Learn about investing essentials.

How Much You Should Save

This is a highly individualized question. What follows are some guidelines and information on estimating how much to save for retirement.

Goal: Replace 70-85% of Pre-Retirement Income

A general rule of thumb is that you need to save enough to replace 70% to 85% of your pre-retirement income. Some people may need to save more; some people may need to save less.

Social Security + Work-Based Savings Plan

For most individuals, retirement will be funded by Social Security and a work-based savings plan, like the Bosque Plan.

Save Eleven Times Salary to Supplement Social Security

Many financial planners recommend saving at least 11 times annual salary to supplement Social Security and get to the 70% to 85% of pre-retirement income target. As an example, an employee earning $50,000 annually should aim to save at least $550,000 (11 x $50,000) in the Bosque Plan. See the "Saving $250,000; $500,000; and $1 million" chart below and use the Savings Calculator to help estimate how to save this amount.

To estimate Social Security payout use the Social Security’s Retirement Estimator. Currently, Social Security will estimate payout beginning at three different ages: 62; 67; and 70. The longer you wait to take Social Security, the higher the monthly payout.

TIAA-CREF has a wealth of planning tools and services available including access to TIAA-CREF Financial Consultants. Once you have enrolled in the Plan and established a TIAA-CREF account, you can learn more about these services from the "Advice & Planning" tab.

To speak to a TIAA-CREF representative Monday through Friday, 8am to 10pm (EST), and Saturday, 9am to 6pm (EST), call 800-842-2252.

Savings Goal of $250,000 Years Until
Retirement
Must Save
Annually
Must Save
Monthly
10$17,257$1,367
15$9,207$722
20$5,463$424
25$3,420$263
30$2,207$168
35$1,451$109
Savings Goal of $500,000 Years Until
Retirement
Must Save
Annually
Must Save
Monthly
10$34,515$2,733
15$18,415$1,445
20$10,926$849
25$6,839$526
30$4,414$335
35$2,902$218
Savings Goal of $1,000,000 Years Until
Retirement
Must Save
Annually
Must Save
Monthly
10$69,029$5,466
15$36,830$2,890
20$21,852$1,698
25$13,679$1,051
30$8,827$671
35$5,803$436

Note: These examples are for illustrative purposes only and are not predictors of any actual investment. Source: Meridian Wealth Management