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Guide

How Much Should I Contribute to My 401(k)?

A simple framework: capture the match, then build toward 15% - and what to do if you can't get there yet.

There's no single right number, but a clear priority order works for almost everyone:

1. Get the full employer match

This is free money and an instant return. If your employer matches 50% up to 6% of pay, contribute at least 6%. Skipping it is the most expensive mistake in retirement saving - our match calculator shows the lifetime cost.

2. Build toward 15% of salary

A widely used target is saving 15% of gross pay for retirement, including the employer match. If you start in your 20s, even 10-12% can be plenty; start later and you may need 20%+.

3. Use catch-ups after 50

From age 50 you can add a $8,000 catch-up, and ages 60-63 get a $11,250 super catch-up for 2026.

Can't hit 15% yet? Save what you can, capture the match, and raise your contribution by 1% each year or whenever you get a raise - you'll barely notice it in your paycheck.

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