How Much Should I Save for Retirement?

The one-number answer

If you want a single rule of thumb, save 15% of your pre-tax income for retirement, including any employer match you receive. That figure assumes you start in your 20s, work steadily, and retire around age 65. It is not a magic number — it is a starting point.

The real answer to "how much should I save for retirement" depends on three things: when you start, how much you already have, and what kind of retirement you want. Someone who starts at 25 can hit the same target with 10–12%. Someone who starts at 45 may need 25–30%.

A savings strategy that actually works

Instead of guessing, use a three-step strategy:

1. Cover the match first. If your employer matches 401(k) contributions, contribute enough to get the full match. It is an immediate 50% or 100% return on your money.
2. Hit 15% next. Once the match is captured, raise your contribution until your total retirement savings rate reaches 15%. If the match gets you to 10%, you only need 5% more.
3. Adjust every year. Save half of every raise, increase your rate by 1% annually, or bump up after paying off debt. Small increases compound into large outcomes.

Run your own salary, age, and balance in the Retirement Savings Calculator to see what rate gets you to your goal.

Where to save first

Tax-advantaged accounts are usually the best place to start. A common order:

1. 401(k) up to the match — free money, tax-deferred growth.
2. HSA if eligible — triple tax-advantaged for healthcare in retirement.
3. Roth or traditional IRA — broader investment choices and lower fees.
4. More 401(k) beyond the match — if the plan has low-cost index funds.
5. Taxable brokerage — for extra savings after maxing tax shelters.

Not sure whether Roth or traditional is better for you? The Roth vs Traditional Calculator compares after-tax outcomes under your tax rate assumptions.

Savings rate by starting age

These rates assume a 7% annual return, 3% annual raises, and a goal of replacing your income through age 95. They are targets, not guarantees.

Rates include employer match as part of the total. If you receive a 4% match, your own contribution plus the match should reach the target.

How to invest what you save

A high savings rate helps, but so does how you invest. For most people, a low-cost, diversified mix of stock and bond index funds is the right foundation. The younger you are, the more you can lean toward stocks; as you approach retirement, bonds can help stabilize the portfolio.

Use the 401(k) Allocation Calculator for a sample mix based on your years to retirement and risk tolerance. It uses a glide path: more stocks when you're young, more bonds as you age.

What if I'm behind?

Most Americans are behind the ideal benchmarks. If that is you, four levers can close the gap:

• Increase your rate by 1–2% now. You may not feel it, but the math changes dramatically.
• Delay retirement by even one or two years. Each extra year is one less year of withdrawals and one more year of contributions and growth.
• Reduce your retirement spending target. A $50,000 annual need requires a smaller nest egg than an $80,000 one.
• Use catch-up contributions. At 50+, you can contribute extra to 401(k)s and IRAs.

See age-based dollar targets in our companion guide, How Much to Save for Retirement by Age.

FAQ

Does the 15% rule include my employer match?

Most planners count the match toward your total savings rate, but they also encourage you to save at least 10% of your own income. If your match is 4%, saving 11% of your own pay gets you to 15% total.

Should I pay off debt before saving for retirement?

Always capture the employer match first — it is hard to beat. After that, high-interest debt (credit cards, payday loans) usually should be paid down before aggressive retirement savings. Low-interest debt can coexist with investing.

Is 15% enough if I want to retire early?

Probably not. Early retirement requires a higher savings rate — often 30–50% — because you have fewer earning years and more withdrawal years. Test your plan with the Retirement Withdrawal Calculator.

What if I can't afford 15% right now?

Start with whatever you can and automate increases. Saving 5% today and raising it 1% every six months gets you to 15% in two years. The most important move is to start.

Where can I see my exact number?

Use the Retirement Savings Calculator to enter your age, salary, current savings, and expected return. It will show you the savings rate needed to reach your goal.

More like this in our Investing 101 hub, including The 4% Rule, Explained and How Much to Save for Retirement by Age.