401(k): Are You Contributing Enough?

Are You Contributing Enough to Retire On Time?

Planning for retirement can feel overwhelming, but taking a few simple steps now can make a big difference in the future. Start by considering how much income you’ll need in retirement and how many years you have to save. Many financial experts recommend aiming to set aside 10–15% of your income each year in a retirement account to help ensure you have enough for the lifestyle you want. But even starting by setting aside 5% can make a difference with compounding.

It’s also important to review your contributions regularly. Life changes, pay increases, or updates to your retirement goals may mean you need to adjust how much you’re saving. Even small increases—1–2% of your paycheck—can grow significantly over time thanks to compounding. By taking these steps now, you can stay on track to build a secure and comfortable retirement.

How to Estimate How Much to Set Aside

The farther you are from retirement, the more time your money has to grow — which means you don’t have to save as much each year to reach your goal. A general guideline is that most people need about 25 times their desired annual retirement spending saved by the time they retire (this is the “4% rule”).

• If you have 25+ years to retirement, you can start smaller (even 5% of your income) and gradually increase your contributions over time, because compounding does much of the work.

• If you are 10–20 years away, aim to step up your savings each year so you’re moving toward that “25 times your annual spending” target.

• If you’re under 10 years away, focus more aggressively on saving since you have less time for investment growth.

To calculate how much you should save:

1. Choose your desired monthly retirement spending (ex: $3,000).

2. Multiply by 12 for annual spending (ex: $36,000).

3. Multiply that number by 25 to estimate the total savings you’ll need at retirement (ex: $36,000 × 25 = $900,000).

4. Use how many years you have left to retirement to decide how quickly you should ramp up your contributions.

Enroll in Our 401(k) Plan

Not currently contributing to the Infinity Rehab 401(K) plan? It’s never been easier to enroll, so there’s no better time than right now to get started. Don’t delay and enroll today – your financial future will thank you.

To log into Fidelity, please follow these instructions:

Visit the Fidelity website at Fidelity NetBenefits.

1. Log in with your username and password. If you do not have an account, click on “Register Now” to create one.
2. Once logged in, navigate to the “401(k)” section.
3. Make your current deferral election.
4. Ensure that your changes are saved and confirmed.