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-   -   What percentage of your salary are you saving towards retirement? (http://www.early-retirement.org/forums/f28/what-percentage-of-your-salary-are-you-saving-towards-retirement-56106.html)

dooo42 05-12-2011 06:50 PM

What percentage of your salary are you saving towards retirement?
Just curious how much people are putting away.

REWahoo 05-12-2011 06:53 PM


Originally Posted by dooo42 (Post 1069378)
Just curious how much people are putting away.

I had coffee and a danish for breakfast, a cheeseburger and fries for...

Oops. Sorry, wrong thread...

steelyman 05-12-2011 06:58 PM

Well, I am on the final push towards ER (will be submitting my resignation this coming Monday!), and for this year I am socking away 60% of my gross salary. Couldn't keep that up for long, though...

Klubbie 05-12-2011 07:01 PM

13% to 401K plus a 5% company match so 18% total. Another 8-9% into Roth IRA/taxable savings. So a total of around 26-29% or so.

aaronc879 05-12-2011 07:06 PM

It's difficult to say exactly but i'll give it a try. The easy part: 33% goes into 401K pre-tax. I'm left with about $32,000. ~20% of that goes to taxes leaving $25K(I rounded down). Of the $25K, $5K(or 20%) goes to ROTH IRA. Leaving $20K. Approx. $8K of that goes into cash savings for large future purchases and some will end up as retirement money but don't know how much. If I don't count any of the cash as retirement money then I guess i'm at a minimum of 53%(33% pre-tax,20% after tax). However $5K of that $8K will probably end up as retirement money so that's another 20% putting me at up to 73%. That's on an income of around $48K/yr pre-tax.

rockyj 05-12-2011 07:17 PM

For some time we have been doing:

~20% 403B supplemental
~11% Roth
6.25% Employee contrib to pension

May tighten the spending belt and add some more as we are coming down the home stretch.

Shawn 05-12-2011 07:31 PM

About 55% of my before-tax salary, and 80% of my after-tax salary.

hankster 05-12-2011 07:34 PM

~30% between 401k, Roth IRAs and taxable

SecondCor521 05-12-2011 07:39 PM

I save 108.8% of gross salary, depending on how you define things.

How? My gross salary is only a percentage of my total income, and I spend only a small percentage of my total income. Basically I spend somewhat less than my other income.


arebelspy 05-12-2011 07:45 PM

About 60%. We LwayBOM.

This may have been interesting as a poll.

chrisaukcam 05-12-2011 07:59 PM

Re: Percentage
Geeze I am a piker compared to the rest.

company matches 50% of first 6% so that means 9%

And then I actually did an extra 2% on top of that since they did the 2% rollback on the payroll taxes so that means a net of 11%

Plan to retire at 60. I think that I will able to swing it.

Retch The Grate 05-12-2011 08:07 PM

I do about 30%, it varies from year to year as once I fully fund my 401k and my Roth I don't have a hard and fast goal, some years just have more expenses to cover. I'd really like to get it up to 50%, but I don't really have any areas I'm willing to squeeze more than I already am and the Bay Area is expensive. Ah well.

martyb 05-12-2011 08:53 PM

35% from my salary to my TSP, no matching from Uncle Sam, my employer. 20% of my wife's pay into her 401k. I guess that's a total of around 42% of our combined income into tax-deferred 401k type accounts, plus whatever we can scrape up into our Vanguard Roth IRA's. Yep, it's tight...

Nords 05-12-2011 09:20 PM

For a couple of years in the late 1990s, spouse and I were saving over 80% of our take-home pay.

It wasn't that we were especially well compensated. It's that we were both either working or parenting, and those two activities were still cutting into time that we would rather have spent sleeping.

Halfway through the year 2000 spouse found our "dream home", and shortly after that our savings rate plummeted.

This post crunches the numbers on how much you'd have to save for how long to be financially independent:
How many years does it take to become financially independent? | Military Retirement & Financial Independence

Scroll down to the tables assuming 5% or 6% rates of return, or use the handy formula at the end of the post with your own projections.

supalong52 05-12-2011 09:21 PM

I should be saving over 80% this year after taxes. I spend < $30K a year, but make over $275K. Probably a little extreme, but my job is not really sustainable for the long term if you want to have a life.

Animorph 05-12-2011 09:35 PM

I like 15%, excluding employer match, starting with your first job. That's what I recommended to DS. Should be able to pull an early house downpayment out of that and retire in your 50's while maintaining your lifestyle. Obviously dependent on investment returns and salary increases, so adjust lifestyle as necessary by switching to inflation-only spending adjustments as retirement approaches instead of increasing to match pay raises.

Wish I had done that. Instead I had to depend on stock options. A little luck is always good.

Ronstar 05-12-2011 09:49 PM

35% in my 401k - not much $ working 3 days a week

palomalou 05-12-2011 09:59 PM

33% of gross.

sally123 05-12-2011 10:00 PM

I'm doing 10% to the company plan with 100% match and 5% to 401K, that's 25% pretax. Then ROTH IRA and the same amount for investiment. I think total ~35%.

Major Tom 05-12-2011 10:18 PM

My savings rate varied greatly while I was working - from zero up to about 30% of gross at peak. During the years I was saving nothing, I was buying and selling houses, the profits from which ended up going into my taxable account, so I was saving in effect, but not into tax-deferred accounts.

I've always looked for opportunities to either spend less, save more, or take advantage of promising investment opportunities - just not necessarily all at the same time.

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