How much income for retirement?

[tan fish]

I know this general topic has come up before loads of times, but I am wondering, specifically, what is the target amount of a monthly income one should contribute to retirement? I realize that generally the answer should be "as much as you can" but is there a specific amount that is considered to be a good goal? I recall listening to Dave Ramsey and if I remember correctly he always said 15% of one's monthly income should go to retirement. But is this 15% of your take home pay after taxes? Or 15% of your "total salary" before taxes? Also, does the 15% include contributions from your employer?

Thanks in advance.

[Andrew Jackson]

I think they generally say at least 10%. But 15% is great if you can afford it. It probably also depends on how "on track" you currently are in regards to retiring when you want to. I too was wondering whether these percentages are supposed to be before or after taxes. For me their is a difference of about $50 per paycheck between the 10% before taxes and the 10% after taxes. Obviously you will save more for retirement if you go the before taxes route. In my case I am also trying to save for a house down payment as well as start costs for opening a business I really don't feel like I can afford to save the extra $50 per paycheck for retirement.

[disneysteve]

The general advice is 15% of gross. That does not include employer contributions. It is 15% of your gross. So if you earn 50K, you should be saving $7,500 each year for retirement.

Andrew Jackson makes a very good point, though. It depends on your starting point. If you are 22 and just out of college, 15% is just fine. If you are 40 and haven't yet started saving for retirement, 15% won't cut it and you'll need to put away a lot more than that if you ever hope to retire.

[tan fish]

Thanks for the replies and clarifications. I was thinking it was 15% of gross but was hoping for other feedback or confirmation. In my case, I am contributing about 12% of my gross per month. But after including employer contributions, it goes to about 20%. My employer has a VERY generous match of 8%. Still, I am going on 39 and have only started saving for retirement when I was about 32, so I need to play catch-up. I've maxed out my 401 and am contributing to 2 IRAs, though not at its maximum level, largely because I am also trying to pay off debt and save for other items as well.