Retirement Planning by Decade: An Advisory Guide
In June 2025 Charles Schwab published a piece called “Retirement Planning by the Decade: A Savings Guide” which looks at retirement from the perspective of different age groups by decade. Using this report and other resources, Courier Capital has developed an Advisory Guide that will address the issues that should be taken into consideration whether someone is just starting out or is nearing, or even in, retirement. As aways, Courier Capital stands ready to help you achieve all your financial goals.
Retirement Planning in Your 20s: Building a Strong Foundation
Why Your 20s Matter
Your 20s are often about career beginnings, student loans, and finding financial independence. But this decade is also the most powerful time to start building wealth. You have something older investors can never buy back — time. Every dollar invested now has decades to grow through compound interest, making early action invaluable.
Core Principles to Focus On
- Start Early, Start Small: Even modest contributions grow substantially over 40+ years.
- Leverage Employer Benefits: Contribute enough to capture full 401(k) matches.
- Balance Debt with Saving: Prioritize high-interest debt while contributing something to retirement.
- Build Financial Habits: Budgeting, automating savings, and monitoring credit.
Action Steps
- Open and fund a retirement account (401(k), Roth IRA).
- Automate contributions (5–10% of income to start).
- Build an emergency fund (3–6 months expenses).
- Pay down high-interest debt.
- Educate yourself on personal finance.
Benchmarks to Aim For*
- Save at least 10–15% of income toward retirement.
- By 30, aim for ~1x your salary saved.
- Portfolio: 80–90% equities, 10–20% bonds.
Quick Recap
☑ Open and fund a retirement account
☑ Automate contributions and increase with raises
☑ Build emergency savings
☑ Pay down high-interest debt
☑ Develop financial literacy habits
Retirement Planning in Your 30s: Building Momentum
Why Your 30s Matter
Your 30s are a pivotal decade. As income rises, financial responsibilities grow — from homeownership to family. This is the time to build momentum, balancing multiple goals while keeping retirement savings on track.
Core Principles to Focus On
- Increase Contributions: Work toward saving ~15% of income.
- Balance Multiple Goals: Retirement, home, family, debt.
- Stay Invested for Growth: Maintain stock-heavy portfolios but diversify.
- Avoid Lifestyle Inflation: Direct raises to savings first.
Action Steps
- Save at least 15% of income for retirement.
- Maximize employer plan contributions.
- Diversify with index or target-date funds.
- Start 529 plans if you have children.
- Build 6 months of emergency savings.
- Reduce debt strategically.
Benchmarks to Aim For*
- By 40, aim for ~3x your salary saved.
- Asset allocation: 70–80% equities, 20–30% bonds.
- Secure life/disability insurance.
- Have basic estate documents in place.
Quick Recap
☑ Save ~15% of income
☑ Max out employer match
☑ Diversify investments
☑ Build 3–6 months emergency savings
☑ Consider 529 plans
☑ Estate basics in place
Retirement Planning in Your 40s: Capitalizing on Peak Earning Years
Why Your 40s Matter
The 40s are peak earning years — a critical opportunity to accelerate savings, benchmark progress, and protect your financial future.
Core Principles to Focus On
- Maximize Momentum: Boost savings while income is high.
- Benchmark Progress: By 40, aim for 3x salary saved.
- Balance Growth with Stability: Reduce risk gradually.
- Protect Assets: Insurance, estate planning.
Action Steps
- Save ~15% of income toward retirement.
- Rebalance investments to add stability.
- Maintain 3–6 months emergency funds.
- Review life/disability insurance.
- Update wills, POAs, beneficiaries.
Benchmarks to Aim For*
- By 40: ~3x salary saved.
- By 50: ~6x salary saved.
- Asset allocation: 70–80% equities, 20–30% bonds.
Quick Recap
☑ Contribute ~15% of income
☑ Target 3x salary by 40
☑ Rebalance portfolio
☑ Maintain safety nets
☑ Review insurance & estate plans
Retirement Planning in Your 50s: Accelerating Toward the Finish Line
Why Your 50s Matter
The 50s are the 'catch-up decade.' Retirement is approaching, and maximizing savings now will define your comfort later. It's time to fine-tune strategy and prepare for the transition.
Core Principles to Focus On
- Use Catch-Up Contributions.
- Adjust Asset Mix toward preservation.
- Plan for Healthcare & Long-Term Care.
- Run the numbers on retirement readiness.
Action Steps
- Max out 401(k)/IRA plus catch-up.
- Reduce consumer and mortgage debt.
- Rebalance portfolio toward stability.
- Evaluate long-term care insurance.
- Project retirement income and expenses.
Benchmarks to Aim For*
- By 50: ~6x salary saved.
- By 60: ~8x salary saved.
- Asset allocation: ~60–70% equities, 30–40% bonds.
Quick Recap
☑ Max out contributions + catch-up
☑ Reduce or eliminate debt
☑ Plan healthcare & LTC
☑ Shift portfolio balance
☑ Aim for 6x salary by 50
Retirement Planning in Your 60s: Transitioning from Accumulation to Income
Why Your 60s Matter
The 60s are about transitioning into retirement. This decade focuses on income planning, Social Security, Medicare, and estate readiness.
Core Principles to Focus On
- Finalize retirement income plan.
- Make smart Social Security decisions.
- Plan for healthcare and Medicare.
- Create a withdrawal strategy.
- Review and update estate plans.
Action Steps
- Decide retirement age.
- Claim Social Security strategically (62–70).
- Enroll in Medicare at 65.
- Prepare for RMDs at 73.
- Adjust portfolio toward stability.
- Update wills, trusts, beneficiaries.
Benchmarks to Aim For*
- By 60: ~8x salary saved.
- By 67: ~10x salary saved.
- Average couple may need $315k+ for healthcare in retirement.
Quick Recap
☑ Decide retirement age
☑ Optimize Social Security
☑ Enroll in Medicare
☑ Develop withdrawal strategy
☑ Adjust portfolio mix
☑ Estate docs up to date
Retirement Planning in Your 70s and Beyond: Preserving Wealth and Living Comfortably
Why Your 70s and Beyond Matter
By your 70s, retirement is here. The focus is on managing withdrawals, preserving wealth, handling healthcare, and leaving a legacy.
Core Principles to Focus On
- Manage RMDs and taxes.
- Preserve principal.
- Plan for longevity.
- Budget for healthcare and LTC.
- Finalize estate and legacy planning.
Action Steps
- Begin RMDs at 73.
- Follow tax-efficient withdrawal order.
- Adjust portfolio to ~30–40% equities, 60–70% fixed income.
- Budget for rising healthcare costs.
- Review wills, trusts, beneficiaries.
- Consider charitable giving.
Benchmarks to Aim For*
- By 70s: ~10x salary saved.
- Average 401(k) balance ~ $200k (many fall short).
- Plan for 20–30 years of retirement income.
Quick Recap
☑ Take RMDs
☑ Use tax-efficient withdrawals
☑ Preserve principal with safer allocation
☑ Budget healthcare & LTC
☑ Keep estate docs updated
☑ Plan for longevity
References
Fidelity: https://www.fidelity.com/viewpoints/retirement/retirement-guidelines
Charles Schwab: https://www.schwab.com/learn/story/retirement-planning-by-decade-savings-guide
IRS: https://www.irs.gov/retirement-plans
SSA (Social Security Administration): https://www.ssa.gov/benefits/retirement
Medicare.gov: https://www.medicare.gov
SoFi: https://www.sofi.com/learn/content/asset-allocation-by-age
SmartAsset: https://smartasset.com/retirement
Investopedia: https://www.investopedia.com
AARP: https://www.aarp.org/money/estate-planning
*Benchmarks to aim for are based on general guidelines and not necessarily appropriate for every investor. Consideration of risk tolerance and investment goals are different for everyone and dependent on each individual situation. Consult with your advisor before making any investment decisions.
Courier Capital, LLC (“Courier Capital”) is an SEC registered investment adviser located in Buffalo, NY, Rochester, NY, Jamestown, NY and Pittsburgh PA. For information pertaining to the registration status of Courier Capital, as well as its fees and services, please refer to our disclosure statement as set forth on Form ADV, available upon request or via the Investment Advisor Public Disclosure Website(www.adviserinfo.sec.gov). The information contained herein should not be construed as personalized investment advice or a solicitation to buy or sell any security. Investing in the stock market involves risk of loss, including loss of principal invested, and may not be suitable for all investors. Past performance is no guarantee of future results. This material contains certain forward-looking statements which indicate future possibilities. Actual results may vary. Additionally, this material contains information derived from third party sources. Although we believe these sources to be reliable, we make no representation as to the accuracy of any information prepared by an unaffiliated third party incorporated herein, and take no responsibility therefore. All expressions of opinion reflect the judgement of the authors as the date of publication and are subject to change without prior notice. Investment products and services are not FDIC Insured, are not a deposit or bank guaranteed, are not insured by any Federal governmental agency, and are subject to investment risks, including possible loss of the principal invested.
