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Retirement Savings by Age 

Home Blog Retirement Savings by Age 

Posted On: September 23, 2021 by Peoples Bank of Kankakee County in: Retirement Saving

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At any age, you should be saving for retirement - yes, even when you’re 20. This can mean more than just putting a little money into your employer's 401(k) plan. It’s important to think about all the expenses you will have in the future and how you will afford them. Therefore, we wanted to share some information on how you should save for retirement based off your age. Read on to learn more!  

Twenties  

This age is becoming more in touch with finances and investing. Different apps allow you to invest in stocks and make money over time. Getting in on these investments at this age is a good idea, as it gives you ample time to learn more about this environment and change things as you grow. An advisor can help you learn about investing while also teaching you about other options such as CDs or IRAs.  

You’ll also want to make sure you are investing as much into your 401(k) as your employer is matching. This will give you the biggest bang for your buck. It's easier to save for retirement when you're young and may have fewer responsibilities, so take this time to really learn about different retirement options. One rule of thumb is to save 10% to 15% of your pay for retirement.  

Thirties  

At 30, you could try to strive to have one time your current salary in savings and two times your salary by age 35. By the time retirement comes around at 67, you should have 10 times your final salary saved. While this seems like a lot, don’t panic. Try to work towards saving what is practical for you. Aim to save 15% of your salary for retirement — or start with a percentage that’s manageable for your budget and increase by 1% each year until you reach 15%.  

At this age, you’ll want to ramp up your 401(k) contributions and start thinking about other costs you need to save for such as a kid’s college fund. Keep padding your emergency fund, too. Shoot for enough to cover six months of essential expenses.  

Forties  

At 40, you should aim to save 3 times your salary. When you get a promotion or new job, try to put more money into your retirement accounts. You should also really be working on getting rid of any final debts, as those payments can be put towards retirement as well.   

Fund your 401(k) up to the maximum limit. For someone under age 50, that’s $19,500 in 2020. Even a 1 percent increase in your contribution can seriously improve your nest egg and have only a small effect on your paycheck.  

Fifties  

You should work to have 5 times your income saved. Keep in mind that everyone will need a different amount saved based on how they want to live after retirement. This will be based off your income, planned retirement age and the kind of lifestyle you want to have in retirement. If you are just starting to take a serious look at your retirement at this age, be sure to see if the 20s-40s advice has already been completed by you or if you need to work on finishing those goals first.  

We want you to be prepared for the future. Be sure to talk to a financial advisor so you are fully aware of your savings options. Peoples Bank of Kankakee County offers different retirement options to fit any need - we’re happy to help you save!  

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What You Need to Know about Overdrafts and Overdraft Fees

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

  1. We have standard overdraft practices that are available after your account has been open for 30 days and as long as you maintain your account in good standing.
  2. We also offer an overdraft protection plan, Overdraft Protection Sweep, a link to a savings account.  It may be less expensive than our standard overdraft practices. To learn more, ask us about this plan.

This notice explains our standard overdraft practices.

 

What are the standard overdraft practices that come with my account?

After your account has been open for 30 days and as long as you maintain your account in good standing, we do authorize and pay overdrafts for the following types of transactions:

  • Checks and other transactions made using your checking account number
  • Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

  • ATM transactions
  • Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

 

What fees will I be charged if Peoples Bank of Kankakee County pays my overdraft?

Under our standard overdraft practices:

  • We will charge you a fee of up to $30 each time we pay an overdraft.
  • The maximum daily overdraft fee per presentment or item paid using the Overdraft Reserve Program is $150.00 per day.
  • No per item handling fee will be charged on de minimis overdrafts. De minimis overdraft for this policy means transactions that overdraw your account by $30 or less.
  • There is an overdraft fee of $5 per day that will be charged beginning the 4th consecutive business day your account is overdrawn.

 

Nonsufficient funds (NSF) fees - if an item drafted by you (such as a check) or a transaction you set up (such as a preauthorized transfer) is presented for payment in an amount that is more than the amount of money in your account and we decide not to pay the item or transaction, you agree that we can charge you an NSF fee for returning the payment. Be aware that such an item or payment may be presented multiple times by the merchant or other payee until it is paid, and that we do not monitor or control the number of times a transaction is presented for payment. You agree that we may charge you an NSF fee each time a payment is presented if the amount of money in your account is not sufficient to cover the payment, regardless of the number of times the payment is presented.

PAYMENT ORDER OF ITEMS - The law permits us to pay items drawn on your account in any order (for purposes of this section "items" means checks, orders and electronic transactions). To assist you in handling your account with us, we are providing you with the following information regarding how we process those items. When processing checks and orders drawn on your account our policy is to pay lower numbered checks and orders in numerical sequence, but electronic transactions are paid first in the order received. The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. There is no policy that is favorable in every instance.  If the smallest items are paid first, you may have fewer NSF or overdraft fees, but the largest, and perhaps more important items (such as rent or mortgage payments) might not be paid. However, if the largest items are paid first, your most important items might be paid but it may increase the overdraft or NSF fees if funds are not available to pay all of the items. We think our policy attains a reasonable balance between minimizing additional costs to you and paying your more important items. We encourage you to make careful records and practice good account management. This will help you to avoid creating items without sufficient funds and incurring the resulting fees.

 

What if I want Peoples Bank of Kankakee County to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions after your account has been open for 30 days, you may opt in.    

You have an ongoing right to change this consent at any time. If your overdraft privilege has been revoked for any reason, the opt-in or opt-out selection may not apply. Please contact your nearest office for more information.

 

Alternate ways to Opt In/Out or make changes:

  • By Phone.   Our Customer Care Representatives can be reached at 815-936-7600.
  • By Mail.   Peoples Bank of Kankakee County, 333 E. Court Street, Kankakee, IL 60901
  • In Person.  Please visit your local office and ask a representative to help you decide which plan is best for you.