Dave Ramsey Says to Save 15% of Your Income for Retirement. Is That Enough?

37 minutes ago 1

Christy Bieber

Sun, November 23, 2025 astatine 9:00 AM CST 5 min read

Dave Ramsey recommends redeeming 15% of gross income monthly into tax-advantaged status accounts similar 401(k)s oregon IRAs.
Workers starting status savings successful their 40s oregon 50s apt request to prevention substantially much than 15% owed to little clip for compound growth.
The 4% withdrawal regularisation suggests multiplying your people status income by 25 to find the full concern equilibrium needed.
If you’re reasoning astir retiring oregon cognize idiosyncratic who is, determination are 3 speedy questions causing galore Americans to recognize they tin discontinue earlier than expected. instrumentality 5 minutes to learn much here

How overmuch of your income should you beryllium redeeming for your retirement? This is simply a question that perfectly each idiosyncratic needs to beryllium capable to answer. While Social Security benefits will help you money your retirement, the information that they regenerate lone 40% of pre-retirement income means that, by themselves, they cannot supply you with a comfy modular of living. Unless you're 1 of the tiny number of workers who get a pension from your company, this means you indispensable prevention capable to screen your costs and unrecorded the beingness you've hoped for successful your aboriginal years.

So, what should you beryllium redeeming to bash that? Finance guru Dave Ramsey has an answer.

The Ramsey Solutions blog suggests that you prevention 15% of your gross income and that you enactment it into tax-advantaged status accounts connected a monthly basis. In particular, Ramsey suggests putting this 15% into a 401(k) oregon an IRA each month. The large question is, volition that beryllium enough? If you perceive to Ramsey and put 15%, volition you person the status information you deserve, oregon bash you request to prevention more?

Ramsey's proposition to prevention 15% of your income makes consciousness -- for immoderate people. However, your status savings needs are babelike connected factors that are idiosyncratic to you, truthful pursuing basal rules of thumb similar this doesn't ever marque sense.

For example, if you are getting started with redeeming successful your 40s oregon 50s, redeeming 15% of your income whitethorn not be nearly capable to let you to prevention a capable magnitude of wealth to discontinue with nary fiscal worries. Since you person little clip for compound involvement to assistance your wealthiness grow, you whitethorn person to prevention substantially much unless you privation to enactment good into status age. Likewise, if aboriginal status with a large concern relationship equilibrium is your goal, redeeming 15% of your income astir apt is not going to get you there. You'd request to put much to execute your desired manner arsenic a retiree.