What % of your income are you saving for retirement?

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

Postby rob » Thu Feb 07, 2013 7:20 pm

Goes up and down each year and I am limited to 10% in my 401K. Most years we manage to max out both Roth's and some years we barely get anything into the Roth's. That makes me an outlier in this conversation but I think compared to most in the real world I do okay. It was far higher before we had kids & dropped to a single salary, so had a faster rate for a few years at the start where it was 40% or so.
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Re: What % of your income are you saving for retirement?

Postby minesweep » Thu Feb 07, 2013 7:35 pm

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

Postby WorkToLive » Thu Feb 07, 2013 7:44 pm

We save 21.4% of gross into tax-deferred retirement accounts. This year we are using 25% of our gross pay to pay off our mortgage (ages 39/38). An additional 3.3% goes to college savings for our one child. Next year, our retirement savings percentage is slated to rise to at least 30% of gross.
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Re: What % of your income are you saving for retirement?

Postby hoppy08520 » Thu Feb 07, 2013 7:50 pm

Struggling to get to 30% of gross. I am in my early forties. Last year was 20%, was around ~15% for several years before that, up from around 10% since I started working. If I can just keep this upward saving trend going...
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Re: What % of your income are you saving for retirement?

Postby bottomfisher » Thu Feb 07, 2013 8:04 pm

I'm very impressed with everyone here savings rates. I presume the rest of the US is not anywhere near this rate. I Googled it quickly but didn't see a straightforward answer/rate. My income varies month to month. But I'm only at about 10 - 12%. I personally could easily save more, but my wife seems to always have another major purchase of some sort or the other
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Re: What % of your income are you saving for retirement?

Postby tacster » Thu Feb 07, 2013 8:09 pm

Around 45% of gross, not including mortgage, extra mortgage payments, or employer 401k match.
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Re: What % of your income are you saving for retirement?

Postby Johm221122 » Thu Feb 07, 2013 8:25 pm

25% of gross
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Re: What % of your income are you saving for retirement?

Postby jvclark02 » Thu Feb 07, 2013 8:52 pm

60% :oops:
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Re: What % of your income are you saving for retirement?

Postby Paul78 » Thu Feb 07, 2013 8:57 pm

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

Postby dharrythomas » Thu Feb 07, 2013 8:59 pm

I don't do the math:

10% of civilian job to Roth TSP
15% of Army Reserve salary to TSP (Roth option not available yet)
~2.5% of take-home to taxable
Max 2xRoth IRAs
90% of my mortgage is principal

50

And that doesn't include the 2 defined benefit pensions or the 5% match on the Civilian TSP

My wife thinks we're crazy.

When we get the house paid off, this year, I'm going to 15% Roth TSP and ~7.5% of take-home. The wife can spend the other 2/3 of the mortage/something to make us both happy. :D
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Re: What % of your income are you saving for retirement?

Postby EmergDoc » Thu Feb 07, 2013 9:02 pm

It varies a lot depending on what you use for the numerator and the denominator, but I'm usually between 20 and 30% toward retirement.
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Re: What % of your income are you saving for retirement?

Postby pennstater2005 » Thu Feb 07, 2013 9:08 pm

10-15% for retirement. We are still saving for a kitchen remodel and paying down other debt so it will increase over the next few years.
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Re: What % of your income are you saving for retirement?

Postby iceman99 » Thu Feb 07, 2013 9:17 pm

About 30% gross
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Re: What % of your income are you saving for retirement?

Postby rr2 » Thu Feb 07, 2013 9:27 pm

I'm curious how those who save over 50% of gross do it. Taxes (federal+state+payroll) alone comprise about 20% of our gross income. Therefore total expenses must be less than 30% of gross income. Amazing!!!
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Re: What % of your income are you saving for retirement?

Postby reggiesimpson » Thu Feb 07, 2013 9:35 pm

Save as much as you can when you can. If thats 90% of income then so be it. As another poster said "Make hay while sun the shines"
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Re: What % of your income are you saving for retirement?

Postby Grt2bOutdoors » Thu Feb 07, 2013 9:50 pm

rr2 wrote:I'm curious how those who save over 50% of gross do it. Taxes (federal+state+payroll) alone comprise about 20% of our gross income. Therefore total expenses must be less than 30% of gross income. Amazing!!!


Sacrifice. My mother would always tell me "either you pay now or you pay later" - I took her advice and pay now. I've seen what happens to those who don't prepare, I want to avoid that.
It helps to have two incomes, live on the lower one, save the higher one. We live far below our means - still, it's important to have balance, I don't want to be that guy who was a miser and never enjoyed life.
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Re: What % of your income are you saving for retirement?

Postby Grt2bOutdoors » Thu Feb 07, 2013 9:50 pm

reggiesimpson wrote:Save as much as you can when you can. If thats 90% of income then so be it. As another poster said "Make hay while sun the shines"


+1 - Thanks Reggie! :beer
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Re: What % of your income are you saving for retirement?

Postby blumby » Thu Feb 07, 2013 10:09 pm

Wife and I are 25 - we save about 12-13% ourselves and my company contributes 10% (6% match and 4% in lieu of pension). I'm hoping to bump up my 401k contribution a few percent this year if we can swing it. :greedy
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Re: What % of your income are you saving for retirement?

Postby rr2 » Thu Feb 07, 2013 10:29 pm

Grt2bOutdoors wrote:
rr2 wrote:I'm curious how those who save over 50% of gross do it. Taxes (federal+state+payroll) alone comprise about 20% of our gross income. Therefore total expenses must be less than 30% of gross income. Amazing!!!


Sacrifice. My mother would always tell me "either you pay now or you pay later" - I took her advice and pay now. I've seen what happens to those who don't prepare, I want to avoid that.
It helps to have two incomes, live on the lower one, save the higher one. We live far below our means - still, it's important to have balance, I don't want to be that guy who was a miser and never enjoyed life.

Great advice. My grandparents lived with us and used to tell us stories (sometimes with financial morals) when I was little. In my mid-40s, I can still recall some of those parables.

I did go back and look at our budget which roughly looks like

Taxes (includes Federal+state+payroll) -- 20%
401K+IRA contributions -- 40%
Budgeted expenses -- 30%

The remaining 10% goes to mortgage prepayments and taxable savings for intermediate term needs.
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Re: What % of your income are you saving for retirement?

Postby Juniormint » Thu Feb 07, 2013 10:30 pm

Early twenties, single. And I save about 55% of gross just for retirement. I save another 5% for other items.
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Re: What % of your income are you saving for retirement?

Postby wingnutty » Thu Feb 07, 2013 10:35 pm

around 20-25% gross, age 32 with 2 kids and twins on the way.

Saving might get knocked down a bit with day care costs over the next few years :?
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Re: What % of your income are you saving for retirement?

Postby crowd79 » Thu Feb 07, 2013 10:39 pm

The more I can save in my early years like right now at 33 years of age, the more time my money has to grow and compound later in life. Everyone should save every dime they can and sock it away into retirement in their 20's and 30's. I want to be able to have a good, comfortable retirement, and not worry about whether or not Social Security is there or not, because it probably won't be.
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Re: What % of your income are you saving for retirement?

Postby reggiesimpson » Thu Feb 07, 2013 10:41 pm

crowd79 wrote:The more I can save in my early years like right now at 33 years of age, the more time my money has to grow and compound later in life. Everyone should save every dime they can and sock it away into retirement in their 20's and 30's. I want to be able to have a good, comfortable retirement, and not worry about whether or not Social Security is there or not, because it probably won't be.

+1 Smart thinking!
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Re: What % of your income are you saving for retirement?

Postby Candor » Thu Feb 07, 2013 10:56 pm

45 years old, single and just paid off the mortgage last month so that helped to bump it up to roughly 45% of gross. I'm conflicted as to whether I'm overdoing the savings because it would be nice to have some extra cash to travel and enjoy hobbies a little more but this place and ER.org help keep me on track. Only here would I feel like an underachiever. I better not kick the bucket early! :oops: :D
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Re: What % of your income are you saving for retirement?

Postby BHCadet » Thu Feb 07, 2013 10:59 pm

33% of gross earned incomes with one in college.
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Re: What % of your income are you saving for retirement?

Postby bmelikia » Thu Feb 07, 2013 11:16 pm

16.16% - doesn't include the match component of my 401k

Based on 2012 company match (Roth IRA + 401k + Company Match) = 27.0%

I'd like to increase contributions down the road but I am attempting to save more money towards the purchase of a first home for myself.
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Re: What % of your income are you saving for retirement?

Postby bmelikia » Thu Feb 07, 2013 11:19 pm

Juniormint wrote:Early twenties, single. And I save about 55% of gross just for retirement. I save another 5% for other items.


Certainly good to save for retirement but don't forget to save for a house -->> of course, that only assumes you WANT to buy a house.

As the saying goes. . .don't put all your eggs in one basket.

But congrats on a good start.
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Re: What % of your income are you saving for retirement?

Postby hoppy08520 » Thu Feb 07, 2013 11:21 pm

Candor wrote:Only here would I feel like an underachiever

LOL! That's why I come here and Mr Money Mustache. Until a year ago I was smug about saving around 10-15%. I kept reading that Americans are saving around 1% so I must be doing ok, right? Then you read about all these Bogleheads saving 50% or more and you feel like you're a reckless materialist consumer. Thanks to this site I first figured out my investing and now I'm focusing on the spending/saving side of the equation.
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Re: What % of your income are you saving for retirement?

Postby stoptothink » Thu Feb 07, 2013 11:32 pm

Grt2bOutdoors wrote:
rr2 wrote:I'm curious how those who save over 50% of gross do it. Taxes (federal+state+payroll) alone comprise about 20% of our gross income. Therefore total expenses must be less than 30% of gross income. Amazing!!!


Sacrifice. My mother would always tell me "either you pay now or you pay later" - I took her advice and pay now. I've seen what happens to those who don't prepare, I want to avoid that.
It helps to have two incomes, live on the lower one, save the higher one. We live far below our means - still, it's important to have balance, I don't want to be that guy who was a miser and never enjoyed life.


My overall expenses are less than $1k/month. Probably not a lot of people in my income bracket who have 3 roommates, commute almost exclusively by bike, literally never eat out, etc. Grew up very poor and then was a full-time college student for an entire decade, I see no reason to significantly change my lifestyle just because I now have a decent income...my ex-wife did not agree.
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Re: What % of your income are you saving for retirement?

Postby zaboomafoozarg » Fri Feb 08, 2013 12:06 am

About 50% of gross, give or take a few.
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Re: What % of your income are you saving for retirement?

Postby WhiskeyJ » Fri Feb 08, 2013 12:10 am

I went from 50% when I was single and 35 to about 10% over three years after getting married and having two kids in a short time period. Sometimes I think we over did it on the house (4 times as expensive as the one we were renting 5 years ago), although only 15% of our gross goes toward the mortgage payment. Daycare for two is quite pricey.
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Re: What % of your income are you saving for retirement?

Postby texasdiver » Fri Feb 08, 2013 12:46 am

We max out two 403(b) accounts, two Roths, and a family HSA. That comes to about about 25% of gross. No employer matches but my wife's employer puts an amount equal to about 8-10% of her salary into a separate profit sharing account and my employer has a decent defined benefit pension. With both of those included we are probably at around 40% of gross.
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Re: What % of your income are you saving for retirement?

Postby Sriracha » Fri Feb 08, 2013 12:51 am

EmergDoc wrote:It varies a lot depending on what you use for the numerator and the denominator, but I'm usually between 20 and 30% toward retirement.


I hear you on that first part, E-doc!
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Re: What % of your income are you saving for retirement?

Postby dianna » Fri Feb 08, 2013 1:11 am

Depends on self-employment income each year, but we max Big-Company 401k, self-employed 401k (to max allowable; this year $51,000), Backdoor Roth 401k, HSA, Coverdell. Then contribute to taxable accounts, 529s, etc from there. House scheduled for early payoff.

One may say that Coverdells and 529s aren't really for retirement, but contributing to those now does mean lower expenses during retirement, which is why I still listed them here.

Generally, 20-25% for specific retirement plans; estimate up to 35% if one includes educational plans.
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Re: What % of your income are you saving for retirement?

Postby grokzilla » Fri Feb 08, 2013 2:06 am

25% for me in a SEP and about 20% for the wife in tax deferred. Then we vary the taxable each year but usually another 15-20%. Total is about 35% or so. We're 42.
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Re: What % of your income are you saving for retirement?

Postby HornedToad » Fri Feb 08, 2013 2:40 am

Counting company match it's around or just under~15%.

A good chunk of savings right now is just general/taxable savings instead of for retirement.
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Re: What % of your income are you saving for retirement?

Postby 555 » Fri Feb 08, 2013 4:03 am

67%
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Re: What % of your income are you saving for retirement?

Postby Padlin » Fri Feb 08, 2013 7:33 am

This says a lot about the disposable income level of the members. Most younger couples I know are in the area of 10% even with company matches. Percentages rise towards 30% as others near retirement, spending drops and income rises.
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Re: What % of your income are you saving for retirement?

Postby Bustoff » Fri Feb 08, 2013 7:59 am

We are retired now, but we always maxed out our 401k's and then saved about the same amount on top of that.
We were "dink's" so that allowed us to save much more than our friends with chitlins. :happy
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Re: What % of your income are you saving for retirement?

Postby Call_Me_Op » Fri Feb 08, 2013 8:39 am

Approximately 68% of gross.
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Re: What % of your income are you saving for retirement?

Postby skylar » Fri Feb 08, 2013 9:59 am

Discounting the HSA savings, about 60%. With the HSA, about 67%.

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

Postby boknows » Fri Feb 08, 2013 10:49 am

Grt2bOutdoors wrote:
rr2 wrote:I'm curious how those who save over 50% of gross do it. Taxes (federal+state+payroll) alone comprise about 20% of our gross income. Therefore total expenses must be less than 30% of gross income. Amazing!!!


Sacrifice. My mother would always tell me "either you pay now or you pay later" - I took her advice and pay now. I've seen what happens to those who don't prepare, I want to avoid that.
It helps to have two incomes, live on the lower one, save the higher one. We live far below our means - still, it's important to have balance, I don't want to be that guy who was a miser and never enjoyed life.


Sacrifice and/or higher income. Seeing as we just did our taxes last night, here's our situation:

~$150k gross income
5,964 State Tax
17,723 Federal Tax
~$9300 SS tax
~$2175 medicate tax
~$1300 in health insurance premiums
Roughly $113k net

To save 50% gross, you're saving $75k (which includes employer matches) and living off ~$40-55k (depending on those matches). Not entirely impossible.
32 - Married - Aiming for FI/ER in early 40s.
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Re: What % of your income are you saving for retirement?

Postby LowER » Fri Feb 08, 2013 10:49 am

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

Postby Go Blue 99 » Fri Feb 08, 2013 11:01 am

For retirement, we do 15% of gross including vested employer match.

We also save another 10% of gross for other things (future baby expenses, business investments, etc).
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Re: What % of your income are you saving for retirement?

Postby aceoperations » Fri Feb 08, 2013 11:06 am

We're a single income household, and save about 33-38% of gross income into tax-advantaged accounts and i-bonds.
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Re: What % of your income are you saving for retirement?

Postby Bacchus01 » Fri Feb 08, 2013 11:35 am

I look at it both gross and net.

Included in the "savings" I include: 401K contribtion, 401K match, after-tax investment contributions, and principal payments on two homes. I do look at my homes as retirement as I plan to liquidate both of them at retirement.

Of net take-home pay, the above is 85%.
Of gross pay, the above is 55%

I don't calculate it on total income (investment returns) but if I did, it would be higher since 100% of investment returns are re-invested.

I am 39, married, and have 3 kids who are 4, 7, and 11.
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Re: What % of your income are you saving for retirement?

Postby Bacchus01 » Fri Feb 08, 2013 11:39 am

rr2 wrote:I'm curious how those who save over 50% of gross do it. Taxes (federal+state+payroll) alone comprise about 20% of our gross income. Therefore total expenses must be less than 30% of gross income. Amazing!!!


Having a very high gross income helps.
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Re: What % of your income are you saving for retirement?

Postby scone » Fri Feb 08, 2013 11:54 am

rr2 wrote:I'm curious how those who save over 50% of gross do it. Taxes (federal+state+payroll) alone comprise about 20% of our gross income. Therefore total expenses must be less than 30% of gross income. Amazing!!!

I'm not going to lie to you, it's not fun. Thrift shop furniture, used books, cheap clothes, cheap haircuts, cheap restaurants, cheap food, cheap wine, old cars, a new computer once a decade. We do most of the work around the place ourselves-- I have my own chain saw. We sleep on a mattress on the floor. We have no curtains, no rugs, few pictures or ornaments. We keep the heat way down, take short showers. We had a cheap wedding. No engagement ring. My wedding band is a silver one I bought for $15 at Kroger's, on sale. When we do go on "vacations," it's usually to a relative's funeral.

We've been living like this for more than 20 years. The upside is, we're pretty much financially independent. The downside is, it's often downright uncomfortable and constraining. I'm actually embarrassed to have guests. I think if we had saved a little less and invested a little more, instead of just staying in cash, we would be in better shape now, financially and psychologically. So, FWIW, my advice is to invest-- don't spend your entire life eating peanut butter and reusing tea bags!
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Re: What % of your income are you saving for retirement?

Postby hoppy08520 » Fri Feb 08, 2013 12:27 pm

scone wrote:
rr2 wrote:I'm curious how those who save over 50% of gross do it. Taxes (federal+state+payroll) alone comprise about 20% of our gross income. Therefore total expenses must be less than 30% of gross income. Amazing!!!

I'm not going to lie to you, it's not fun. Thrift shop furniture, used books, cheap clothes, cheap haircuts, cheap restaurants, cheap food, cheap wine, old cars, a new computer once a decade. We do most of the work around the place ourselves-- I have my own chain saw. We sleep on a mattress on the floor. We have no curtains, no rugs, few pictures or ornaments. We keep the heat way down, take short showers. We had a cheap wedding. No engagement ring. My wedding band is a silver one I bought for $15 at Kroger's, on sale. When we do go on "vacations," it's usually to a relative's funeral.

We've been living like this for more than 20 years. The upside is, we're pretty much financially independent. The downside is, it's often downright uncomfortable and constraining. I'm actually embarrassed to have guests. I think if we had saved a little less and invested a little more, instead of just staying in cash, we would be in better shape now, financially and psychologically. So, FWIW, my advice is to invest-- don't spend your entire life eating peanut butter and reusing tea bags!

Scone, thank you, your post was quite humorous, thank you for the perspective. I have been trying to get much thriftier in the last year. While I haven't reused tea bags, I have been known to brew a second pot of coffee with the same used coffee grounds as the first pot...now that's a sacrifice!
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Re: What % of your income are you saving for retirement?

Postby Harold » Fri Feb 08, 2013 12:41 pm

Bacchus01 wrote:
rr2 wrote:I'm curious how those who save over 50% of gross do it. Taxes (federal+state+payroll) alone comprise about 20% of our gross income. Therefore total expenses must be less than 30% of gross income. Amazing!!!


Having a very high gross income helps.

It doesn't even need to be very high, nor does it need to be a sad life of deprivation.

It pretty much comes down to recognizing how inexpensive the true basic needs are, and recognizing how little consumption has to do with happiness. That true number is pretty low (by our standards, but not by statistical income measures), say $30K. When someone knows how to live on $30K (or whatever the number is) and realizes that spending more than that isn't "living better" -- then it's easy to save big amounts when the incomes are $60K, $70K, $100K, etc.
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