There is no single magic number, but there are reliable guidelines that get you most of the way there. The earlier you start, the more the math works in your favor — thanks to compounding, time matters more than the exact amount.
Aim for 15% of your income
A widely used target is to save about 15% of your gross income for retirement, including any employer match. If you start in your twenties, 10–15% is usually enough; if you start later, you may need to push toward 20% or more to catch up.
Always capture the full employer match
If your employer matches 401(k) contributions — say, 50 cents per dollar up to 6% of pay — that is an immediate, guaranteed return on your money. Contributing at least enough to get the full match should be the first priority, before almost any other investing. Skipping it is leaving free money on the table.
Why starting early wins
Because returns compound, money invested in your twenties has decades to grow. Saving $500 a month from age 25 can produce a dramatically larger balance at 65 than the same $500 started at 40 — often more than double — even though you contributed for only 15 more years. The lesson: start now, even if the amount is small, and increase it over time.
Turn a target into a monthly number
Many people estimate the nest egg they will need, then work backward to a monthly savings amount. A common shortcut is the 4% rule: to withdraw $40,000 a year in retirement, you would aim for roughly $1,000,000 saved (40,000 ÷ 0.04). Our retirement calculator does this for you — it has separate modes to estimate how much you'll have, how much you need, how long your savings will last, and how much to save each month to hit a target.
Keep the assumptions realistic
Returns are never guaranteed, and inflation quietly erodes buying power, so treat any projection as a guide rather than a promise. Revisit your plan after big life events — a raise, a new child, a home purchase — and nudge your savings rate up whenever your income grows.
Ready to find your number? Open the retirement calculator and try each mode.