What percentage of your income do you save?

[cobafdek]

Consider this a companion poll to the one Liberty started yesterday.  This poll might provide a meaningful, interesting interpretation to the raw numbers in Liberty's poll, and give folks a rough benchmark on how close you are to retirement, or, if you prefer, financial independence.  Income is defined as take-home, after-tax.

 

Then, refer to the chart below (from mrmoneymustache.com):

 

SAVINGS RATE (%)    WORKING YEARS UNTIL RETIREMENT

5                                  66

10                                51

15                                43

20                                37

25                                32

30                                28

35                                25

40                                22

45                                19

50                                17

55                                14.5

60                                12.5

65                                10.5

70                                8.5

75                                7

80                                5.5

85                                4

90                                <3

95                                <2

100                              0

 

The chart assumes 5% annual investment returns after-inflation during savings years, i.e., this could be achieved or exceeded with index funds, never mind value-investing.  Also assumes a 4% withdrawal rate after retirement, i.e., a stash that lives forever.

 

Board members in their 20s might be able to adjust expenses.  Older folks with partial nest eggs can gauge if they're on-track.

 

 

 

[berkshire101]

I save around 80% of my income. 

[DanielGMask]

Almost 60%.

[Jurgis]

This is a bit tough to calculate... pretax/aftertax? And since some savings are pretax (401(k), IRA) and some aftertax it's not really the same. I voted ballpark range. :)

[sys]

This is a bit tough to calculate... pretax/aftertax? And since some savings are pretax (401(k), IRA) and some aftertax it's not really the same. I voted ballpark range. :)

 

i agree, i didn't feel i could answer the question.  is it what % of aftertax income is saved, or what % of all income (including employer match?) is saved, but using aftertax income as the denominator?  is mortgage principal included as savings?

 

for many posters, i'm sure it wouldn't change their answer much, but in my case it would.