What % of your income are you saving for retirement?

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What % of your income are you saving for retirement?

Postby crowd79 » Thu Feb 07, 2013 3:05 pm

For me, it is 30% at age 33. I guess I am quite aggressive....just wondered about others??
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Re: What % of your income are you saving for retirement?

Postby NYBoglehead » Thu Feb 07, 2013 3:08 pm

I'm between 20-25%. It will probably drop once our income goes up, after maxing out all tax-advantaged space I'm probably going to work on knocking out my soon to be acquired mortgage on an accelerated schedule.
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Re: What % of your income are you saving for retirement?

Postby Khanmots » Thu Feb 07, 2013 3:18 pm

I'm around 35% and would like to be around 40%. Age 33 as well
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Re: What % of your income are you saving for retirement?

Postby ao0680 » Thu Feb 07, 2013 3:24 pm

about 30% and I'm 32.
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Re: What % of your income are you saving for retirement?

Postby BudgetForWealth » Thu Feb 07, 2013 3:24 pm

Roughly 25% right now with the 401k and Roth IRA. I'd like to bump it up using taxable accounts.
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Re: What % of your income are you saving for retirement?

Postby Khanmots » Thu Feb 07, 2013 3:25 pm

NYBoglehead wrote:I'm between 20-25%. It will probably drop once our income goes up, after maxing out all tax-advantaged space I'm probably going to work on knocking out my soon to be acquired mortgage on an accelerated schedule.


I tend to count extra payment put towards mortgage principle as retirement contributions since as long as I put the freed cash-flow from year X when it's paid off early until year Y when it was initially scheduled to be paid off towards retirement then I've essentially put the money into retirement accounts today earning a guaranteed fixed rate of return. In other words, I treat it as no different than a CD with each month's extra principle contribution having a different duration than the previous.
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Re: What % of your income are you saving for retirement?

Postby Grt2bOutdoors » Thu Feb 07, 2013 3:30 pm

40-50%, give or take a percent or two. Make hay while the sun shines.
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Re: What % of your income are you saving for retirement?

Postby drs85 » Thu Feb 07, 2013 3:31 pm

37.29% :greedy
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Re: What % of your income are you saving for retirement?

Postby MnD » Thu Feb 07, 2013 3:42 pm

People have widely varying definitions of what to count as savings as well as income.
They are also very unlikely to "average out" and remove from savings large infrequent expenses like a new kitchen or vehicle paid with cash.

And some people are real champs at saving and real chumps when it comes to investing, real estate transactions, bankrolling human sponges such as adult children, financially reckless spouses etc. Current household net worth as a percentage of lifetime cumulative earned income is a more telling statistic as it integrates savings, withdrawals from savings and long-term investment performance.
Last edited by MnD on Thu Feb 07, 2013 3:48 pm, edited 1 time in total.
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Re: What % of your income are you saving for retirement?

Postby WendyW » Thu Feb 07, 2013 3:43 pm

Khanmots wrote:I tend to count extra payment put towards mortgage principle as retirement contributions

Agreed. Even the non-extra mortgage payments could be considered to be saving towards your retirement, to some extent.

I currently save 25-30% of my gross income for retirement, but I rent and don't have a mortgage.
I feel that person that has a mortgage and that is also saving 15% of their gross could arguably be saving more for retirement than I am.
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Re: What % of your income are you saving for retirement?

Postby NYBoglehead » Thu Feb 07, 2013 3:45 pm

Khanmots wrote:
NYBoglehead wrote:I'm between 20-25%. It will probably drop once our income goes up, after maxing out all tax-advantaged space I'm probably going to work on knocking out my soon to be acquired mortgage on an accelerated schedule.


I tend to count extra payment put towards mortgage principle as retirement contributions since as long as I put the freed cash-flow from year X when it's paid off early until year Y when it was initially scheduled to be paid off towards retirement then I've essentially put the money into retirement accounts today earning a guaranteed fixed rate of return. In other words, I treat it as no different than a CD with each month's extra principle contribution having a different duration than the previous.


Thanks Khanmots, I like that way of looking at it. I'm not there yet since I'm just looking at houses now, but that's the plan after I put ink to paper on it. After maxing out all tax-deferred accounts, of course.
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Re: What % of your income are you saving for retirement?

Postby WHL » Thu Feb 07, 2013 3:46 pm

about 50%.

maxing 401k, Roth IRA, i-bonds, and an additional 10-20k a year in taxables. I could do more if tightened up my budget but I'm okay with it for now.
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Re: What % of your income are you saving for retirement?

Postby leo383 » Thu Feb 07, 2013 3:54 pm

I knew Bogleheads were savings outliers, but I had no idea. :eek:

We save about 20%
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Re: What % of your income are you saving for retirement?

Postby hand » Thu Feb 07, 2013 3:59 pm

Maxing 2x 401(k) + 2x ROTH IRA + company contributions Cash Balance pensions = roughly 25%.
Our living expenses are reasonable, and under 40 with 3x salary in tax deferred so have a good base and not too worried about ramping up the savings percentage.

Extra cash at the end of the year goes to repaying (cheap) housing debt.
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Re: What % of your income are you saving for retirement?

Postby bradshaw1965 » Thu Feb 07, 2013 4:00 pm

It's been 20%. Now that my son is finishing up college it will probably jump a bit.
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Re: What % of your income are you saving for retirement?

Postby hand » Thu Feb 07, 2013 4:00 pm

leo383 wrote:I knew Bogleheads were savings outliers, but I had no idea. :eek:

We save about 20%


There is of course a bit of a selection bias in both this community and this thread!
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Re: What % of your income are you saving for retirement?

Postby MathWizard » Thu Feb 07, 2013 4:07 pm

At least 15% per year. Usually 20-30%

Second child is entering college this fall, I may have to drop back to 15%
for awhile.

If I count my mortage payment which will go poof about the same time
as my second child graduates, it would be another 10% higher.
I do intend to save that money for retirement.
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Re: What % of your income are you saving for retirement?

Postby nimo956 » Thu Feb 07, 2013 4:11 pm

I save about 45-50% of gross income
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Re: What % of your income are you saving for retirement?

Postby Chan_va » Thu Feb 07, 2013 4:12 pm

Say you make 10k, and you save 1k pre tax and 1k post tax. What total % is that? Is it 20%? Or something different based on your tax bracket?
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Re: What % of your income are you saving for retirement?

Postby fcox85 » Thu Feb 07, 2013 4:12 pm

Starting in 2013, we increased my contributions to max out my 401(k). Depending on whether you include employer match, it's 18-21% of gross. I'm 28, my wife is 24.

Once my student loans are paid off (most likely later this year), we plan to increase that by trying to max out Roths every year as well.
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Re: What % of your income are you saving for retirement?

Postby armeliusc » Thu Feb 07, 2013 4:14 pm

About 40% of gross income, or 47% of (what I call) "take home" at age 32. I guess the challenge is to not let this rate go down as life "happens".
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Re: What % of your income are you saving for retirement?

Postby boknows » Thu Feb 07, 2013 4:18 pm

We're saving ~50-60% depending on how you calculate with pre/post tax money. It'd be more if my wife was working full-time. Age 31.
32 - Married - Aiming for FI/ER in early 40s.
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Re: What % of your income are you saving for retirement?

Postby Ice-9 » Thu Feb 07, 2013 4:19 pm

The previous four years it has varied between 29% and 46%. However, sadly, this year it will be less, but for a happy reason. We're saving for a wedding and replenishing emergency fund after new furnace and AC, and I project only saving 12% in retirement accounts. Age 39.

EDIT: Re-reading this thread, I just realized I made a mistake. I work for a local government that offers a mandatory 401(a) plan, which is like just the matching portion of a 401(k), as well as an optional 457 plan. For the mandatory 401(a), I was counting the entire yearly contribution, which includes what my employer matches - Woops! When I consider just the employee portion of the 401(a), it looks like all of my percentages listed above go down about 8%.

So, using gross income and only counting the employee portion of the mandatory account, my retirement savings varied from 21%-38% over the last four years, and my low savings this year will probably amount to 4%.
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Re: What % of your income are you saving for retirement?

Postby englishgirl » Thu Feb 07, 2013 4:21 pm

I guess that I'm at about 15%.

I'm saving a lot for other things right now. Once that is all finished, I hope to bump up the retirement savings.
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Re: What % of your income are you saving for retirement?

Postby VictoriaF » Thu Feb 07, 2013 4:24 pm

Does income include investment income or only employment income?

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Re: What % of your income are you saving for retirement?

Postby Clark & Addison » Thu Feb 07, 2013 4:26 pm

I say that we (both 29) only save 15% of our gross towards retirement, but with both of our company matches it would be right at 20%. We are also planning on having our mortgage paid of in the next 3 months, which will allow us to bump up the amount we save towards retirement.
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Re: What % of your income are you saving for retirement?

Postby eaglesfogbowl » Thu Feb 07, 2013 4:26 pm

31, my wife is 33... I project that we save about 24% of our total compensation this year (we're immediately vested in all 401k match so I count it). In addition we're putting away an addition about 20% towards short term goals (a vacation, a new to us car, etc, this year then starting to pay additional on mortgage starting in 2014 with a goal of payoff by end of 2017).

So up until 2018 we'll be saving about 24-30% of our total comp, then when the house is paid we'll probably cap it at 50% and let our lifestyle expand/possibly upgrade our house with a mortgage about 25-35% of it's purchase price.
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Re: What % of your income are you saving for retirement?

Postby NYBoglehead » Thu Feb 07, 2013 4:30 pm

Clark & Addison wrote:I say that we (both 29) only save 15% of our gross towards retirement, but with both of our company matches it would be right at 20%. We are also planning on having our mortgage paid of in the next 3 months, which will allow us to bump up the amount we save towards retirement.



Mortgage paid off at 29! That is awesome. Congrats.
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Re: What % of your income are you saving for retirement?

Postby scone » Thu Feb 07, 2013 4:35 pm

About 50% of gross income. We paid off the house last year, which makes things a lot easier. 4 years to go until retirement, so we're on a mission. :)
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Re: What % of your income are you saving for retirement?

Postby Aptenodytes » Thu Feb 07, 2013 4:37 pm

About 30% for me too. I've tried to up the percentage every time I got a raise.
(this is a percentage of gross income from salaried and contract work, which I think is the only comparable metric)
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Re: What % of your income are you saving for retirement?

Postby Khanmots » Thu Feb 07, 2013 4:57 pm

WendyW wrote:
Khanmots wrote:I tend to count extra payment put towards mortgage principle as retirement contributions

Agreed. Even the non-extra mortgage payments could be considered to be saving towards your retirement, to some extent.

I currently save 25-30% of my gross income for retirement, but I rent and don't have a mortgage.
I feel that person that has a mortgage and that is also saving 15% of their gross could arguably be saving more for retirement than I am.

Yeah, or at least the principle part of the payment could... but exactly how to treat a mortgage in an AA is such a tricky thing.

Gonna be nice when I get this house paid off in 9.5 years... be able to funnel a lot more towards "real" retirement accounts then. :D
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Re: What % of your income are you saving for retirement?

Postby Default User BR » Thu Feb 07, 2013 5:31 pm

I put 25% of salary into the 401(k), plus catch-up, and 6500 into a Roth IRA. From there whatever isn't spent is saved, but I don't bother to figure out what that amount is.


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Re: What % of your income are you saving for retirement?

Postby ofcmetz » Thu Feb 07, 2013 5:55 pm

Last few years we shot for about 25%. Usually we save a little more than this.
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Re: What % of your income are you saving for retirement?

Postby C319 » Thu Feb 07, 2013 5:57 pm

20% of gross
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Re: What % of your income are you saving for retirement?

Postby MoonOrb » Thu Feb 07, 2013 6:00 pm

Age 37, saving 30% of gross income.
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Re: What % of your income are you saving for retirement?

Postby Savvy » Thu Feb 07, 2013 6:03 pm

About 30% of gross. Age 23&24.
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Re: What % of your income are you saving for retirement?

Postby rr2 » Thu Feb 07, 2013 6:05 pm

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Re: What % of your income are you saving for retirement?

Postby letsgobobby » Thu Feb 07, 2013 6:21 pm

it varies between 30-50% of gross, with employer retirement contributions considered in both the numerator and denominator.
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Re: What % of your income are you saving for retirement?

Postby spotty_dog » Thu Feb 07, 2013 6:22 pm

We're in our thirties with two kids and one income. Last year about 25% of AGI went toward retirement account contributions. We also put money toward college savings and paying down the mortgage a bit.
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Re: What % of your income are you saving for retirement?

Postby nirvines88 » Thu Feb 07, 2013 6:25 pm

In 2012 I saved a little over 65% of my pre-tax work salaries (1 full-time job, 1 part-time job). This does not include investment income (which is typically set to reinvest). Maxed out Roth, nearly maxed the 401k (couldn't max because I didn't have access for whole year), and added a bit to taxable accounts. This was an unusual year though, as I worked part-time and finished up my master's degree the first few months of the year before going on to full-time employment.

For 2013 I hope to save about 45% of my pre-tax salaries. I don't make much, but I also live pretty cheaply since I'm young, have cheap rent/roommates, and have simple hobbies (e.g. running). I don't feel like I'm living that frugally, as I buy any food I want and all the stuff I want (although I don't want much). :wink:

My only expensive interest (that I'm trying to make into more of a true hobby) is traveling. In addition, a house in a few years (if I go that route) will likely throw a wrench into retirement savings, so I'm trying to get a good head start!
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Re: What % of your income are you saving for retirement?

Postby michaelsieg » Thu Feb 07, 2013 6:33 pm

I barely spend 20% of my net income, i.e. save about 80% of my net income, my wife has a savingsrate of about -400% of her income, which she spends mostly on our kids, and at the end we save about 15%/month of our combined income....
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Re: What % of your income are you saving for retirement?

Postby mac808 » Thu Feb 07, 2013 6:34 pm

80% of after-tax income. No kids, no car, no other major expenses other than rent.
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Re: What % of your income are you saving for retirement?

Postby Random Poster » Thu Feb 07, 2013 6:39 pm

It depends on how you calculate the numbers (since I get paid in multiple currencies, some of it tax-free, and I never can quite figure out what my tax numbers are on the taxable portion until well after the fact), but:

If I count all of my income (salary, bonus, dividends, pre-inheritance checks, etc), and count all of my investments (taxable investing, IRA contributions, 401K contributions, etc), I think that I'm saving somewhere between 75% of gross income and 90% of net income.

This level of savings (and income) won't last forever, so I'm trying to make the most of it while I can.
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Re: What % of your income are you saving for retirement?

Postby nodenuff2 » Thu Feb 07, 2013 6:46 pm

When the increase in the value of my Defined benefit plan is added to my 401k savings and company match about 95% of my salary not including any increase in value the 401k might have. God is sooo good.
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Re: What % of your income are you saving for retirement?

Postby crowd79 » Thu Feb 07, 2013 6:51 pm

Maxing out IRA every year and getting the employer match on my 401k + EE Bonds = my 30% of income. When I have more income available, I will have to decide whether to contribute more to the 401k (with lousy 1% ER fund options) or in taxable but tax-efficient low ER stock index funds.
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Re: What % of your income are you saving for retirement?

Postby mrspremise » Thu Feb 07, 2013 6:52 pm

Let's see, pre-tax income...
28% goes into our tax-advantaged retirement savings vehicles (401k and Roth IRA)- this is all retirement
14% went into a 529 this year and last year, though we might stop after the third year to just let our money work (not exactly retirement, but savings)
10% goes into a DSPP plan, with our primary intention being to sell it and diversify into our other investment, so some of that could turn into the Roth IRA above or the 529
Anything left over (when our cash reserves get higher than we need) goes into our taxable portfolio. We might decide to sell off the house at some point when we get a windfall we are expecting which means more savings down the road.

I guess 38%+ for retirement, dual career (ages 31 and 32) with 1 kid
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Re: What % of your income are you saving for retirement?

Postby stoptothink » Thu Feb 07, 2013 6:57 pm

Was ~60% last year, but had to make a significant cash purchase a few weeks ago which almost completely drained my emergency fund so it will be significantly lower the next 6 months or so as I rebuild cash reserves.
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Re: What % of your income are you saving for retirement?

Postby DVMResident » Thu Feb 07, 2013 7:10 pm

Household: age 30 + 33, ~22.8% on a pre-tax basis, broken down as follows:
2 x IRAs
4.8% into a 403(b) including the match
2.8% in a 403(b) (no match :| )
4.2% contribution towards pension that gives a COLA'ed 2.5%* based on the 3 year weighed average salary of the highest pay (assuming your claim starts at 65 years old), 3.5 years into the program so far

*I'm guessing the pay out for government pensions will change over the next 30 years, but for now it seems like a good deal
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Re: What % of your income are you saving for retirement?

Postby Cherokee8215 » Thu Feb 07, 2013 7:16 pm

Somewhere between 30% and 35% of gross. Employer contributions/matching pushes it up to around 35-40%. Single, early 30s.

Not all of that technically goes into "retirement" accounts (401k/IRA), but it is money that isn't spent and probably won't be spent until I retire.
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Re: What % of your income are you saving for retirement?

Postby wesleymouch » Thu Feb 07, 2013 7:17 pm

40% of gross.
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