Are You Serious About Retiring Someday?
Why 15% Is the Magic Number for Retirement Freedom
The question is vague and meaningless unless we attach measurable objectives to it. When I say “serious,” I’m referring to anyone who has a vision for retirement. Maybe that vision includes traveling whenever you want (no more PTO requests or coordinating with coworkers), relaxing on the deck in the middle of the day, or playing pickleball and golf regularly with friends.
At its core, retirement is about reclaiming the personal freedoms we once had as kids — doing what you want, when you want. What we often call “the good ole days” can absolutely return, and it doesn’t require extreme sacrifice — just a bit of discipline and a few smart decisions.
One of the most common questions I get is:
“What percentage should I be saving in my 401(k)?”
My answer: If you’re serious about retirement, start with 15%.
Often, people respond with:
“But my company only matches the first 3%.”
Here’s the truth: your company isn’t responsible for your financial future. They won’t be there when you decide to retire. Your retirement is your responsibility. That said, we should be grateful for employers who contribute to our retirement — it’s a valuable benefit. But it’s just a starting point.
What Does Saving 15% Actually Do?
Saving 15% gives you options. It gives you the freedom to choose your retirement age. Social Security’s full retirement age is 67, with reduced benefits available at 62. But we all know someone whose health or circumstances made those years difficult — or who didn’t make it that far. These things are often out of our control.
Saving 15%? That’s entirely in your control.
It’s an easy decision to make when starting a career, switching jobs, or getting a raise. Why? If you never see that money hit your bank account, you won’t miss it. And thanks to tax deferral, the actual impact on your paycheck is smaller than you’d expect.
In reality, 15% is a small portion of your overall cash flow. It’s a small choice, a small sacrifice, and a small amount of discipline. But that small decision today can create a huge opportunity later — the chance to leave the workforce earlier than most and live life on your own schedule.
Want to Retire in Your 50s?
15% is the starting point for people who are serious about retiring. If you want to retire in your 50s, you’re the only one who can make that happen. No one is stopping you from being above average.
“The best time to plant a tree was 20 years ago. The second-best time is now.”
Scenario:
If you earn $60,000/year, saving 15% means $9,000 annually. With compounding and employer match, that could grow to over $1 million by retirement.
Assumptions:
- Starting salary: $60,000
- Annual salary growth: 3%
- Annual investment return: 7%
- Savings rate: 15%
- Time horizon: 30 years
Talk to your advisor. Run the numbers. Make the change. Your future self will thank you. Please reach out to our team if you need help- we have offices located in Wisconsin Rapids, Plover, Wausau, and Antigo, as well as virtual appointments.
Ready to learn more? Get started by
requesting a complimentary initial consultation whenever it’s convenient for you.
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