What percentage should i contribute to my 401k at age 25

Mid career: Save 1% more each year

As you settle into this busy phase of life, it might feel difficult to stay on track with retirement savings. Perhaps you’re still paying student loans, and now you also have a mortgage, child care and vacations to budget for.

To avoid falling behind on retirement savings, Keckler suggests bumping up your 401(k) contribution by 1% of your salary every year, until you reach the annual maximum ($23,000 in 2024).

In other words, if you are saving 5% of your salary, try increasing that to 6% next year and 7% the year after. If you are saving 10%, bump it to 11%.

“That is a great way to just put your increased savings on autopilot so you don’t have to think about it, you don’t have to recommit to it,” Keckler says, adding that many 401(k) plans have automatic escalation features that will make the annual adjustment for you.

Let’s say you save 5% of your $100,000 salary, or $208 per paycheck, starting at age 30.

By 65, you could have about $720,000 in your 401(k), assuming a modest 7% annual return but no

how much should i contribute to retirement plan

how much should i contribute to retirement account