Retirement Planning at 30: How to Build a Savings Fund Early

Why is 30 the perfect age to start?

At age 30, you still have more than 35 years to let compound interest work in your favor. Someone who invests $500 a month starting at age 30 with an 8% return will have more than $900,000 by age 65.

Maximize your 401(k)

In 2024, you can contribute up to $23,000 annually to a 401(k). Always contribute at least enough to get the maximum employer contribution; that's an instant 50-100% return on that money.

Open a Roth IRA

A Roth IRA allows your money to grow tax-free. You contribute after-tax money, but you don't pay taxes on withdrawals in retirement. The contribution limit is $7,000 in 2024.

The Simple Formula for Retirement

Financial planners suggest accumulating 25 times your annual expenses by the time you retire. If you spend $60,000 a year, aim for a $1.5 million portfolio. Use our retirement calculator to find your specific figure.