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Like many Americans, you may be wondering how much you should be saving for retirement. A study by the Center for Retirement Research at Boston College shows that more than half of all U.S. households may not be able to maintain their standards of living after they stop working. But you can help secure a more comfortable retirement — by following a slow and steady savings plan.

How can you be better prepared for retirement?

Taking a few positive steps today can help improve your odds of having enough money to retire comfortably. First, make sure you're saving as much as possible in your workplace retirement plan. Start by contributing at least 5% of your gross income or enough to get the maximum employer matching contribution, if one is offered. Second, increase your contribution by 2% a year until you reach the federal limit.

Here's a look at how 2% annual increases in retirement plan contributions can make a difference in total retirement savings over 10 years for someone earning $40,000 the first year.*

This strategy helps assure you're continually boosting your retirement contributions to speed up the growth of your savings. Raising the contribution amount a little bit every year can take some of the sting out of saving. Because you'll likely receive a tax deduction for your contributions, your take-home pay won't be reduced by the full 2%. Try using our Contribution Planner to see how that 2% will affect your paycheck and how much it can grow your retirement savings.

Keep in mind — when you get raises, you can use them to pay for the additional 2%. That way, you may not even miss the extra money you're setting aside. Make the 2% solution part of your retirement strategy to help you travel along the path to a positive future.


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Lincoln Financial Group is the marketing name for Lincoln National Corporation and insurance
company affiliates, including The Lincoln National Life Insurance Company, Fort Wayne, IN,
and in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY. Variable products
distributed by broker/dealer-affiliate Lincoln Financial Distributors, Inc., Radnor, PA. Securities
and investment advisory services offered through other affiliates. Explore Lincoln.