This series discusses how to save for retirement during each decade, along with the hurdles you may face at different stages of life. Any time is a great time to start saving for retirement – just start! If you’re in your 20’s, we recommend checking out Getting Ready for Retirement: In Your 20s. 

Saving for Retirement in Your 30s

If you’re in your 30s, your experience in the workforce, and your finances, have helped you see the importance of saving for retirement. You may still be planning on working for a few more decades, but you also realize the importance of taking advantage of the time you have now. A lot of life’s big decisions can happen in your 30s – buying a home or starting a family – that should be taken into consideration when saving.

Here are four savings tips you can do now to help with retirement later:
 

1. Ramp Up Your 20s Savings

You may have gotten a raise, a promotion, or a higher paying job in the last decade – make sure some of that increased income goes towards your retirement savings. In Getting Ready for Retirement: In Your 20s, we discussed investing in your 401(k), paying off high-interest debts, and building your emergency fund. Continue to prioritize these and add to them if possible.
 

2. Open an Individual Retirement Account (IRA)

Opening an IRA is a great way to supplement your savings if you’ve only been investing in your 401(k) so far. Unlike most investments, IRA contributions may be tax-deductible and will grow either tax-deferred or tax-free depending on the type of IRA you choose.

Spectrum Credit Union offers both Traditional and Roth IRAs in a liquid savings plan.
 

3. Keep Retirement Money Separate

In Getting Ready for Retirement: In Your 20s, we recommended building an emergency fund for when life happens and setting S.M.A.R.T. goals to help you create attainable financial plans. These two points are key in making sure you don’t have to tap into your retirement. If you do go into those accounts, like an IRA or Roth, not only will you not be giving the funds time to compound, you may also receive withdrawal penalty fees for taking your money out too soon.
 

4. If You Have Kids – Start a 529 Plan

If your retirement funds are in good shape, opening a 529 plan to save for your children’s education is a smart move. Not only will you keep your retirement money separate, but by planning for their education early, you can avoid having to tap your savings for their needs later on.

If you’re looking for a savings account for your kids that can be used beyond higher education, we recommend our MySavings account. At 7.00% APY on accounts up to $1,000, this is a great opportunity to help your kids see the benefits of compound interest.
 

With both experience and time on your side, your 30s is the time to really save for retirement. It may still be a few decades away, but just like in your 20s, the more you save now the more it will be worth later. Your stress-free retirement will thank you for it.