Work with your tax advisor to optimize timing.
- Shift to income-focused investments – Increase bond allocations and consider annuity options or short-term CDs for stable income.
- Review and adjust – Meet with your tax or legal advisor to ensure beneficiary designations, wills, and powers of attorney are current.
Next Steps
- Stop by our branch or call us at (641) 439-2221 to discuss your IRA options and get assistance with retirement account setup.
- Explore more articles in our Learn section
By taking these tailored steps at each life stage, you’ll stay on track for a retirement that’s as comfortable and worry-free as possible. Start today to secure tomorrow.
