How much do you need to save? If you’re starting to save at the age of 25 and want to retire at age 65, it is recommended to put away at least 15% of your salary. But before you can save, you have to get yourself out of debt. Every situation is different, but a couple of basic principles apply to everyone. First, no matter how much debt you have, ALWAYS max out on the employer match on your 401(K) retirement plan. Some employers will match the amount of money you put into your retirement account up to some maximum amount. The human resources staff can educate you more about this process. The “return” on this money is usually between 50% and 100%, which is higher than the worst credit card interest rates. Next, make it a priority to eliminate your debt (credit cards, car loans, and student loans). Only when you’ve gotten rid of all your debt are you truly saving for retirement.
