How much should I invest each month?
Direct Answer
Most financial planners recommend investing at least 15% of gross income for retirement (Fidelity benchmark), counting employer match. Below 10%, hitting a normal retirement age is mathematically difficult; above 20% gives meaningful flexibility for early retirement or major mid-career goals. Always capture the full 401(k) match before any other investing, it's an instant 25–100% return.
Monthly investing target at 15% of gross income
| Gross income | 15% gross | Monthly contribution |
|---|---|---|
| $50,000 | $7,500 | $625 |
| $75,000 | $11,250 | $938 |
| $100,000 | $15,000 | $1,250 |
| $150,000 | $22,500 | $1,875 |
| $200,000 | $30,000 | $2,500 |
The 15% benchmark explained
Fidelity's retirement-readiness research finds that someone who saves 15% of income from age 25 to 67 has roughly an 80% chance of replacing pre-retirement income through retirement, assuming a balanced portfolio. The 15% includes any employer match, so a 5% match means you contribute 10% yourself.
Where the dollars should go
1) 401(k) up to the match. 2) Roth IRA up to $7,000 (2026 limit). 3) HSA if available, up to $4,300 individual / $8,550 family (2026). 4) Back to 401(k) up to the $23,500 employee limit. 5) Taxable brokerage for anything beyond.
Frequently Asked Questions
- What if I'm behind on saving?
- Start at 50+ and Fidelity raises the target to 25–30% to catch up. Catch-up contributions ($7,500 extra to 401(k), $1,000 extra to IRA) help. So does delaying retirement by even 2–3 years, each year you wait raises your sustainable income by 6–8%.
- Can I invest 15% if I have credit card debt?
- Capture the match first (free money), pay off any debt above ~7% APR aggressively, then return to 15%. Mathematically, paying down 18% APR debt is a guaranteed 18% return, beats any stock-market expected return.
- Does 15% include the down payment savings?
- No. The 15% is retirement only. House down payments, kids' education, and other major goals are separate budget lines, typically saved in a brokerage account or high-yield savings depending on time horizon.
Sources
- Fidelity: How much should you save? , Fidelity Investments. Verified May 1, 2026.
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