How much are you saving for retirement? Experts recommend socking away at least 10% of your salary, but a recent report from the Plan Sponsor Council of America (PSCA) suggests many Americans are short of that benchmark.
The PSCA, which helps employers manage their retirement plans, concludes that the average American worker contributes just 7.6% of income to a workplace retirement plan. And you have to wonder: Is that enough to secure a comfortable retirement?
As you’ll see below, a deeper dive into the numbers suggests it is possible to fund a decent retirement by contributing less than 10% of your salary, though there are some major caveats. For one, you need to start saving in your 20s. You also need to be earning more than 5% in employer matching contributions.