Keep saving - Even with
competing Priorities

Saving for Retirement In Your 30s–40s

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In your 30s and 40s, competing priorities can make retirement savings easy to put off. Continuing to save through your workplace 401(k) can help keep your retirement goals on track while taking advantage of the long-term benefits of tax-deferred growth.

THE POWER OF TIME AND TAX DEFERRAL

Account balance by starting age

The longer your money stays invested, the more opportunity it has to grow. Select a starting age to compare projected retirement balances in a tax-deferred account and a taxable account.

Starting at age 25

  • Tax-deferred account: $5,000 per year contribution; 6% annual return
  • Taxable account: $5,000 per year contribution taxed at 22%; 6% annual return

    Source: PGIM. Taxable account assumes federal marginal tax rate of 22% based on $55,000 income.

    The combination of time and tax-deferred growth can significantly increase retirement savings over the long term.
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