What do experts say should be the combined employee/employer amount put into a 401(k) each year?
Fifteen to 18 percent of salary, every year, for 30 years is the recommendation from most experts. Most advise having roughly ten times annual pay accumulated in a 401(k)-style plan by retirement time. Today, most workers nearing retirement have two to three times annual pay saved up in retirement accounts. That amount will allow them to maintain their pre-retirement standard of living for about seven to eight years, at a time when life expectancy past retirement age is 17 years.
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- What do experts say should be the combined employee/employer amount put into a 401(k) each year?
