Saving for Tomorrow

Saving for Tomorrow

How Much Should I Save?

Only about one-third of Americans are saving for retirement.1 That adds up to a lot of people who’ll be struggling financially after they stop working.

Why aren't more of us saving for retirement? The reasons may sound familiar.

It's too hard to get started.

Retirement is still a long ways off.

I'll be fine on my Social Security benefits.

I don't know how much to save.

Here's the Reality.

  1. Your Social Security benefits will probably replace only about 40 percent of your pre-retirement income. Experts say you'll need 80-90 percent of it to live comfortably when you retire.
  2. Your employer offers a retirement plan that is easy to join.
  3. Enrolling in a plan now, rather than putting it off until you're close to retiring, will mean more spending money in retirement.

It's easier than you think to stay on the path to retirement readiness.

Set a Target Savings Goal.

Saving even a small amount of your pay each month can make a big difference when you retire. Your employer makes it easy for you to save. Your company's plan lets you:

  • Optimize the company match, if available
  • Increase your contribution whenever you like
  • Enjoy tax savings and the ease of automatic saving
  • Experience the freedom to choose your investments

Saving Mileposts

Age 30

Target Savings Goal:
​10-15% each paycheck

Aim to Save:
1x annual salary

Age 45

Target Savings Goal:
​15%-20% each paycheck

Aim to Save:
3.5x annual salary

Age 60

Target Savings Goal:
​20% each paycheck

Aim to Save:
7x annual salary

Use your target savings goal and enroll in your company’s plan today. The sooner you start saving, the easier it will be. Starting early gives your money time to compound. That’s when the earnings on your savings are reinvested and begin earning an investment return of their own.

If you’ve already enrolled in your plan, figure out how much more you can save and increase your contribution today.


Use the retirement needs calculator for a quick estimate of how much you might need to save.


1 U.S. Census bureau working paper, Which Employers Sponsor Defined Contribution Plans? 2016

2 Social Security Administration

Saving for Retirement