How Much Should I Contribute to My 401(k)?
Rules of thumb, employer-match math, and examples by salary to help you pick a contribution rate.
Retirement Projection
The Short Answer
Most retirement guidelines suggest saving 10% to 15% of your gross income for retirement, including any employer match. If that is out of reach today, the floor is simpler: contribute at least enough to capture the full employer match, then raise your rate by 1% each year.
Start With the Employer Match
The match is part of your pay. If your plan matches 50% of the first 6% and you contribute only 3%, on a $75,000 salary you leave $1,125 a year unclaimed — money that would also compound for decades.
- Below the match ceiling: you are declining wages.
- At the match ceiling: you capture 100% of the free money.
- Above it: still valuable, but the instant return disappears.
Contribution Examples by Salary
What different rates look like in dollars, assuming a 50% match on the first 6%:
| Salary | 6% + Match | 10% + Match | 15% + Match |
|---|---|---|---|
| $50,000 | $4,500/yr | $6,500/yr | $9,000/yr |
| $75,000 | $6,750/yr | $9,750/yr | $13,500/yr |
| $100,000 | $9,000/yr | $13,000/yr | $18,000/yr |
How to Ramp Up Painlessly
Increase your contribution by 1% every six months or with every raise — you will barely notice the difference in take-home pay because traditional 401(k) contributions are pre-tax. Use the calculator above to see how each extra percent changes your projected balance at retirement.
Frequently Asked Questions
Is 10% enough for a 401(k)?
Ten percent including the match is a reasonable floor if you start in your 20s. Starting later generally calls for 15% or more to reach the same retirement income.
Does the employer match count toward the 15%?
Most guidelines count the match toward the total. A 10% personal contribution plus a 3% match equals a 13% savings rate.
Should I contribute beyond the match?
Usually yes. After capturing the full match, compare paying down high-interest debt and funding an IRA, then return to the 401(k) for additional tax-advantaged saving.
What if I cannot afford 10% right now?
Contribute what you can — even 3% builds the habit and captures part of the match — then schedule automatic 1% increases once or twice a year.
Related Guides
- 401(k) Calculator — main tool and full guide