What % of your income are you saving for retirement?

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

Postby LiketoHike » Sat Feb 16, 2013 11:33 am

I am 49 years old and saving about 65% of net income. Also maxing out 401K.
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Re: What % of your income are you saving for retirement?

Postby engineer1969 » Sat Feb 16, 2013 12:19 pm

We save 15%. I'm 43 and have been saving that rate since I was 18. We have three children so saving more isn't an option for us atm, but I expect to bump that up to about 25% after they are out on their own. If all goes as planned (IF!), I expect to have more income in retirement than I have working.
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Re: What % of your income are you saving for retirement?

Postby kermit » Sat Feb 16, 2013 12:32 pm

It varies year to year based on bonuses. But right now we are 27 years old and saving 25% of our income. In a few years, once my wife is out of residency, we plan to increase this to around 35%.
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Re: What % of your income are you saving for retirement?

Postby HomerJ » Sat Feb 16, 2013 12:59 pm

We were saving 60%, and because of that we saved enough that my wife could quit her job (which she hated), and now we're only saving 20%... :)
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Re: What % of your income are you saving for retirement?

Postby jdilla1107 » Sat Feb 16, 2013 1:08 pm

I think this topic is a bit silly because I think people have different definitions of income and savings.

Are the following income, savings, or both?

401k company match
Pension accumulation
unrealized capital gains
realized capital gains
reinvested dividends/interest
IRA, HSA, 401k contributions
college savings (maybe not because are we talking retirement savings rate?)
Withdrawls for your "savings accounts" (like if you have a vacation fund)

And what time rate are people measuring? If you saved 35% for the last three months and then take a vacation the next month, does your rate plunge for the year? I bet people's monthly savings rate often go, 20%, 30%, -70%

These are all rhetorical questions, but my guess is we are all talking different things.
Last edited by jdilla1107 on Sat Feb 16, 2013 1:26 pm, edited 1 time in total.
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Re: What % of your income are you saving for retirement?

Postby travellight » Sat Feb 16, 2013 1:20 pm

77.5% of net.
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Re: What % of your income are you saving for retirement?

Postby 555 » Sat Feb 16, 2013 1:42 pm

jdilla1107 wrote:"I think this topic is a bit silly because I think people have different definitions of income and savings.

Are the following income, savings, or both?

401k company match
Pension accumulation
unrealized capital gains
realized capital gains
reinvested dividends/interest
IRA, HSA, 401k contributions
college savings (maybe not because are we talking retirement savings rate?)
Withdrawls for your "savings accounts" (like if you have a vacation fund)"


These details don't really matter. If one person says they are saving 3% and another says they are saving 60%, then regardless of method, it's obvious who has the higher saving rate.

Just looking through this thread, it's obvious that people here have a significantly higher saving rate than the population at large.
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Re: What % of your income are you saving for retirement?

Postby crinkles » Sat Feb 16, 2013 10:05 pm

Here's a view of down under.

In our "tax advantaged" we save 11.9% in two accounts that are 90/10 and 75/25 equities/defensive respectively.
Outside our tax advantaged (Regular Savings) we save 10.7% about 80/20 in cash and CD's mostly for a home deposit one day.

SO total 22.6%

These are expressed as the ratio of savings against our after tax income.

We are 31, single income ($80k earnings + $15k govt benefits) with three kids - 3, 4 and 6.
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Re: What % of your income are you saving for retirement?

Postby hq38sq43 » Sat Feb 16, 2013 11:10 pm

crowd79 wrote:For me, it is 30% at age 33. I guess I am quite aggressive....just wondered about others??

Please consider how much current enjoyment you are forgoing in the hope of future enjoyment. My sister lived a pious, frugal, healthy life in the hope of many years' enjoyment of her church, family, and bee-keeping, She died weeks after retirement at 50. Tomorrow is promised to no one.
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Re: What % of your income are you saving for retirement?

Postby SHL » Sat Feb 16, 2013 11:17 pm

27.7%
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Re: What % of your income are you saving for retirement?

Postby wander » Sat Feb 16, 2013 11:19 pm

10.00%.
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Re: What % of your income are you saving for retirement?

Postby tacster » Sat Feb 16, 2013 11:30 pm

hq38sq43 wrote:
crowd79 wrote:For me, it is 30% at age 33. I guess I am quite aggressive....just wondered about others??

Please consider how much current enjoyment you are forgoing in the hope of future enjoyment. My sister lived a pious, frugal, healthy life in the hope of many years' enjoyment of her church, family, and bee-keeping, She died weeks after retirement at 50. Tomorrow is promised to no one.


It is sad when people don't live long enough to enjoy the retirement they've saved long and hard to provide for themselves. But it's also sad (and unfortunately very common) for people to be retired and living on a shoestring. A lifetime of not forgoing current enjoyment can only increase the likelihood of the latter. I personally do not feel I'm forgoing any enjoyment to maintain a high savings rate. On the contrary, my regret is that I didn't save more earlier in life.
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Re: What % of your income are you saving for retirement?

Postby Paul78 » Sat Feb 16, 2013 11:54 pm

tacster wrote:
hq38sq43 wrote:
crowd79 wrote:For me, it is 30% at age 33. I guess I am quite aggressive....just wondered about others??

Please consider how much current enjoyment you are forgoing in the hope of future enjoyment. My sister lived a pious, frugal, healthy life in the hope of many years' enjoyment of her church, family, and bee-keeping, She died weeks after retirement at 50. Tomorrow is promised to no one.


It is sad when people don't live long enough to enjoy the retirement they've saved long and hard to provide for themselves. But it's also sad (and unfortunately very common) for people to be retired and living on a shoestring. A lifetime of not forgoing current enjoyment can only increase the likelihood of the latter. I personally do not feel I'm forgoing any enjoyment to maintain a high savings rate. On the contrary, my regret is that I didn't save more earlier in life.



You just have to find the level you are comfortable with.

For me maxing out my ira and tsp every year (in combination with tsp employer matching and employee pension plan - will be about 40k a year in todays money) would be enough for me to maintain a decent lifestyle (by my standards) for at least 30 years when I retire. The earliest I can retire is 57 and I doubt I will make it to 87 (ie 30 years of decent income is very safe).

Thus I really do not need to save any additional $$$ for retirement but I will.
- my current lifestyle is just fine by my standards
- if I am lucky enough to make it to 57 I will have a little bit extra cash to spend each year in retirement

I could die of a heart attack at 50, or a car accident at 25, or cancer before 40. You just have to make an educated guess and hope it works out for the best.
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Re: What % of your income are you saving for retirement?

Postby Default User BR » Sun Feb 17, 2013 2:54 pm

hq38sq43 wrote:Please consider how much current enjoyment you are forgoing in the hope of future enjoyment. My sister lived a pious, frugal, healthy life in the hope of many years' enjoyment of her church, family, and bee-keeping, She died weeks after retirement at 50. Tomorrow is promised to no one.

Neither is a short life. One can only make the best plans one can. If you spend your money and have inadequate resources for retirement, are you consoled by the fun you had as a kid? I think your sister did a good job. The fact that things did not work to plan does not make it a bad plan.


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

Postby floydtime » Mon Feb 18, 2013 6:15 pm

The idea that being frugal is somehow unpleasant is, I think, a very American (or perhaps, very Western) idea. Several years ago when my wife and I decided to get on a budget, be frugal, and become financially independent in the near term, I was dreading it.

Now I don't know if I could go back - I certainly never WANT to go back.

It is so liberating not to have any real urge to buy stuff. And the few things we do spend on (like travel, and improvements to our perfect little house), we appreciate SO much more.
"Do not value money for any more nor any less than its worth; it is a good servant but a bad master" - Alexandre Dumas
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Re: What % of your income are you saving for retirement?

Postby AustenNut » Mon Feb 18, 2013 7:26 pm

Our household has been discussing this very issue lately. In my family the "youngest" grandparents to die were in their 80s, and the others in their 90s. I've always assumed that I will make it to retirement, and have a long one at that. My husband's family, on the other hand, is completely opposite. With the exception of one grandparent, no one made it past their fifties. Although some of those deaths were not due to natural causes (Agent Orange complications for one, black lung from mining for another), this creates a very different mindset between my spouse and I. I hope we'll both have long lives and a happy retirement, but there's definitely no guarantee of it, which makes it all that much more important to maintain a balance between spending now and saving for later.
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22%

Postby Marmot » Mon Feb 18, 2013 8:37 pm

That includes all tax advanataged accounts maxed out, ira max'ed, plus some extra.
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Re: What % of your income are you saving for retirement?

Postby RobInCT » Mon Feb 18, 2013 9:25 pm

Saving 10% to 15% here in my mid-thirties, but throwing another 25% at student loans. Hope to be at 35%+ next year once the loans are paid off.

And yes, having a high gross income does help. I intend to take a 50% payout within the next few years to pursue a dream job, and my target savings goal thereafter will be more like 10%.
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Re: What % of your income are you saving for retirement?

Postby crowd79 » Mon Feb 18, 2013 10:09 pm

hq38sq43 wrote:
crowd79 wrote:For me, it is 30% at age 33. I guess I am quite aggressive....just wondered about others??

Please consider how much current enjoyment you are forgoing in the hope of future enjoyment. My sister lived a pious, frugal, healthy life in the hope of many years' enjoyment of her church, family, and bee-keeping, She died weeks after retirement at 50. Tomorrow is promised to no one.


Ha, I don't feel I am forgoing any enjoyment at all at my current age. Okay, so I won't go out to eat and drink at the bars 3-4 times a week and blow $200/week like some of my friends I know, or spend money seeing movies every single weekend. Of course I'll do those things now and then, but there are plenty of things that I enjoy that don't cost a lot of money, i.e. beach, skiing, camping, biking, kayaking, hiking, jogging, reading periodicals at the library and socializing with neighbors, etc, etc.

I agree that every day of life should be taken seriously. Every day we hear of tragedies it seems. Sorry about your sister dying at such a young age. However, I'd rather play with the odds, and the odds are, the vast majority of people live well beyond 50, 60, 70 years old nowadays. I guess I'd like to think I'll live a long, good life....It's been proven that the more that I can save now in my early years, the less I'll have to save later on, as the power of compounding has a bigger impact the longer my money sits in the market, rather than vice versa (save little now and more later). I feel gratified.
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Re: What % of your income are you saving for retirement?

Postby travellight » Mon Feb 18, 2013 11:42 pm

there are plenty of things that I enjoy that don't cost a lot of money, i.e. beach, skiing,


are you one of those that climbs up the mountain? jk, but I think skiing is a pretty expensive sport. It is 80-102$ for a lift ticket these days where I ski.
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Re: What % of your income are you saving for retirement?

Postby ofcmetz » Tue Feb 19, 2013 12:43 am

HomerJ wrote:We were saving 60%, and because of that we saved enough that my wife could quit her job (which she hated), and now we're only saving 20%... :)


This ^ is awesome. I remember reading your story in more detail on other threads. It's awesome that you made it to that point. :D Congrats
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Re: What % of your income are you saving for retirement?

Postby ofcmetz » Tue Feb 19, 2013 12:51 am

Default User BR wrote:
hq38sq43 wrote:Please consider how much current enjoyment you are forgoing in the hope of future enjoyment. My sister lived a pious, frugal, healthy life in the hope of many years' enjoyment of her church, family, and bee-keeping, She died weeks after retirement at 50. Tomorrow is promised to no one.

Neither is a short life. One can only make the best plans one can. If you spend your money and have inadequate resources for retirement, are you consoled by the fun you had as a kid? I think your sister did a good job. The fact that things did not work to plan does not make it a bad plan.


Brian



Well said Brian. All you can do is come up with a good plan and stick with it. That plan should include saving enough for the future as well as allowing room for enjoyment of the present. But there is another part and that includes designating a place for what's left after you depart. For me knowing that my wife and kids will be able to not have to worry about money if I pass early is enough. If they weren't in the picture, then a charity or charities would get it and that would be very satisfying to me as well. When my great uncle passed two years ago he donated almost every asset he had to a Catholic homeless shelter including his house. I don't think he would say he had any regrets about not being able to spend it all.
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Re: What % of your income are you saving for retirement?

Postby Scott S » Tue Feb 19, 2013 1:03 am

I'm on track to sock away about 38% (including the employer match) this year, at age 32.

Things that help: low cost of living in my area, no kids, no expensive hobbies. :sharebeer
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Re: What % of your income are you saving for retirement?

Postby origami » Tue Feb 19, 2013 1:18 am

75% of after tax income. 33 years old.
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Re: What % of your income are you saving for retirement?

Postby awval999 » Tue Feb 19, 2013 2:53 am

origami wrote:75% of after tax income. 33 years old.


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

Postby awval999 » Tue Feb 19, 2013 2:54 am

travellight wrote:77.5% of net.


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

Postby origami » Tue Feb 19, 2013 2:43 pm

awval999 wrote:
origami wrote:75% of after tax income. 33 years old.


show your work


I'm a full time employee and my salary has doubled in the last 5 years. I had to move to a more expensive city to achieve that, but I was saving money before the salary increase and I was saving money 10 years ago, when I was making four times less than now. I'm happy with my frugal lifestyle and I don't see why I have to spend more money just because I started making more.
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Re: What % of your income are you saving for retirement?

Postby crowd79 » Tue Feb 19, 2013 5:50 pm

travellight wrote:
there are plenty of things that I enjoy that don't cost a lot of money, i.e. beach, skiing,


are you one of those that climbs up the mountain? jk, but I think skiing is a pretty expensive sport. It is 80-102$ for a lift ticket these days where I ski.


I buy a lift ticket for the season at $300 in the fall when rates are on sale. $300 spread out of 5 months of winter snows in an average winter= $18.75 per week. 8-)

Scott S wrote:I'm on track to sock away about 38% (including the employer match) this year, at age 32.

Things that help: low cost of living in my area, no kids, no expensive hobbies. :sharebeer


+1. Exactly. I've got the cheapest rent and electricity rates in the State where I live at!
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Re: What % of your income are you saving for retirement?

Postby novastepp » Tue Feb 19, 2013 8:47 pm

...and the best grammar.

My wife and I save around 40% of our gross income. I max out 403b and 457 plans each year. My University places 15% of my gross salary into my GSRA. My wife contributes up to her company match of 3% of her salary. We also max out our Roth's each year.
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Re: What % of your income are you saving for retirement?

Postby travellight » Wed Feb 20, 2013 1:44 am

Ditto.... I have a decent high income but spend moderately. I spend about 70k per year but it is that high due to private school tuition of 26k per year.
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Re: What % of your income are you saving for retirement?

Postby hoppy08520 » Wed Feb 20, 2013 8:31 am

floydtime wrote:The idea that being frugal is somehow unpleasant is, I think, a very American (or perhaps, very Western) idea. Several years ago when my wife and I decided to get on a budget, be frugal, and become financially independent in the near term, I was dreading it.

Now I don't know if I could go back - I certainly never WANT to go back.

It is so liberating not to have any real urge to buy stuff. And the few things we do spend on (like travel, and improvements to our perfect little house), we appreciate SO much more.

I love what you wrote and I could have written the same thing. I've been gradually doing is over the last year or so myself. It's almost like I've retrained myself to the point where I just don't want to buy anything any more, and rather than that making me feel deprived, it gives me a feeling of power and liberation because it will make the day of my financial independence come sooner.
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Re: What % of your income are you saving for retirement?

Postby hoppy08520 » Wed Feb 20, 2013 8:33 am

travellight wrote:
there are plenty of things that I enjoy that don't cost a lot of money, i.e. beach, skiing,


are you one of those that climbs up the mountain? jk, but I think skiing is a pretty expensive sport. It is 80-102$ for a lift ticket these days where I ski.

If you're a local and find the right deals, you can often get a season pass at a mountain for a few hundred bucks.
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Re: What % of your income are you saving for retirement?

Postby jasc15 » Wed Feb 20, 2013 10:34 am

20% retirement
30% savings
20% taxes
30% all expenses

I can't seem to get over the hump of moving funds from savings to IRA. I would like to buy a house in the next few years, as well as get married and everything that comes along with that. Someone earlier in the thread mentioned "pay now, or pay later". I know that I would be "borrowing" from retirement by keeping more in short term savings, as well as giving up the tax advantaged space and the additional compounding time. It's a real dilemma for me lately.
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Re: What % of your income are you saving for retirement?

Postby Grt2bOutdoors » Wed Feb 20, 2013 11:21 am

jasc15 wrote:20% retirement
30% savings
20% taxes
30% all expenses

I can't seem to get over the hump of moving funds from savings to IRA. I would like to buy a house in the next few years, as well as get married and everything that comes along with that. Someone earlier in the thread mentioned "pay now, or pay later". I know that I would be "borrowing" from retirement by keeping more in short term savings, as well as giving up the tax advantaged space and the additional compounding time. It's a real dilemma for me lately.


I'm the "pay now or pay later" poster. :wink: Don't get crazy about retirement - don't be the guy who tucks everything morsel away for retirement only to find life has passed by and you failed to enjoy some or most of it (I've known a few folks like that - time waits for no one). You need a place to live - you want to own, fine - many of us own or are on our way to owning, some don't feel like ownership is for them, and some are unable to right now - there is no "one size fits all". Saving 20% for retirement is more than many are doing and over time you will save more. Use your savings bucket for your downpayment, engagement, furnishings, etc. There is no dilemma, only priorities - home and retirement for now. When you meet Mrs. Boglehead that will be your next priority. Moderation and balance in everything, even when things appear to be in a flux state. It doesn't have to be all or nothing.
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Re: What % of your income are you saving for retirement?

Postby scrabbler1 » Wed Feb 20, 2013 2:10 pm

jasc15 wrote:20% retirement
30% savings
20% taxes
30% all expenses

I can't seem to get over the hump of moving funds from savings to IRA. I would like to buy a house in the next few years, as well as get married and everything that comes along with that. Someone earlier in the thread mentioned "pay now, or pay later". I know that I would be "borrowing" from retirement by keeping more in short term savings, as well as giving up the tax advantaged space and the additional compounding time. It's a real dilemma for me lately.


As someone who sought to retire (very) early, I had a similar dilemma. I liked the tax-savings by putting money into my 401(k) when I was still working. But at the same time, I needed money in my taxable accounts to get me to age ~60 when I would have unfettered access to my IRA and soon my other "reinforcements" such as my company frozen pension and Social Security. My goal was to minimize the tax bite when I had to liquidate my 401(k) upon leaving my job. I used NUA to cash out my company stock which was about half of my total 401(k). I paid only 15% federal taxes (plus state income taxes) on the NUA which was 97% of the total stock value. The rest of the 401(k) I did a direct rollover into an TIRA so that was tax-free. I had some after-tax contributions in the 401(k) so I was able to take them out tax-free (to pay some of the taxes on the stock).
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Re: What % of your income are you saving for retirement?

Postby crowd79 » Sun Mar 10, 2013 2:28 pm

I have to say I am really amazed at the savings rates of some people.

And I thought I was saving enough at 30%! :oops:
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Re: What % of your income are you saving for retirement?

Postby kamo » Sun Mar 10, 2013 11:48 pm

crowd79 wrote:I have to say I am really amazed at the savings rates of some people.

And I thought I was saving enough at 30%! :oops:


You very likely are saving enough. For you.
Don't compare yourself to others, in savings rates or other ways. That's a competition that no one ever wins.
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Re: What % of your income are you saving for retirement?

Postby Marmot » Mon Mar 11, 2013 6:48 pm

We are saving 17%
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Re: What % of your income are you saving for retirement?

Postby SC Hoosier » Tue Mar 12, 2013 6:13 pm

ofcmetz wrote:
Default User BR wrote:
hq38sq43 wrote:Please consider how much current enjoyment you are forgoing in the hope of future enjoyment. My sister lived a pious, frugal, healthy life in the hope of many years' enjoyment of her church, family, and bee-keeping, She died weeks after retirement at 50. Tomorrow is promised to no one.

Neither is a short life. One can only make the best plans one can. If you spend your money and have inadequate resources for retirement, are you consoled by the fun you had as a kid? I think your sister did a good job. The fact that things did not work to plan does not make it a bad plan.


Brian



Well said Brian. All you can do is come up with a good plan and stick with it. That plan should include saving enough for the future as well as allowing room for enjoyment of the present. But there is another part and that includes designating a place for what's left after you depart. For me knowing that my wife and kids will be able to not have to worry about money if I pass early is enough. If they weren't in the picture, then a charity or charities would get it and that would be very satisfying to me as well. When my great uncle passed two years ago he donated almost every asset he had to a Catholic homeless shelter including his house. I don't think he would say he had any regrets about not being able to spend it all.


I think that the concept is balance. Deny yourself a little and live a little. My dream is to enjoy retirement with my best friend, my wife. If she doesn't make it that long, I want to know that I enjoyed her on the way there, taking some trips, having fun together.

I have another question regaurding savings percentage: Is it easier to save a higher percentage on a large income or a small one? Taxes play into this on the high side and living expenses on the low side. Look forward to replies.

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

Postby Johm221122 » Tue Mar 12, 2013 9:34 pm

It is way easier to save on a large income. Taxes are only higher on the higher income. So , having a higher income would make it easier to save a higher percentage unless the person lived a higher lifestyle
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Re: What % of your income are you saving for retirement?

Postby frugalhen » Tue Mar 12, 2013 10:00 pm

What would interest me is how many people invest beyond all tax deferred options (401k/iras etc) as well as spouses if applicable.

We save about 30% but that includes a 401k and a simple Ira
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Re: What % of your income are you saving for retirement?

Postby Colorado13 » Tue Mar 12, 2013 10:22 pm

I am on track to invest 42% of gross this year, all tax deferred. This does not include employer contributions to my retirement plan.
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Re: What % of your income are you saving for retirement?

Postby zaboomafoozarg » Tue Mar 12, 2013 10:29 pm

frugalhen wrote:What would interest me is how many people invest beyond all tax deferred options (401k/iras etc) as well as spouses if applicable.

We save about 30% but that includes a 401k and a simple Ira


I try to save 10% of gross in addition to the 401k/Roth IRA so I have more options for early retirement.
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Re: What % of your income are you saving for retirement?

Postby Lollytiger » Wed Mar 13, 2013 2:05 am

How do people calculate their savings rate? I've tried to do this before but I always felt unsure of what it actually was. I tried to add up all my credit card bills for the year, multiply rent + some arbitrary number that approximates other bills by 12, add them together, compare to net worth change over the year. But this ignores things like investment appreciation and if your income includes bonuses, vested stock, anything that can be clawed back (and thus doesn't really belong to you) it gets hard to even figure out how much you got paid.

I'm pretty sure it's easier to save a high percentage on a large income, even if the percentage is vs gross although I'm inclined to calculate vs. net since one expects that if you save 30%, that means you spent 70%. And also because if someone says they save x% gross you have no idea how much of it was taxes. I just did the calculations and from last year to this year, where I made more, my savings rate went up approximately 12% (both net and gross, not sure if that means something is wrong with the calculations).
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Re: What % of your income are you saving for retirement?

Postby CharlieSue » Wed Mar 13, 2013 11:58 am

Did this out of curiosity, and with 2 maxed 401ks, 2 maxed backdoor Roth IRAs, plus assorted monthly savings we were at 40% of gross for 2012. 42% if you count employer contributions.

Out of net, which isn't really fair as 401ks are pre-tax, it would be more like 75%.

I am 26 and the future husband is 30. Based on conversations with my other half, if it were up to him alone we'd be at more like 10%...
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Re: What % of your income are you saving for retirement?

Postby origami » Wed Mar 13, 2013 12:09 pm

Lollytiger wrote:How do people calculate their savings rate?


I use mint.com.
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Re: What % of your income are you saving for retirement?

Postby Grt2bOutdoors » Wed Mar 13, 2013 12:16 pm

CharlieSue wrote:Did this out of curiosity, and with 2 maxed 401ks, 2 maxed backdoor Roth IRAs, plus assorted monthly savings we were at 40% of gross for 2012. 42% if you count employer contributions.

Out of net, which isn't really fair as 401ks are pre-tax, it would be more like 75%.

I am 26 and the future husband is 30. Based on conversations with my other half, if it were up to him alone we'd be at more like 10%...


If you want to have a decent shot at a decent retirement, 10% is not going to cut it unless your future husband is fine subsisting on rice and beans (perfectly healthy, but can get old after a while). Save while you can, unless your income and wage growth is assured over your lifetime (very rare).
"Luck is not a strategy" Asking Portfolio Questions
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Re: What % of your income are you saving for retirement?

Postby CharlieSue » Wed Mar 13, 2013 1:53 pm

Grt2bOutdoors wrote:
CharlieSue wrote:Did this out of curiosity, and with 2 maxed 401ks, 2 maxed backdoor Roth IRAs, plus assorted monthly savings we were at 40% of gross for 2012. 42% if you count employer contributions.

Out of net, which isn't really fair as 401ks are pre-tax, it would be more like 75%.

I am 26 and the future husband is 30. Based on conversations with my other half, if it were up to him alone we'd be at more like 10%...


If you want to have a decent shot at a decent retirement, 10% is not going to cut it unless your future husband is fine subsisting on rice and beans (perfectly healthy, but can get old after a while). Save while you can, unless your income and wage growth is assured over your lifetime (very rare).


Income and wage growth definitely not assured (as I am sure it isn't for most!). Prior to our engagement, he'd been saving 15% between 401k and IRA while I was at 50%+. We found a middle ground. I finally brought him around by pointing out that the 'worst case scenario' of over-saving is that we can pull back on saving later and enjoy life a bit more, while the 'worst case scenario' of under-saving wasn't really something we wanted to think about.
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Re: What % of your income are you saving for retirement?

Postby STC » Wed Mar 13, 2013 3:12 pm

33% Taxes (Estimated)
22%-32% Spending (including mortgage)
35-45% Savings Rate (Variable income)

I mainly focus on saving > $125k per year. After that I loosen up a bit... until the next year.
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Re: What % of your income are you saving for retirement?

Postby acegolfer » Tue Apr 02, 2013 6:18 pm

41 yrs old, 56% of gross.

My definition of saving rate = 1 - (consumption + expense) / gross.
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