Retirement
How much should you really be saving for retirement?
There's no single right answer, but a few simple benchmarks can help you figure out if you're on track.
There's no single right answer, but a few simple benchmarks can help you figure out if you're on track.
Start with a savings rate, not a dollar amount. A common rule of thumb is to save around 15% of your pre-tax income for retirement each year, including any employer match — though the right number depends on your age, goals, and timeline.
Take the full employer match if you can. If your employer matches retirement contributions, contributing at least enough to capture the full match is effectively an immediate return on your savings that's hard to match elsewhere.
Use age-based milestones as a check-in, not a verdict. Benchmarks like having roughly one year of salary saved by 30, three times by 40, and six times by 50 can help you gauge whether you're on track — but they're a guide, not a strict deadline.
Increase your rate as your income grows. Even small, regular increases to your contribution rate — for example, whenever you get a raise — can meaningfully change your retirement balance over a full career.
Revisit your plan periodically. Life changes — a new job, a growing family, a change in goals — are all good reasons to revisit how much you're saving and whether your retirement accounts still match your timeline.
