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How much of my annual pay should I be saving for retirement?
That depends on your current age, your net worth, and the lifestyle you want to lead when you quit working. The conventional wisdom is you should set aside at least 10% of your annual pre-tax income for retirement. If you want the freedom to travel or enjoy expensive hobbies, you’ll need to tuck away more. You will also need to step up your retirement contributions if you are half-way or more to retirement and you have little saved up. If you reach age 50 without much of a nest egg, try to save at least 20% of your pre-tax earnings for retirement to have a hope of maintaining your current lifestyle when you retire. Return to Questions
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