♥cutemamma♥
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it depends on your income!!! How much you want to have when you retired. If you have a pretty expensive lifestyle then you need to save alot more, then if you just live a modest life.
Good luck |
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Megan G
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As much as they will allow you to contribute. Do at LEAST the maximum that they will match, if your employer has a matching program.
If you are just now starting to save for retirement, you really need to put away as much as you possibly can.
Good luck. |
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jim_elkins
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The usual employee contribution is 3% before tax, with the employer matching up to 3%. Most 401K will permit up to 6% employee contribution, with the employer matching up to 3%.
Someone that is able to manage salting away 9% before tax is going to have a pretty good nest egg but it does take time. Just remember that you can not take a disbursement without penalty until you are 62-1/2. If you stay with your present employer for the next 30 years you should be in pretty decent shape for retirement. |
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bpl
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I think that depends on many factors such as income, retirement age, and other investments. Try some online calculators. They are helpful and you can tailor it to your specific needs. It will allow you to plug in what type of income you want annually when you retire. |
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Pepper
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Well you can be aggressive here. I would recommend maybe 4-5 percent. I don't know what you make or what you can spare. Its a percentage of what you make in those two weeks too..the more you make the more they take. But if you can be aggressive ..do it!! I am in my thirties also and we may not have that social security like they do now...be aggressive and be safe!! |
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NHMike
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At the minimum, you should out in enough to obtain the full company match (if any). For example, if your company matches 50% of the first 6 %, then you should contribute at least 6% of your salary, then you get an additional 3% of your salary added to your account FOR FREE!!!
I have seen studies that indicate that each employee should be putting 20% or MORE away each year for retirement savings. Since you are in your early 30's, you should put as much as you can into the 401(k). The earlier you start and the more you put away will provide a larger retirement balance in the future.
Another issue - If your company has a company stock investment option, DO NOT put all your funds into it. Remember ENRON? Their stock 401(k) is worth 0. The goal is to diversify. Your HR department should be able to provide some help in this area.
Good Luck! |
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Your #1 fan
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What ever the maximum amount is. It is pretax and usually there is a nice company match that comes with it. |
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gsschulte
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me i put in 6% as thats what the company matches, and well in the few months i have been here i have over 2,000 in the account. and since i have done it form the beginning i dont miss the money and the company pays me 6% more in a way. |
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Katmando
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Does your company contribute? I would stay around 6% at your age and go with a more dynamic profile changing it too a less agressive profile in your forties and raising it again closer to retirment. |
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Mona
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The maximum you can afford
http://money.cnn.com/2005/09/06/pf/expert/ask_expert/index.htm |
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Adoptive Father
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Somewhere I read, please do not ask me to find it, that an average person will need to save 10% to 15% of his pre-tax income for a comfortable retirement. This means 10% to 15% of his income for his entire working career. This includes employer match if any. Look into specifics of your employer match. Maybe you can put in 10% and your employer will add something to that 10%. |
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bookish
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It depends on how much you can comfortably afford to do without. When I went into my 401K, the guy said at my salary, the small percentage wouldn't amount to much. I said, well, with my salary, I couldn't even spare what I was giving now. :-) |
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Marko
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A lot depends on how much you've already contributed. If you've already been contributing for the last 10 years, then you won't need to contribute as much. But you may be like me - I didn't really start contributing in earnest until I was about 32. I contribute 12%, get another 4% match from my employer, and still contribute more to my Roth IRA.
I'd say if you're just getting started and don't have any other provisions for retirement, you would want to contribute at least 12%. If you do this, the you'd be able to expect to draw the equivalent (after inflation) of about 65% of your current salary in retirement, using the following assumptions: 1) 35 years investment until retirement, 2) annual 3% raise, 3) 8% return on your investments, 4) 3% annual inflation, 5) withdrawals at retirement equal to 5% of principal, in perpetuity. This may not seem like a lot, but this also doesn't include any other amounts you may have from Social Security, pensions, or anywhere else.
So put in at least 12%, if not more. Good luck. |
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Drew G
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You should at least be contributing $1000 per month. Although since you are in your early 30's you might want to look at contributing more. You are starting a bit late. |
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