How Much Should I Save for Retirement?

Written by Greg, founder of FTMarketWatch — a former licensed commodities trader, self-directed investor since. Not a licensed financial advisor.

Short answer: A common starting benchmark suggested by many financial planners is saving roughly 10–15% of pre-tax income for retirement, but the right amount for you depends on your desired retirement age, expected expenses, other income sources like pensions or government benefits, and how early you start.

Detailed Explanation

The earlier you start, the more time your contributions have to benefit from compounding, which generally means starting early lets you save a smaller percentage of income to reach a similar goal compared to starting later in life.

If your employer offers a matching contribution on a retirement plan, contributing at least enough to get the full match is generally considered a high-priority step, since it's effectively an immediate return on that portion of your contribution.

The 10–15% figure is a general rule of thumb, not a personalized recommendation — someone starting to save in their 20s may need a lower percentage than someone starting in their 40s to reach a comparable outcome. A retirement calculator can help you work backward from a specific goal to a more tailored monthly figure.

How Much Should I Save for Retirement?

Detailed Explanation

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