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Retirement savings is modeled as a recurring monthly contribution, weighed against your income and any existing debt, to see how much room a given savings target would leave in your budget today.
These key factors affect retirement affordability
Income and expenses
A savings goal only works if it fits alongside your current bills and debt - we weigh the monthly amount you enter against your whole financial picture, not your income in isolation.
Employer match
If your employer matches a percentage of your retirement contributions, that's often described as the closest thing to free money in personal finance - it's generally worth capturing the full match before optimizing anything else.
Savings rate guideline
A common rule of thumb is aiming for around 15% of income toward retirement over your working life, though the right number for you depends on when you started and when you'd like to stop working.
Time horizon and compounding
Starting earlier means each dollar has more time to grow, so a smaller monthly amount started sooner can outperform a larger amount started later.
Account types
401(k)s, traditional IRAs, and Roth IRAs each come with different tax treatment and contribution limits - worth understanding which combination fits your situation before settling on a monthly number.
How to use your results
Try a few different monthly contribution amounts:
- The amount needed to capture your full employer match, if you have one.
- A higher amount to see how much room it would actually leave.
- Alongside your existing debt, for a realistic sense of what's sustainable long-term.
Ways to increase how much you can save
- Capture the full employer match first - it's the highest-return move available to most savers.
- Automate contributions so they happen before you have a chance to spend that money elsewhere.
- Increase your contribution percentage with each raise, before your budget adjusts to the new income.
- Pay down high-interest debt to free up more room for savings.
- Take advantage of catch-up contributions once you're eligible.
Nothing added yet - add something to see your risk.
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