Ask how to save for retirement and you’ll hear the same advice: put money away and leave it alone. That leaves the real questions open. How much is enough? Which account comes first? What if you’re starting at 50?
A good rule of thumb is to save about 15% of your income, including any employer match. Start with the 401(k) match and fill tax-advantaged accounts in a set order. Then automate the deposits and raise your rate as your pay grows. The sections below walk through each step.
How Much Should You Save for Retirement?
Most people need to save 15% of their income for retirement, counting any employer contributions, according to Fidelity. That rate is built to replace enough of your paycheck to keep your lifestyle once Social Security is added in.
Many savers fall short of that mark. The average 401(k) participant saved 7.6% of pay in 2025, according to Vanguard’s How America Saves 2026 report. Counting employer contributions, the average reached 12.1%.
Fidelity also suggests savings milestones by age, as multiples of your salary:
| Age | Savings target | On a $80,000 salary |
|---|---|---|
| 30 | 1x salary | $80,000 |
| 40 | 3x salary | $240,000 |
| 50 | 6x salary | $480,000 |
| 60 | 8x salary | $640,000 |
| 67 | 10x salary | $800,000 |
Source: Fidelity Investments, How much do I need to retire? Dollar figures are Boldin’s illustration.
Rules of thumb are a starting point. Your own number depends on what you’ll spend, when you’ll retire, and what income you’ll have. Our guide to how much you should save for retirement covers six ways to find it. You can also compare yourself with average retirement savings by age.
Where Should You Save for Retirement?
Save for retirement in tax-advantaged accounts first, in an order that captures free money and the biggest tax breaks before anything else. For most people, that retirement account contribution order looks like this:
- Your 401(k) up to the full employer match. A match is an instant return you can’t get anywhere else.
- A health savings account, if you’re eligible. HSA money goes in tax-free, grows tax-free, and comes out tax-free for medical costs.
- A Roth or traditional IRA. An IRA gives you more investment choices than most workplace plans.
- Back to your 401(k), up to the annual limit. Teachers and nonprofit workers can use a 403(b) the same way.
- A taxable brokerage account. It has no contribution limit and no withdrawal rules, which makes it useful for goals before 59½.
Self-employed? A solo 401(k) lets you contribute as both employee and employer. If your job offers no plan, many states now run automatic IRA programs, like CalSavers in California.
2026 Retirement Contribution Limits
The IRS raised most retirement contribution limits for 2026. Here’s how much you can put into each account:
| Account | 2026 limit | Age 50+ catch-up | Ages 60 to 63 |
|---|---|---|---|
| 401(k), 403(b), and most 457 plans | $24,500 | $8,000 | $11,250 |
| Traditional or Roth IRA | $7,500 | $1,100 | $1,100 |
| SIMPLE IRA | $17,000 | $4,000 | $5,250 |
| Health savings account | $4,400 self-only, $8,750 family | $1,000 (age 55+) | $1,000 (age 55+) |
Sources: IRS Notice 2025-67 and Rev. Proc. 2025-19.
Two other 2026 rules matter. If you earned more than $150,000 in FICA wages in 2025, any 401(k) catch-up contributions must go in as Roth. Roth IRA eligibility also phases out between $153,000 and $168,000 of income for single filers. For married couples, the range is $242,000 to $252,000. Our guide to 2026 catch-up contribution limits has the details.
Should You Save in a Roth or a Traditional Account?
A Roth account makes sense if you expect your tax rate in retirement to match or beat today’s. If you expect it to drop, traditional contributions save more. Traditional contributions cut your taxes today, and you pay tax on withdrawals later. Roth contributions are taxed now and come out tax-free in retirement.
Many savers split the difference and use both, which gives them more control over taxes in retirement. Roth 401(k)s have no income limits, so high earners can use one even when a Roth IRA is off the table. If you’re choosing between accounts, our comparison of a 401(k) and a Roth IRA walks through the tradeoffs.
How Can You Save More for Retirement?
You can save more for retirement by automating it and redirecting money you won’t miss. These moves work for most budgets:
Automate every contribution. In plans with automatic enrollment, 94% of workers participate, according to Vanguard. When workers have to sign up on their own, 64% do. Set it up once and let payroll do the work.
Save part of every raise. Bump your contribution by 1% each year or with each raise. In the Save More Tomorrow study, workers who signed up for automatic increases went from saving 3.5% to 13.6% within 40 months.
Redirect payments that end. When a car loan or credit card is paid off, send the same amount to savings. You’re already living without it.
Save windfalls. Put tax refunds, bonuses, and gifts into an IRA or brokerage account before they blend into checking.
Cut the big three. Housing, transportation, and food take most of a typical budget. One change there, like keeping a paid-off car three more years, frees up more than dozens of small cuts.
Use life changes. When kids leave home or tuition ends, an empty nest can free up hundreds a month.
These work best as habits, and our guide to good financial habits covers how to make them stick. For more on workplace benefits, see these ways to supercharge your savings while you’re still working.
Why Does Starting Early Matter?
Starting early matters because compound growth does most of the work over long periods. Saving $500 a month from 35 to 67 at a 6% return grows to about $579,000. Starting the same habit at 45 leaves you with about $273,000, less than half as much.
Most of that gap is growth. The early saver puts in $60,000 more and ends up with about $306,000 more. Our guide to compound interest shows how the math works.
Is It Too Late to Start Saving at 50?
It’s not too late to start saving at 50, and catch-up limits help. A 55-year-old who puts $32,500 a year into a 401(k) and earns 6% could have about $565,000 by 67. That includes the larger catch-up contributions allowed from 60 to 63.
Late starters can also work a few more years, delay Social Security, or trim planned spending in retirement. Our real-life guide to starting at 50 or later shows how others have done it.
Do You Have Old Retirement Accounts to Find?
You may have retirement money you’ve forgotten about. Old 401(k)s get left behind when people change jobs, and some get moved to providers you don’t recognize. Our guide to finding a lost 401(k) covers the free databases to search.
Once you find an old account, consider rolling it over into an IRA or your current plan. Fewer accounts make it easier to track your savings and keep your investments in line with your plan.
Can You Save Too Much for Retirement?
You can save too much for retirement if it costs you things that matter now and leaves you with far more than you’ll spend. That’s rarer than undersaving, but it happens to disciplined savers. If you’re well ahead of the milestones above, read whether you’re saving too much for retirement before you raise your rate again.
Keep an emergency fund outside your retirement accounts too. It keeps a surprise bill from turning into an early withdrawal with taxes and penalties.
Check Your Savings Plan in the Boldin Planner
The Boldin Planner shows whether your current savings rate gets you to the retirement you want. You can test a higher 401(k) contribution, a Roth conversion, or a later retirement date and see how each changes your outlook.
Wherever you’re starting, raising your savings rate by even 1% this year moves your plan forward.
FAQs About Saving for Retirement
How much should I save for retirement each month?
Saving 15% of your gross pay, including any employer match, is a common target for retirement. On a $6,000 monthly paycheck, that’s about $900 a month. If you’re starting late or plan to retire early, you may need more, and a retirement plan can show your exact number.
What is the best way to save for retirement?
The best way to save for retirement is to automate contributions to tax-advantaged accounts. Start with your 401(k) up to the employer match, then fund an HSA or IRA, then return to the 401(k). Raising your contribution by 1% each year adds up without a big hit to your budget.
How much should I have saved for retirement by 40?
Fidelity suggests having about three times your salary saved for retirement by age 40. On a $75,000 salary, that’s about $225,000. Treat it as a checkpoint. If you’re behind, raising your savings rate and using catch-up contributions after 50 can close much of the gap.
Is 401(k) or IRA better for saving for retirement?
A 401(k) is often the better place to start if your employer offers a match, since the match is free money. An IRA can offer more investment choices and lower fees. Many savers use both: the 401(k) up to the match, an IRA next, then more in the 401(k).
How much can I contribute to retirement accounts in 2026?
In 2026, you can contribute up to $24,500 to a 401(k) and $7,500 to an IRA. Workers 50 and older can add $8,000 to a 401(k) and $1,100 to an IRA. Those 60 to 63 can add $11,250 to a 401(k) instead. HSA limits are $4,400 for self-only coverage and $8,750 for families.
