October is National Retirement Security Month, and for many Iowans, it hits close to home. A recent survey found that nearly half of Iowa residents feel unprepared for retirement. If you’re in your 30s or turning 40 soon, you might be wondering: Am I saving enough?
The good news? You’re not too late, and small steps can make a big impact. Let’s take a look at how much you should have saved by 40 and what to do if you’re behind.
Quick Links
- How Much Should You Have Saved by Age 40?
- Smart 401(k) Moves to Make Before Year-End
- Important 401(k) Deadlines to Know
- Explore Retirement Options at ASB
- Helpful Resources
How Much Should You Have Saved by Age 40?
There’s no one-size-fits-all answer, but most experts recommend saving about two to three times your annual salary by the time you hit 40.
Here’s a quick example:
| Annual Salary | Target Savings by Age 40 |
|---|---|
|
$50,000 |
$100,000–$150,000 |
|
$60,000 |
$120,000–$180,000 |
|
$75,000 |
$150,000–$225,000 |
But don’t panic if you’re not there yet. Life happens, and what matters most is taking action now.
Smart 401(k) Moves to Make Before Year-End
Your 401(k) is one of the most powerful tools for long-term savings. And October is a great time to check in on your contributions before the calendar flips. Check out the annual contribution limits for 2025 below.
2025 401(k) Contribution Limits:
- Under 50: Up to $23,500
- Age 50+: Add a $7,500 catch-up for a total of $31,000
- Ages 60–63: Eligible for an additional “super” catch-up of up to $11,250 (thanks to the SECURE 2.0 Act)
Even small increases to your contribution now can grow significantly thanks to compound interest.
Tip: If your employer offers a match, make sure you’re contributing enough to get the full benefit — it’s free money!
Read This Next: Retirement Planning Made Easy: Tips for a Secure Future at Every Age
Important 401(k) Deadlines to Know
Keep these key dates in mind to avoid missing out:
- December 1, 2025: Deadline for Safe Harbor/auto-enroll notices (if applicable)
- December 31, 2025: Final day for employee contributions
- March 15, 2026: Employer contribution deadline (S-Corps/Partnerships, unless extended)
- April 15, 2026: Employer deadline for C-Corps and Sole Proprietorships
Missing these deadlines could mean missing opportunities to grow your retirement nest egg.
Explore Retirement Options at ASB
Not sure where to start? That’s where we come in. At American State Bank, we’re more than just a place to deposit your paycheck. We’re here to help you plan for your future and that includes retirement.
Here are a few simple ways we can help:
- Traditional and Roth IRAs — choose the retirement savings account that fits your needs
- Certificates of Deposit (CDs) — grow your savings with fixed-rate security
- One-on-One Support — our local bankers are happy to walk you through your options
We take pride in offering friendly, personalized service, whether you’re opening your first account or fine-tuning your retirement strategy.
Let’s talk about your goals — online, over the phone, or at your nearest ASB location.
Read Next: IRA Insights: Choosing Between Roth and Traditional
Helpful Resources
- Retirement Planning Tools – American State Bank Financial Center
- IRS Contribution Limits (for 401(k), IRA, etc.)
- Catch-Up Contributions Explained – Investopedia
- Social Security Retirement Estimator
Let’s Build Your Future Together
Whether you’re ahead of the game or just getting started, you’re not alone and you’re not behind. National Retirement Security Month is the perfect time to take a deep breath, check in on your progress, and make your next move.
Ready to get started?
Visit a branch, explore your options online, or connect with one of our friendly team members. Let’s work together to build a retirement plan that works for you.
October 7, 2025 by American State Bank
