back

Saving for retirement at 30 can be difficult. Use these tips to help you navigate any competing financial responsibilities life throws at you.

It's a funny quirk of life that the more money you have, the more financial obligations you have to manage. Even if your career is really starting to take off as you hit your 30s, you've also probably got new responsibilities like serious relationships, children, a new home … any of that ring a bell? 

Planning for retirement can easily slip down your priority list, but now's the time to push it back up to the top. Here are five easy tips to show you that saving for retirement at 30 or beyond is completely manageable, even if you have other financial commitments.

Saving for retirement at 30 can become a more formal part of your financial planning than it was when you were first out of university. Your budget probably already takes into account rent or mortgage payments, the costs associated with having children or pets, and other recurring financial responsibilities. So why not include your retirement contributions as one of your monthly expenses? That way, no matter how hectic your life gets, your retirement savings will always be quietly building in the background.

In your 30s, you might feel like you're finally getting the hang of adulthood. But even though you probably think about doing laundry more often than you think about eating ice cream, don't forget that you're still young in terms of your investments. With about 30 years until retirement, your investments still have the opportunity for long-term growth, so you might want to consider an aggressive approach with your investment portfolio.

When you invest over a longer period of time, you might see some market fluctuation. Don't be alarmed. Instead, remind yourself of your long-term goals and think of market dips as buying opportunities. Your regular monthly contributions are purchasing your investments "on sale" when the markets dip. This is known as "dollar-cost averaging," because it lowers the average cost of the stocks you invest in. Ultimately though, a great advisor can help guide you through the times when you should take advantage of those dips, or take a different approach.

Job changes can be tough on employer-based retirement plans like group registered retirement savings plans (RRSPs) and registered employee stock ownership plans (ESOPs). As you pursue new employment opportunities, consider your options for leaving employer-based plans carefully. Cashing out an RRSP can trigger an income tax bill unless you have the option to transfer your RRSP investments to a new retirement plan with a new employer or a financial institution, so make sure you have another option lined up.

If your career path means you're aiming to climb the ladder at one company, keep an eye on your company stock. After all, it is possible to have too much of a good thing. If your retirement portfolio becomes too heavily weighted in your employer's company stock, talk to your financial advisor about the best way to bring balance to your savings.

Becoming more established in your career can mean rising salaries and better bonuses, which is good news for your retirement plans. Instead of rushing out to make a big-ticket purchase, consider splitting your year-end bonuses or other sudden windfalls into three parts: saving, paying down debt, and spending. The same goes for any money budgeted for former expenses, like now-paid off credit cards, or money for daycare once your child has started school.