Lesson 10 - How much should I contribute?

How much should I contribute?

There isn't a one-size-fits-all answer, but here are a few things to consider when helping you decide.

The power of consistent contributions

In lesson 9, we discussed if you can afford to contribute to your 401(k) in the first place (Spoiler alert: We think you can! A little may go a long way.)

Now that you know that small contributions can add up, it's worth diving a little deeper.

So, how much should you save?

The answer to this question largely depends on your individual plans for retirement. Generally, the longer your retirement, the more you’ll need in savings.

Ronnie Cox, Investment Director at Human Interest Advisors, says you should consider contributing between 10% to 15% of your annual income. "Depending on your situation, however, that may mean starting at a lower rate like 7%, and gradually increasing each year through automatic increases," said Cox.

Use our Retirement Savings Calculator

The Human Interest Retirement Savings Calculator can help you predict your retirement income and help provide answers to the following questions:

• Will I have enough money saved up when it comes time to retire? 

• How much monthly income can I expect? 

• How does adjusting my contributions today change my financial future? 

You can always change your contribution amount 

At Human Interest, we allow all plan participants the flexibility to change their contribution rate at any time. That means you can always adjust your contributions as you see fit. However, it's worth noting that changes could take one or two payroll cycles to take effect.