Aiming for Success: The Financial Milestones to Watch

Imagine landing your dream job by 29, buying your first home at 30, and hitting a six-figure salary by 35. Are these aspirations within reach, or merely wishful thinking? A recent survey by Empower, a retirement services provider, revealed Americans' target ages for significant financial milestones and shed light on a common theme: regret about delayed savings.

Empower surveyed around 1,000 Americans to establish ideal ages for achieving six life goals: saving for retirement, landing a dream job, earning six figures, buying a home, becoming debt-free, and retiring. Many participants expressed the desire to have started saving earlier, with a notable portion feeling behind on their financial journey.

Start Saving for Retirement by 27

Experts suggest initiating retirement savings at 27, though starting in your 20s is considered a robust move. Financial planner Andrew Herzog regrets not starting until he was 29. Catherine Collinson, CEO of the Transamerica Center for Retirement Studies, emphasizes that starting at 27 may already be a missed opportunity for many.

Today's younger generations seem to be getting the message. Research shows Gen Zers often start saving as early as 20, Millennials at 26, and even Gen Xers fall behind the curve by beginning at 30.

Dream Job? Keep Searching Beyond 29

With the average American changing jobs an astounding twelve times between 18 and 56, the notion of securing a dream career by age 29 may be unrealistic. Financial planner Randy Bruns highlights that placing a deadline on something as personal as one's career path can lead to discouragement.

He cites Colonel Sanders as a prime example, noting that success can come later in life, reinforcing the idea that dreaming big can happen at any age.

Home Buying Milestones Shifting to 30 and Beyond

The average age of first-time homebuyers has crept up to 38, thanks to soaring prices and mounting mortgage rates. What was once an attainable goal at 30 is now an uphill struggle for many. Daryl Fairweather, chief economist at Redfin, points out that while buying your first home by 30 isn't impossible, it increasingly requires careful planning and potentially some family aid.

Chasing Six Figures by 35 Is Ambitious

For most Americans, achieving a six-figure income by 35 appears aspirational. Federal data shows that the average full-time worker earns around $62,500 annually. However, those with advanced degrees often earn above six figures. Economist Lonnie Golden notes that while the ambition is commendable, many jobs will not yield such salaries until much later in one's career.

Path to Debt Freedom: Target Age 41

Understanding different types of debt is essential. While credit card debt can burden you, manageable mortgage debt could serve as a strategic asset. Financial experts encourage focusing on eliminating high-interest debt while recognizing that not all debt is detrimental. Sam Taube from NerdWallet suggests that approaching debt strategically may yield better long-term results.

Retirement Planning: 58 May Be Too Soon

Retirement aspirations can shift over time, with younger individuals aiming for earlier retirements while older generations plan for later years. The 2025 Schwab survey highlights that Gen Zers expect to retire at 62, while Gen Xers look toward 66. However, experts advise that retiring at 58 requires substantial savings or minimal living expenses after retirement.

In conclusion, while these age-specific goals can serve as useful benchmarks, the reality of financial success varies widely among individuals. The journey to financial freedom requires planning, patience, and flexibility.