How to plan & save for retirement in your 30s: 6 proven methods

Now that you're in your 30s, you likely have several years of work behind you and increased earning potential ahead. Now is the ideal time to start or accelerate smart saving practices you can use for years to come. Saving now gives your assets more time to grow into the nest egg you'll need for a comfortable, fulfilling life.

Here's what you can do to save for retirement in your 30s—even if you have competing financial priorities.

Our guideline for someone who's 30 and expects to retire in their 60s or later is to have at least one year's income saved. The recommended benchmark for retirement savings by age 40 goes up to three years of your annual pay.

Let's use the Bureau of Labor Statistics' national median salary for workers age 25–34 as an example. If you make $58,500 a year, the general guideline suggests you might aim to have $58,500 in retirement savings by the time you're 30 and $175,500 saved by the end of your 30s.

Keep in mind that estimating your retirement savings by age involves a lot of factors that are personal to you. The guideline isn't the universal goal for everyone. In fact, according to the Federal Reserve, the national average retirement savings for people in their 30s actually ranges from $49,130 to $141,520 with the median (the midpoint) being between $18,880 and $45,000.

People in their 30s often have competing financial interests, so it's understandable if you don't feel on track for retirement. Use recommendations and averages as general guideposts as you continue saving for the retirement you want. It's not easy to estimate how much you'll need for retirement. But even in your 30s, you can sketch out long-term goals, so you have an idea to start working toward and measuring against.

Curious about the savings milestones for other decades? Check out our comprehensive guide on retirement savings by age.

When it comes to saving for retirement, time is your greatest ally. Every dollar you invest in your 30s will be worth more in retirement than a dollar you contribute later in life. Why? Because you'll benefit from compounding returns.

You don't have to wait until you can save a lot to start investing for retirement. Even a small amount at age 30 can go a long way. That's because your money can grow—and then the growth itself can grow, too. It's the power of reinvesting, and it adds up over time.

This chart shows how powerful compounding returns over time can be:

In this example, a person who starts with a smaller amount at age 30 and contributes that amount steadily over 37 years can turn a total of $133,200 in contributions into $577,214.65 in retirement money. Someone who waits until age 39 but puts in more per month would still end up earning less, turning a total of $168,000 in contributions into $484,186.15.¹

Reaching a retirement savings goal requires more than stashing money in a standard savings account. Investing for retirement can put you on a long-term course to achieve the post-career life you envision. But in addition to knowing what kinds of retirement accounts to use, you'll want to factor contributions into your budget and then automate them so you don't forget to put away money steadily.

Usually, the best option to maximize first is a tax-advantaged retirement account. These options give you benefits that everyday savings and even brokerage accounts don't. Individual and employer retirement accounts are designed for you to deposit money and have tax-deferred growth until the dollars are withdrawn, after age 59½ without penalty.

Here are the most common types of retirement accounts you may be eligible to contribute to:

If you work for an employer that offers a retirement plan, it's usually the most logical place to start. Depending on the type of employer, the plan may have a different name and slightly different rules.

• 401(k) plans: Offered by privately held and publicly traded companies
• 403(b) plans: Offered by public schools, churches and certain nonprofits
• 457(b) plans: Offered through state and local governments and certain nonprofits
• Thrift Savings Plans: Offered by the Federal government

The key benefits of contributing to employer-sponsored retirement plans:

• Automatic deductions from your paycheck ensure you contribute consistently.
• Many employers will match a portion of your contributions, which is essentially free money.
• Some employers make discretionary contributions that aren't tied to how much you contribute.
• High contribution limits. You can contribute up to $23,500 in 2025 to any of these plans.

Consider starting with an amount that feels affordable. It's wise to contribute at least enough to get the employer match as a start. As you get used to setting aside money, set a goal to bump up your savings rate each year to build your retirement fund even more.

If you work for a small business, your employer might offer a type of plan called a SEP IRA or SIMPLE IRA. These plans are less common, less well known and have different contribution limits. Still, it can be smart to enroll in them if they're available to you. Both allow your employer to make contributions on your behalf. A SIMPLE IRA allows employees to contribute as well—up to $16,500 in 2025.

All employer plans allow traditional (pre-tax) contributions. Some also allow Roth (after-tax) contributions, such as a Roth 401(k).

Are you self-employed? See the specific options available to you.

IRAs can be opened by anyone with earned income at any financial institution that offers them. They can help if you don't have a workplace plan, and you also can use them to save more if you do have a workplace plan but want to save beyond its limits or choose investments it doesn't offer.

The two main types of IRAs are traditional and Roth:

• Traditional IRAs let you invest money, potentially lowering your taxable income today. Then, when you start withdrawing in retirement (after age 59½), the money is taxed as income. If you expect to be in a lower tax bracket down the road, this approach could work in your favor.
• Roth IRAs are funded with money you've already paid taxes on. The big perk? Your money grows tax-free, and qualified withdrawals, after age 59½, come out tax-free, too. Plus, you can access your contributions anytime without penalty, giving you added flexibility along the way.

The annual IRA contribution limit if you're under age 50 is $7,000 in 2025 whether you have one IRA or multiple IRAs. And if you're married but one of you doesn't work, spousal IRA contributions can help you both save for the future.

The primary purpose of a HSA isn't to save for retirement. People who have a high-deductible health insurance plan use HSAs to contribute pre-tax dollars, then use them to pay for health-related expenses without incurring taxes. However, after reaching age 65, you can take money out of an HSA for any purpose—such as retirement income—and pay regular income taxes on your accumulated contributions and savings but not incur any other tax penalties.

Creating and sticking to a monthly budget can help you consistently build your retirement savings. Start by reviewing your spending habits or using an app that tracks where your money goes. See how well your spending aligns with your goals and values. Are there changes you'd like to make?

Following a budget doesn't mean slashing all discretionary spending. You're more likely to stick to your plan if you make room for things you enjoy, like going out for lunch, and things you care about, like donating to your church. Just be careful to avoid lifestyle creep, where your discretionary expenses keep rising with your income.

Use the "pay yourself first" strategy to make saving easier by allocating part of each paycheck to your retirement accounts. Automating contributions helps you avoid the temptation to spend that money. When you don't see it in your paycheck, it's almost like it doesn't exist.

The easiest way to do this is through a payroll deduction to your employer-sponsored plan or by setting up electronic deposits into an IRA or other account. Figure out what you can realistically and consistently contribute each month while keeping on top of your regular expenses.

What would happen if your car broke down, you got laid off, or you had to stop working while getting cancer treatment? To avoid dipping into your retirement savings or taking on high-interest debt, it's wise to have an emergency fund that can cover at least three months' worth of living expenses. Your employer might even offer an emergency savings account you can fund with payroll contributions.

Having life insurance with cash value also can help you stay on track for retirement during challenging times. It not only protects any dependents you may have, but it also gives you another tax-advantaged investment account you could tap if needed. Using life insurance cash value may be a better option than cutting back your retirement contributions or borrowing from your retirement account.

Another protective action to take for your future is having enough disability insurance. It works by preventing a total loss of income if you have an extended illness or injury. With that as backup support, you may not have to decrease or stop your contributions to your retirement.

Be sure to put any cash windfalls you receive to good use. If you get a tax refund or a year-end bonus, it's only natural to want to splurge on something fun. But you can use a portion of those funds to give your retirement account a one-time boost or add to your emergency fund. You might even find it easier to set aside this money because you weren't accounting for it in your budget. You can leap ahead on your long-term savings goals without sacrificing your existing lifestyle.

Saving money for retirement is foundational, but you'll need to invest to beat inflation and grow your net worth. Don't let investing intimidate you: You don't need to analyze stocks or follow the Nasdaq. Most people do best when they know just enough to make time-tested choices and don't try to beat the market.

Consider these investments as part of your overall retirement portfolio:

• Target-date funds contain a mix of stocks and bonds. They're more aggressive when you're younger and become more conservative as you approach your target retirement date. They can be a good set-it-and-forget-it option.
• Mutual funds and exchange-traded funds (ETFs) make it easy to build a diversified portfolio. These funds let you own a basket of securities through a single investment. Index funds and index ETFs aim to offer the same return as a broad index, like the S&P 500, short-term government securities or the total bond market.

Look for funds with low expense ratios. Investment expenses eat into your returns and drag down long-term performance.

Determining your risk tolerance can help you decide which investments will be most effective for your situation and goals. Everyone's risk tolerance is different, and you may not discover your true risk tolerance until you experience a volatile market or live through a recession.

In general, people in their 30s can afford to take on more risk. You have plenty of time to learn from your investment decisions, both good and bad. Your portfolio also has more time to benefit from long-term growth potential despite short-term market fluctuations.

Your risk tolerance may change over time. So will your perspective and priorities. As you get closer to retirement age, you may put more of your money in safer investments. Keep in mind that risk is always a factor with financial investments. But investing with an end goal in mind can help keep you on track.

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In the short run, your investments may change dramatically in value. These swings often cause emotional investing that scares people into selling when prices fall and inspires people to buy when prices rise. Following only your emotions doesn't usually lead to optimal investment outcomes.

When you're in your 30s, you may want to ride out these waves of investment volatility with your retirement savings, which has a long runway to bounce back. A rational, disciplined strategy—not an emotional, reactive one—will give you the best chance of success.

Saving and investing for retirement requires a lot of work upfront, but it doesn't have to be a chore. Take one step at a time, and eventually, you'll have your plan on autopilot—checking in periodically to make sure you're on course and increase contributions if you can. Of course, you can be more involved with your retirement investment strategy. But retirement accounts are designed for people at any investment level to easily store up money for decades until it's needed for your post-working years.

When getting started with retirement planning, consider working with a professional to make a roadmap based on your individual goals and values. With a Thrivent financial advisor by your side, you can create a customized financial plan for your future.

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¹ Hypothetical examples are for illustrative purposes. May not be representative of actual results.