Healthy financial habits can be built at any age. Read on for things to think about at each stage of life.
Key financial milestones and actions by age
There’s no one correct path to financial success — everyone’s journey looks different — but it can help to keep these benchmarks in mind:
Age range | Key financial goals | Recommended actions |
|---|---|---|
20s | Build financial foundation | Establish credit Begin retirement savings Start to consider investing |
30s | Strengthen financial stability | Meet with a financial advisor Pay down high-interest debt Save for life goals and emergencies |
40s | Maximize earnings and investments | Consider rebalancing investments Increase retirement contributions Evaluate an estate plan |
50s | Prepare for retirement | Pay off mortgage and loans Use catch-up contributions Assess retirement goals |
60s | Transition to retirement | Determine annual withdrawal needs Claim Social Security Consider adjusting investment allocation |
70s+ | Maintain financial security | Take required minimum distributions Simplify accounts Review estate and tax plans |
Interested in a savings benchmark by age, too? Here’s how it breaks down by decade.
In your 20s: Building your financial foundation
Now’s time to think about first steps such as: building credit, establishing good saving habits by starting an emergency fund and considering investing. With Ally Invest’s Robo Portfolio, you can start with just $100.
Simple actions can build momentum. You may want to set up a direct deposit that automatically moves a portion of each paycheck into a high-yield savings account. The smart savings tools in an Ally Bank Savings Account can help you visualize your goals and strengthen saving habits.
Additional resources:
In your 30s: Growing wealth and balancing life priorities
As new priorities emerge in your 30s — buying a home, raising a family or building toward retirement — financial planning becomes a balancing act. Keeping your debt-to-income (DTI) ratio in a healthy range and continuing to build your emergency fund can help keep you well-positioned for any major financial milestones to come. Speaking of milestones, while it’s never too early, your 30s could be a good time to meet a financial advisor.
Automation and tracking tools become your best allies in this decade. Budget-tracking tools like spending buckets in an Ally Bank Spending Account can help you stay in control of regular expenses, while automating savings and retirement contributions helps keep your progress on track in the background as you work toward multiple goals.
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In your 40s: Maximizing earnings and investments
This decade may be your peak earning years — an ideal time to consider maximizing both your income and your long-term investments. If you haven’t already, consider to increasing your retirement contributions toward the annual maximum.
Your 40s are also the perfect moment for a thorough mid-life financial check-in. Review your investment portfolio mix, revisit your insurance coverage and refine your long-term plans. If you haven't met with an advisor yet, now could be a good time to start to evaluate your trajectory and revamp your strategy so you can make the most of these high-impact years.
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In your 50s: Preparing for retirement
This is when retirement planning moves from someday to a near-term priority. Once you turn 50, you can take advantage of catch-up contributions in IRAs and 401(k)s, which allow you to save more than the standard annual limits. (It is important to note that catch-up contributions made 12/31/25 and prior can be made to either a traditional or Roth IRA, but contributions 1/1/26 and after must be through a Roth IRA. Make sure to check the IRS website for up-to-date allowances and restrictions.) Additionally, this could be a good time to try reducing debt so your future retirement income isn’t weighed down by any lingering balances.
Assess your retirement goals with realism — look at your current savings and expected expenses to determine whether your timeline still makes sense. If not, you can adjust now while there’s time to make meaningful changes.
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In your 60s: Transitioning to retirement
At this point you’re probably thinking about transitioning to retirement (you’ve earned it!). Review your retirement accounts and consider a withdrawal plan that balances your lifestyle goals with long-term preservation of assets. Make sure to take into account your planned timeline for Social Security and future healthcare considerations. You can explore tax-efficient strategies — such as coordinating withdrawals across taxable and tax-deferred accounts — and fine-tune your income plan.
Additional resources:
In your 70s and beyond: Maintaining financial security and legacy
In your 70s and beyond, the priority shifts to sustaining income while preserving the assets you've built over a lifetime. Required minimum distributions (RMDs) become an important part of your yearly financial routine, so make sure you understand how and when they apply. At this point, it may be a good idea to ensure your estate plan is up to date with your wishes.
This stage is also a good time to simplify your financial life. Consider consolidating accounts, streamlining investments and automating recurring payments. Maintaining clarity and organization will provide peace of mind for both you and your loved ones.
Additional resource:
Financial planning strategies that can work at any age
At every stage of life, consistency is what keeps you moving forward, and adaptability is what helps you navigate the curveballs.
Foundational habits that work at any age:
Track spending to stay aligned with your budget
Review your investing accounts
Review your goals, net worth and progress annually
How to create your own financial plan by age
The best time to start financial planning is now, no matter your age. You can create a plan with these four simple steps:
Identify your current life stage and key goals
Estimate your current savings, debt and expenses
Prioritize your short-, mid- and long-term goals so you know where to focus first
Adjust or set up your retirement contributions according to your age bracket
Make it a habit to review your plan every year and update it as your income, family needs, risk tolerance or long-term goals change. A financial plan works best when it grows with you.
It’s never too late (or too early) to plan your financial future
Everyone’s timeline looks different. What matters most isn’t perfect timing but consistent action. Try taking one small step today: open a savings account, review your goals or start automating a monthly transfer. Then, build from there to set yourself on a strong financial path.
