How much should I contribute to my 401(k)?

Financial experts recommend contributing at least enough to receive your full employer match (typically 3-6% of salary) - this is free money. Beyond that, aim to save 10-15% of your gross income for retirement. If you're starting late or want to retire early, consider 15-20%. The 2025 IRS limit is $23,500 for those under 50, and $31,000 for those 50 and older (including $7,500 catch-up contribution). Our calculator helps you see how different contribution rates affect your retirement balance.

What is an employer match and how does it work?

An employer match is when your company contributes to your 401(k) based on your own contributions. Common examples: '50% match up to 6%' means if you contribute 6% of your $75,000 salary ($4,500), your employer adds $2,250 (50% of $4,500). '100% match up to 3%' means if you contribute 3% of salary, your employer matches it dollar-for-dollar. This is free money - always contribute enough to get the full match. Our calculator shows exactly how employer matching accelerates your retirement savings.

What's a realistic rate of return for retirement investments?

Historical data shows the S&P 500 has averaged approximately 10% annually over the long term, but individual results vary based on asset allocation, market timing, and fees. Conservative estimates: A conservative portfolio (60% bonds, 40% stocks) might return 5-6% annually. Moderate portfolio (60% stocks, 40% bonds) could achieve 7-8%. Aggressive portfolio (80-90% stocks) may see 9-10%. For retirement planning, many financial advisors recommend using 7% as a reasonable long-term assumption. Our calculator lets you adjust this based on your risk tolerance and investment strategy.

What are catch-up contributions and who can make them?

Catch-up contributions allow workers age 50 and older to save extra money in their retirement accounts beyond the standard limit. For 2025: standard 401(k) limit is $23,500, but if you're 50+, you can contribute an additional $7,500 for a total of $31,000. For IRAs: standard limit is $7,000, with an additional $1,000 catch-up ($8,000 total). These higher limits help older workers accelerate retirement savings as they near retirement age. Our calculator automatically applies catch-up contribution limits when you enable them.

Should I contribute to a Roth 401(k) or traditional 401(k)?

Traditional 401(k): Contributions are pre-tax (reduces your taxable income now), grows tax-deferred, withdrawals in retirement are taxed as ordinary income. Best if: you're in a high tax bracket now and expect to be in a lower bracket in retirement, you want to reduce current taxable income, you need the immediate tax savings. Roth 401(k): Contributions are after-tax (no immediate tax benefit), grows tax-free, qualified withdrawals in retirement are completely tax-free. Best if: you're young with decades of tax-free growth ahead, you're in a low tax bracket now, you expect to be in a higher bracket in retirement. Many experts recommend doing both (split contributions) to diversify your tax situation in retirement.

How does the Rule of 72 apply to retirement savings?

The Rule of 72 is a quick way to estimate how long it takes your money to double at a given interest rate: divide 72 by your expected annual return. Examples: At 6% return, your money doubles in 12 years (72 ÷ 6 = 12). At 8% return, it doubles in 9 years (72 ÷ 8 = 9). At 10% return, it doubles in 7.2 years (72 ÷ 10 = 7.2). This illustrates the power of compound growth - a 30-year-old with $50,000 in their 401(k) earning 8% could see that balance double 3-4 times before age 65, potentially growing to $400,000+ from that initial $50,000 alone (before any additional contributions).

Retirement Calculator

Plan your retirement savings with 401(k), IRA, and employer match projections

Your Information

Current Age: 30

1875

Retirement Age: 65

5575

Current Retirement Balance

Annual Salary

Customize Your Plan

Customize Contribution

Contribution Rate10%

1%100%

Annual contribution: $7,500

Include Employer Match

Match Percentage

% match up to% of salary

Example: "50% match up to 6%" means employer matches 50% of your contributions up to 6% of your salary

Include Annual Salary Increases

Include Catch-Up Contributions (Age 50+)

Customize Investment ReturnDefault: 7%

Your Projection

Projected Balance at Age 65

in 35 years

Starting Balance

$50,000

Total Contributions

Investment Growth

Balance Composition

Starting: $50,000

Contributions: $0

Growth: $0

💡 Quick Insights

✓ Free money from employer match!
✓ Time is on your side - compound growth accelerates
💭 Consider increasing contributions if possible

At Age 65

Years to Retirement

📊 Expert Review: This retirement calculator and comprehensive planning guide were developed by Robert Williams, CFP®, RICP®, a Certified Financial Planner and Retirement Income Certified Professional with 20+ years of experience, in collaboration with Jennifer Martinez, CFA, Senior Retirement Analyst. Reviewed by Dr. Alan Thompson, PhD Economics, Senior Financial Economist at Numeraty Financial Services.

Last Updated: January 18, 2025 | Fact-Checked: All calculations use industry-standard retirement planning formulas and 2025 IRS contribution limits

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Start planning for the retirement you deserve with our comprehensive calculator. Whether you're just beginning your career or nearing retirement age, understanding your savings trajectory is crucial for financial peace of mind.