Benchmarking your contribution rate against others your age can help you see whether your current savings habits are on track.
A J.P. Morgan report shows Gen Z workers contribute about 3.7% of their salary to workplace plans on average, while Millennials contribute 5.0%, Gen X 6.0%, and Boomers just over 7%. All are below the recommended contribution rate of 10% or more.
A 1% annual ***** p to your contribution rate can substantially improve long-term outcomes, especially when done early in your career.
Most workers have only a rough sense of whether they're contributing "enough" to their workplace retirement plan. Contribution rates are often set early in a career, when your budget is tight, and may stay unchanged for years. Yet these seemingly modest choices—setting a rate of 5%, 6%, or 7%—hold far more influence over long-term retirement readiness than many people realize.
Defined contribution plans, including 401(k)s, 403(b)s, 457 plans, and other employer retirement accounts, remain the primary way many Americans save for retirement. But most workers have little insight into how their own contribution rate stacks up.
A J.P. Morgan report shows Gen Z workers contribute about 3.7% of their salary to workplace plans on average, while Millennials contribute 5.0%, Gen X 6.0%, and Boomers just over 7%. All are below the recommended contribution rate of 10% or more.
A 1% annual ***** p to your contribution rate can substantially improve long-term outcomes, especially when done early in your career.
Most workers have only a rough sense of whether they're contributing "enough" to their workplace retirement plan. Contribution rates are often set early in a career, when your budget is tight, and may stay unchanged for years. Yet these seemingly modest choices—setting a rate of 5%, 6%, or 7%—hold far more influence over long-term retirement readiness than many people realize.
Defined contribution plans, including 401(k)s, 403(b)s, 457 plans, and other employer retirement accounts, remain the primary way many Americans save for retirement. But most workers have little insight into how their own contribution rate stacks up.
4 months ago
