A widely used target is to save about 15% of your gross income for retirement, including any employer match. But the right number depends on when you start — the later you begin, the more you need to set aside.
The 15% guideline
If you start in your 20s and save 15% of income consistently, you have a strong chance of maintaining your lifestyle in retirement. Starting in your 30s or 40s pushes that figure higher — often 20% or more — because there are fewer years for compounding to work.
Always capture the full employer match
If your employer matches 401(k) contributions, that match is an immediate, guaranteed return on your money — effectively free compensation. Contributing at least enough to get the full match should almost always come before any other investing. Skipping it leaves guaranteed money on the table.
Starting late? Use catch-up contributions
If you’re behind, don’t panic — increase your rate gradually, direct raises and bonuses to savings, and use catch-up contributions once you turn 50. Even a few extra points of savings, invested for 15–20 years, add up.
Make increases automatic
The easiest way to save more without feeling it is to raise your contribution by one percentage point each year, or whenever you get a raise. Our calculator lets you model an annual increase so you can see the payoff.