When you figure your savings for retirement do you count what your employer matches? For I stance, you want to save 15% of your income and you get a 5% match. Do you save 10% plus their 5? Or do you save 15% and the match is just gravy?
When you figure your savings for retirement do you count what your employer matches? For I stance, you want to save 15% of your income and you get a 5% match. Do you save 10% plus their 5? Or do you save 15% and the match is just gravy?
you want to save 15% of your income and you get a 5% match. Do you save 10% plus their 5? Or do you save 15% and the match is just gravy?
I personally would count employer match, although perhaps only counting the vesting portion would make the most sense.
mickeyd said:You're looking at it the wrong way.
Save as much as you can afford to save using dollar amounts (today's dollar). Look toward the finish line, not the part of the track that the horse in running on now. It's all about how much you have at the end of the race.
If you can afford to save 15% (or dollar amount equivalent), go for the gravy.
When you figure your savings for retirement do you count what your employer matches?
What is this "employer match" of which you speak? :-(
The analysis targets that I have seen include the company match as part of your savings. So if you save 10% and the company match is another 5% then you are saving at a 15% target.
By the way, If you choose to save significantly more, then your options as you get somewhat older are large.
What I read is to...
save 10% for a bare bones retirement when you are old
save 15% for a comfortable retirement when you are old
save 20-50% to escape young and/or to have a very comfortable retirement
If you started saving late, then you'll have to increase the savings targets to make up for lost time.
During our accumulation years, I/DW never counted any employer match....The employee match was such a small part of our overall saving/investing rate it was not really worth counting or worrying about. We just considered it "gravy" to our total retirement saving/investment plan.