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If you’re in your 30s, retirement probably feels like something that's far off in the future. However, the sooner you get started, the better. Investing in your 30s gives your money more time to grow through the compounding of interest. The additional savings can make a significant difference when you're ready to stop working.

Retirement planning doesn't have to be complicated, and even modest contributions can help you reach your goals when your money has decades to grow. Let's take a look at what it takes to get started, including setting goals, saving strategies, account options, and how to stay on track. Making smart decisions today will help make your golden years more comfortable and secure.

SET A CLEAR GOAL

The first step in how to start a retirement plan is to set a goal to work towards. Many financial experts recommend planning to replace 70-80% of your pre-retirement income annually. You won't have to replace all of it because some of your current expenses will likely be eliminated before you retire, like your mortgage.

Remember to account for inflation. Something that costs $1,000 today will cost significantly more in 30 years. You'll also need to take into account rising healthcare costs, which are increasing faster than other expenses. Thanks to advances in medical care, many people are living longer, which means your retirement savings may need to last 25-30 years.

Keep in mind that your goals may change over time, and that's completely normal. You might decide to retire earlier, work longer, work part-time, or downsize your lifestyle. The important thing is to get started so you can start growing your nest egg. You can always make adjustments if your goals change.

As your parents age, you may find yourself stepping into the new and unfamiliar role of caregiver. Whether you're helping manage appointments or making big decisions, it quickly becomes clear that financial planning for aging parents is just as important as supporting their emotional needs and coordinating daily care.

Planning ahead can help ease stress later and ensure your parents are fully supported. Here are six practical ways to prepare for the financial challenges of caregiving.

1. TALK OPENLY ABOUT FINANCES AND WISHES

It can be uncomfortable, but one of the most important things you can do to prepare for the future is to sit down with your parent to discuss:

• Their current income, savings, and benefits

• Monthly expenses and potential care costs

• Their preferences for long-term care and end-of-life decisions

These conversations are often easier when framed around planning, not a crisis. If multiple family members are involved, getting everyone on the same page early helps avoid future misunderstandings.

To start the discussion, look for a quiet, relaxed moment, like after a family meal. Let your parent know that you're coming from a place of love and support, not control. You could say, "I know these things can be tough to talk about, but I want to make sure we're prepared so that your wishes are respected and we can avoid surprises."

2. CREATE A CAREGIVING BUDGET

One of the most effective ways to manage the financial aspects of caregiving is to create a detailed budget. A written budget helps you plan ahead, avoid debt, and make informed decisions about your care options.

Common expenses for your budget may include:

• Prescription medications and medical supplies

• Home health aides or assisted living services

• Transportation and mobility modifications

• Grocery and utility costs

A budget doesn’t have to be complicated to be effective. You can use a spreadsheet, budget planner, or pen and paper. The most important thing is that you have a clear picture of your parents' monthly income and expenses. Don’t forget to check with your local credit union. They may offer free tools and consultations to help you stay organized.

You might also want to build a small emergency fund specifically for caregiving. Unexpected expenses, like a sudden hospital stay or home repair, can arise without warning. Setting aside even a few hundred dollars can reduce financial stress and help you respond quickly to unplanned costs.

Once you've created a budget, be sure to review it regularly. As your parents' health care needs change, the costs will also change.

3. UNDERSTAND WHAT INSURANCE AND GOVERNMENT PROGRAMS COVER

Paying for a parent's health care needs is often challenging. Thankfully, many government programs can help offset the expense.

Programs that many seniors qualify for include:

• Medicare and Medicaid may cover certain types of care or long-term services

• Veterans Affairs (VA) benefits, if applicable

• Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI)

A quick call to your local Area Agency on Aging can help you determine what’s available where you live. They offer free assistance to help you understand what programs your parent may qualify for and how to apply. They may also offer other valuable resources, like caregiver support groups, legal and financial planning workshops, and referrals to local nonprofit organizations that provide financial assistance for seniors.

4. PLAN FOR LEGAL AND ESTATE MATTERS

Ensuring your parents' legal affairs are in order can prevent confusion and protect your parents' wishes. It can also give you the authority to make important decisions on your parents' behalf.

Be sure to discuss your parents' current estate plan to understand their goals. If legal documents were created years ago, be sure to have them reviewed by an attorney to ensure that everything is current and that they still match your parents' needs and wishes.

Key documents you will need include:

• A will

• Durable power of attorney

• Health care proxy (medical power of attorney)

• Living will or advance directive

• A trust, if appropriate

Having these in place ensures that your parents' wishes are honored and their assets are protected. Be sure to store them in a safe and accessible place so you can easily access them if needed. Also, consider making extra copies of your parents' health insurance cards, Social Security information, and other important documentation to keep as backups.

5. PROTECT YOUR OWN FINANCIAL WELL-BEING

When determining how to financially care for aging parents, many people neglect their own finances. They may have to dip into their savings, work fewer hours, or even leave their jobs to devote all of their time to caregiving. This can have long-term consequences, like delayed retirement, increased debt, or difficulty covering everyday expenses.

To support your parent without putting your own financial future at risk, consider:

• Setting boundaries on out-of-pocket spending

• Opening a separate savings account for caregiving expenses

• Exploring flexible financial options like low-interest personal loans or home equity lines of credit, if needed

Our credit union team is here to help you balance your caregiving responsibilities with your personal financial goals. We can help you create a plan that works for you, your budget, and the loved one who depends on you.

6. USE YOUR CREDIT UNION AS A RESOURCE

We understand how complex and emotional caregiving can be. That’s why we offer more than just banking — we’re your partner in financial wellness. Whether you're looking for budgeting help, financial planning services, or guidance on setting up legal protections for your parent, we’re here to support you if you need help managing your elderly parent's finances.

START PREPARING WITH CONFIDENCE

Caring for an aging parent comes with challenges, but with the right planning, it can also be a deeply rewarding experience. By taking steps now—like organizing finances, setting up legal protections, and exploring available resources—you can reduce stress and feel more confident about the road ahead.

When you’re ready, we’re here to help you move forward with clarity and support.