How much to put away for retirement is one of the most common financial questions people ask. There's no single "right" answer, but experts often suggest putting 15% of your gross income each year into retirement accounts.
About half of U.S. workers participate in a 401(k) or similar worker-sponsored retirement plan, though availability is closer to 70%. Many employers will match your contribution up to a certain amount, usually between 3% and 6% of your salary.
If your company does offer a 401(k) match, try to contribute at least enough to max it out. Otherwise, you're leaving money on the table.
What if you can't meet your employer match?
If you aren't in a position to contribute enough to meet your employer's match, aim to boost your retirement contributions by 1% to 2% each year.
Some companies automatically raise your contribution rate each year, so it's worth checking whether your plan has an "auto-escalation" feature.
For 2026, the standard limit for employee contributions to a 401(k) plan is $24,500, with an additional $8,000 catch-up contribution allowed for workers 50 and over.
If your plan allows, there is also a special "super" catch-up of $11,250 for workers 60 to 63
While maxing out your 401(k) is ideal, savers should be strategic.
"You may need to prioritize putting cash in your emergency fund or save for a down payment on a home or a vehicle," Shannon Lynch, a CFP at Empower, told CNBC Select. "[$24,500] isn't small change."
Although you don't pay income taxes on the money you put into a 401(k), you'll have to pay taxes later on when you withdraw the funds in your nonworking years.
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IRAs: How to invest if you don't have a 401(k)
If your employer doesn't offer a 401(k) plan, there are ways you can save for retirement on your own.
Many big banks and brokerages offer individual retirement accounts, or IRAs, that include a range of investments, such as individual stocks, bonds, index funds, mutual funds and CDs.
Similar to a 401(k), a traditional IRA can reduce your taxable income and you can set up automatic contributions from a checking or savings account. Unlike a 401(k), however, the account isn't tied to your employer and can follow you if you change jobs.
When shopping for an IRA, choose an account with commission-free trading, a variety of investment options and no minimum deposit requirement.
In 2026, the standard annual contribution limit for an IRA is $7,500, with an extra $1,100 catch-up contribution available for workers 50 and over.
If you're a younger investor or expect to be in a higher tax rate when you retire, a Roth IRA is taxed upfront, so your withdrawals are tax-free (as long as your account has been open for at least five years).
Could a gold IRA be part of your retirement portfolio?
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