Asked by Terrance  |  Submitted January 19, 2015

I'm 25 - what percentage of my income should I put away for retirement?

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  Answers  |  3

January 19, 2015

This is an excellent question, Terrance, and one which more 25-year-olds should be asking, especially since there are no guarantees that Social Security will be there for you at retirement. The answer is dependent on many factors, including what is your risk tolerance, how much do you earn, how much will your income increase in your line of work, etc. But there's an even bigger part of the equation missing... what are your goals at retirement? And at what age do you want to retire? All these things and more need to be considered. Most advisers would calculate that, generally speaking, if a 25 year-old wants to retire at 65, and makes $50k, they'd need to save 17% of their income to have $2.3mil at 65, which is what that individual would be needed to retire in the typical scenarios. But there's a MUCH better way! Watch this 2 min video to learn about it:

$commenter.renderDisplayableName() | 05.10.21 @ 08:04


March 04, 2015

It used to be 10% general rule, but with social security and government budget, might consider anywhere from 10-20% Just remember the golden rule, pay yourself first.

$commenter.renderDisplayableName() | 05.10.21 @ 08:04


December 15, 2015

Hi Terrance,

It all depends on your goals. If you want to retire early (40-50) and spend a lot during retirement you need to be saving a lot. If you are planning on working later into life (65+) and live modestly you don't need to save as much. First determine what you want to do the rest is just math. Be wary of insurance salesmen telling you to open a permanent life insurance policy. They are expensive and not a very good way to save and invest, Seek out the advice of a "Fee-Only" financial advisor if you don't want to go it alone.

Take care,

$commenter.renderDisplayableName() | 05.10.21 @ 08:04