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View Poll Results: What %age of household gross income do you save per year? include pre & post tax
1-5% 6 3.11%
6-10% 5 2.59%
11-15% 9 4.66%
16-20% 14 7.25%
21-25% 21 10.88%
26-30% 26 13.47%
31-35% 22 11.40%
36-40% 17 8.81%
41%+ 73 37.82%
Voters: 193. You may not vote on this poll

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Old 05-19-2012, 12:38 PM   #41
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Roth IRA Max of $6,000 (includes catch-up contributions). Funded from Savings Acct.
I don't think funding an IRA from a savings account would be appropriate to count when determining the % of salary that you save. You are just shifting assets you have already saved from one investment vehicle to another.
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Old 05-19-2012, 12:41 PM   #42
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I am amazed at the amount/percentage of income that people are saving here. I just did a back of the envelope calculation, and came up with 33% of gross (38% if you include employer contributions). No wonder the economy can't get any legs under it--all you guys savings 50%+ of income are killing us!! LOL
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Old 05-19-2012, 01:04 PM   #43
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The OP can correct me if desired, but my understanding was that "gross income" means the original amount, which is indeed an illusory number for all of us.
Illusory indeed. Ours: a bit over 70% of net and a bit less than 50% of gross.
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Old 05-19-2012, 01:09 PM   #44
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I'm 30, and we put away ~25% of our gross income. However, we're paying double mortgage payments to pay it down, on top of triple payments on student loans (which disappear this summer, yay!). I'm envious of those who dump 50% into savings. Reading these forums makes me feel like a schmuck, knowing that our income is 170k-ish. Living in a high-cost area is brutal though. Our modest 40yr old townhome was 400k! Cripes. We'll be getting out of dodge whenever we retire... hopefully cashing in on some equity. Unfortunately, our home is one of our main investment vehicles.
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Old 05-19-2012, 02:01 PM   #45
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In our case the % went up this year. DW retired last year and we're saving the same amount of $ on less income . The plan is to save less and enjoy ourselves more. However, old habits die hard.
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Old 05-19-2012, 02:05 PM   #46
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This thread started one on ERE.

What Percent of Gross Income Saved? Early Retirement Extreme Forums

It's inspiring what some on ERE save (though some figure it as net instead of gross). Without including P of the P&I, and not including extra principal payments, I saved 32% of gross (line 22 on the 1040).
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Old 05-19-2012, 03:12 PM   #47
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We max out on our 401K ($50,000) and Roth IRA ($12,000).
How do you do that? My plan allows me to only do 15% a year up to15,000 and my employer contributes profit sharing up to 15,000.
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Old 05-19-2012, 07:18 PM   #48
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Sounds like a solo 401k.
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Old 05-19-2012, 07:50 PM   #49
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I'm currently at approx. 31% but will soon pay off my house and then up it to roughly 50% for the time being. Unfortunately I really don't like my house/neighborhood so I'm itching to buy in another area and will likely spend more than this house and may finance some of it so the 50% may be short-lived.
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Old 05-20-2012, 04:58 PM   #50
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Since I retired several years ago, my "savings program" consists of transferring any cash over $1000 in my checking account each month to my savings account. I always do this after I reconcile the checkbook.
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Old 05-21-2012, 12:02 PM   #51
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How do you do that? My plan allows me to only do 15% a year up to15,000 and my employer contributes profit sharing up to 15,000.
Some older Mega Corps allow After Tax contributions to the 401(k)s in addition to the more common Pre Tax contributions.

My Mega Corp allows up to 50% of Salary to be deferred into the 401(k) each year. The IRS limit of total contributions (currently $50,000/year in 2012) needed to be complied with. Only $17,000, however can be Pre Tax contributions.
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Old 05-21-2012, 03:12 PM   #52
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I am in the 41%+ category. Home is paid for and although I make a better than average salary, in alot of ways I live like a miser LOL. Best of both worlds. My car is 12 years old and I have no interest in replacing it for example. Works great, why would I?

I am hoping this will enable me to retire at 45 or at the very least enter the world of contract work at that age and ride that out until 50. There has to be some upside for living like this!
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Old 05-21-2012, 05:20 PM   #53
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I am in the 41%+ category. Home is paid for and although I make a better than average salary, in alot of ways I live like a miser LOL. Best of both worlds. My car is 12 years old and I have no interest in replacing it for example. Works great, why would I?

I am hoping this will enable me to retire at 45 or at the very least enter the world of contract work at that age and ride that out until 50. There has to be some upside for living like this!
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Old 05-22-2012, 01:24 PM   #54
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I'm saving 38% but I'm retired. I double checked it because it seems so high but it is correct. When I was working I saved about 45% but then I had a mortgage to pay so that cut into what I could save. When I start SS it'll probably be back into the 45% range.
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Old 05-22-2012, 02:09 PM   #55
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Originally Posted by veremchuka
I'm saving 38% but I'm retired. I double checked it because it seems so high but it is correct. When I was working I saved about 45% but then I had a mortgage to pay so that cut into what I could save. When I start SS it'll probably be back into the 45% range.
How exactly does one "save" during retirement? Is your passive income high enough to pay for expenses and high enough to put 38% away? Nice.
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Old 05-22-2012, 03:00 PM   #56
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How exactly does one "save" during retirement? Is your passive income high enough to pay for expenses and high enough to put 38% away? Nice.
I answered similarly to veremchuka (#26) and for me the answer to your question is "yes."
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Old 05-22-2012, 04:15 PM   #57
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It would be interesting to see what % people save based on income... Someone who makes $1m/year can easily save 50% of gross, but someone making $70K may have trouble doing that.
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Old 05-22-2012, 04:27 PM   #58
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It would be interesting to see what % people save based on income... Someone who makes $1m/year can easily save 50% of gross, but someone making $70K may have trouble doing that.
I was thinking the other way - - that the guy making $1M/year is probably in a much higher tax bracket than I was with just a five figure salary, so for him a bigger percentage is skimmed right off the top before he ever see it. But either way, I'm sure that individual financial situations and obligations probably vary tremendously. Imagine the difference between my situation as a single, and that of someone living on the same salary with a disabled wife and six kids to support, and/or alimony, or caregiver responsibilities for aged relatives.
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Old 05-22-2012, 05:06 PM   #59
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Where are the negative % options? Since I retired 10 years ago the money is coming out - not going in!
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Old 05-22-2012, 05:19 PM   #60
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Where are the negative % options? Since I retired 10 years ago the money is coming out - not going in!
I'm impressed by the retirees on this thread who are still saving. I'm certainly in the "negative %" club.

Here is a thread from a few months ago where some retirees shared their actual withdrawal rates since retiring.

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