The Savings and Investing Rule of Thumb

If you’re not sure how much to save and invest for your retirement, the general rule of thumb is to save 10% of your income. Note that this assumes you have at least 30 years to save and invest the money. In other words, if you start saving late and only have a few years to retirement, you’ll have to save a lot more than 10%. Check out this article to see why time matters when it comes to retirement saving.

The easiest way to save 10% for retirement is to make it automatic — for example, via 401(k) contribution. If you don’t have this option, you can set up a transfer between your main account and your “10% saving” account.

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