Five Life Stages: Paths to Saving for Retirement


Through proper planning and saving, retirement can be something you look forward to rather than something you worry about.


Age of Majority (18–30)

Most adults begin to work and earn a steady income during these years. Although it’s the best time to begin saving for #retirement, most of us do not take advantage of it. Thanks to compounding interest, if you begin to save early, you’ll need to save less money over time than you would if you began to save at a later date.


Age of Responsibility (30–45)

During these years, work responsibilities and salaries usually increase. But personal responsibilities increase, too. For instance, you may get married, purchase your first home, and have children. Most people begin to consider saving for retirement during this stage, but it can be difficult at this point in life to make consistent contributions to a retirement fund. Though other financial obligations may seem more pressing, contributing to a retirement plan should remain a priority.


Age of Maturity (45–55)

You are at the peak of your career and earning potential, but your expenses can also be great. College tuition, divorces, and career changes all typically occur during this stage. It’s a good time to review your retirement goals and ensure that you are on track to meet them. If you’re not, it may be time to change your strategy.


Age of Reflection (55–65)

While some expenses may be dwindling, other costs—such as health-related expenses—may be on the rise. You may also have to contribute money to support your own parents. Now is the time to focus on your retirement strategy and goals and review your investment risk strategy. Although a high-risk investment vehicle may have been appropriate during your 20s, at this stage, it may be wise to choose something more conservative.


Age of Tranquility (65+)

Today, many people work past age 65 in order to continue saving for retirement. Before deciding to retire, consider whether your retirement savings are sufficient to support you, or if you will have to make lifestyle changes. Thanks to all of the saving and planning you’ve been doing, however, you may be able to enter retirement confidently and begin enjoying your golden years.


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This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer. © Copyright 2020 Commonwealth Financial Network®. Presented by Sara Romaine. Sara Romaine is a financial advisor at Blue Hills Wealth Management. BHWM is located at 300 Crown Colony Drive, Quincy MA. Sara can be reached at 617-471-6800 or sara@bluehillswm.com. Securities and advisory services offered through Commonwealth Financial Network, Member, FINRA/SIPC a registered investment advisor. Fixed insurance products and services and College Planning services offered by Blue Hills Wealth Management and College Funding Solutions are separate and unrelated to Commonwealth.


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