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My neighbor said something about his pension that got me thinking
He's 68 and told me he only gets $1,200 a month from his pension, which is way less than he thought. I'm 35 and have only been putting the minimum into my 401k, so now I'm worried. How much should a person my age really be saving each month to avoid that?
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blakeo576mo ago
Emma's right about bumping it up slowly. The part people miss is that the minimum payment is often based on a really old idea of what retirement costs. It doesn't account for how crazy rent and healthcare get. You should look at your last statement and see what that "minimum" is actually on track to give you monthly. The number might scare you straight.
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emma_young6mo ago
My uncle retired on just his social security and it's brutal. The old rule was save 15% of your income, but that feels low now. At 35, you need to be putting in way more than the minimum, especially if your company matches any of it. Start bumping up your contribution by 1% every few months until it hurts a little.
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ericjackson4mo ago
Did that 1% bump trick actually work for you or did you end up just getting used to it and needing another nudge? I keep telling myself to do it but life always gets in the way.
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