What is the optimal savings rate for your retirement plan?

When talking around the watercooler at work, we frequently hear a lot of tips about life. One that is probably wrong is how much to save in your firms retirement plan? Is the answer up to the employer match? That was what we heard when we started by in ’97. Unfortunately the follow up questions that an expert could help you with on your 403b, 457 or 401K involve a deeper look.

When did you start saving? When do you plan on retiring? Are you paying off student loans? Are you saving for the purchase of a home? What other savings do you have for retirement? Do you have an emergency fund? Are you paying off any other debts like credit card debt?

Those are just a few of the considerations that would lead you to the correct savings rate. Fortunately if you are a participant in a QP Consulting advised retirement plan, we have the tools and resources to help you with this.