Link

This is well done, IMO, because it lets you compare based on both age bracket (20's, 30's, etc) and income level. Did you come out ahead or behind the median for your age bracket?

[edit]Added a poll!

I am basically at my median for my salary bracket, but considering I'm 32 I think that puts me ahead since I should have considerably more when I am 39.

I am REALLY surprised though that the 60+ median is not significantly larger though. I am planning on having over 1mil for retirement.

I am ahead but no longer put money in since leaving a real job. I just moved mine to an IRA to hopefully see some growth.

A little off topic, but how much should you contribute to your 401k?

most likely based on todays economy where when you reach that age even the 1m may not be enough

If you have a company match, you should contribute at least as much as possible to take advantage of the company match, since it is essentially "free" money. After that, what you do largely depends on your tax situation - if you're in a lower tax bracket, the usual advice is to fund a Roth IRA next, since it is "better" to fund a Roth at the time you are in a low tax bracket. Depends a lot on your personal goals and how much you can afford to sock away. IMO the more important factor is when you start saving - since time and its effect on compounding interest is something that is out of everyone's control.

One thing that this doesn't really take into account is the fact that many people roll their 401(k) balances over into IRAs when they terminate employment. So many people may have had more in their 401(k) at one time, but now have rolled over into an IRA for the various benefits that entails.

Well ahead, which is a good thing. Interesting article - confirms what the press has been saying for years, people are unprepared.

Narc, to see what $1million today will be when you retire, you need to extrapolate out with an inflation factor - for example to have in todays dollars, $1 million spending power, you will need over $2 million in 25 years at a 3% inflation rate. Inflation is the silent killer of savings, that is why you must be in the market to beat inflation to get real gains.

And DH doesn't have a 401(k) because he and the city contribute to IPERs...but when add everything up, we should be quite comfortable...

Excellent point, and one that is important to keep in mind. That's something that I'm sure everyone understands, but it really helps to see it on paper to fully realize exactly what it will take to do save for retirement.

I'm right at teh median for my income and age, but I voted behind since I'm near the upper end of the age bracket (28) and upper end of the income bracket. I am contributing at the limit of the company match, but that's all right now since we just bought a home 6 months ago.

I think that is part of the main thing is to contribute at least to the portion needed for your employer to match maximum. Those that do not at least do that are missing out on money that is easily able to be there for you.

My company matches a maximum of 4% if I contribute 8%. So I figure I should contribute my 8% to get 4% of free money. It looks like I'm somewhat ahead of the figures posted, but not by far. Since I don't have any goods, I figure now's a better time to contribute more, but I haven't done so.

You should always put enough to get company matching contribution. I have no regrets doing that since i first started working. Like others mention in this thread already, after the match it depends on your income tax status and whether you should be putting more. Interesting article. Thanks.

My company matches 100% up to the maximum of 20K so I guess I will try to contribute 20K a year. It will be tough though since I really don't make that much money.

20k would be a HUGE match amount. I am not even sure the govt allows 20k per year to 401k. If that is accurate that would be a great company to be in 401k with.

The max for 2006: $15,000
not sure what 2007 is

My goodness, if you can get 20k/yr for free just by throwing 20k in a 401k, then DO IT! If you really need more money to live on, take out a loan.

Have you double-checked that match amount though? I've never heard of such a thing. Plus, isn't the current 401k limit $15,500?

My company matches 5%, but I've begun to max out my 401k this year.

I think I understand

2007 contribution limit - $15,500 *With 5,000 catch up allowance if over 50
2007 contribution limit - $16,000 *With 5,000 catch up allowance if over 50
*Note: The matching contributions made by your employer do not affect the above contribution limits

So it looks like they may match up to the catch up amount. What a great deal!

It's probably because 401k's have only been around for 25 years or so, at least in widespread use that is.

I am ahead of even the max income 50+ bracket but I have been putting in close to the max % ever since I started my 401k about 17 years ago. And the funds that I've put the money in have luckily done pretty well.

It's insane how many people don't put anything into a 401k even when there is a company match. That's like throwing away free money.

Right-o. I have got my boss and her husband to set up their 401(k)'s and 2 other employees as well after I explained to them the benefits thereof.

We have double what is on that chart, on DHs 401K account alone.

I am not sure of my companies limit, but all I know is that they told me it matches 100% up to the federal limit. If its 15K fed limit then I guess that is it. I don't make much money. I don't know if taking out a loan would be worth it to make the limit, but I will consider it. I will be jumping into the 401k plan in the next open window since you need to work a year before you can go into it.

Taking out a loan is probably a bit too extreme. Do you know what the vesting period is on the match? Many companies require you to stay around for some period of time before actually giving you the amount of the match. I would double-check the match amount with your HR department - as many here have suggested, 100% up to the federal limit is extremely generous, so much so that it's likely that there's something that you're not aware of. If that is in fact what they are giving you, I'd think really hard about how much you can contribute. Although it's a great deal, it's not worth racking up credit card bills or something paying expenses now, while saving for retirement that you will not reach until many years from now.