How Much Do You Need To Retire? The 10% Rule

When trying to figure out how much you need to retire, there are many different rules of thumb you could follow. While I’ve previously discussed the 4% rule and the rule of 20, which both calculate your likely income at retirement, the most common calculation on how much to save up to retirement may be the 10% rule.

The 10% rule simply states that you should save 10% of your gross income. Note that it’s gross income, not your net income or paycheque. For example, If you earn $1,500 every 2 weeks and get paid $1,000 after taxes and other deductions, you should save $150 every 2 weeks, not $100.  Read More…


  1. You bring up a good point about money management. Too many of my friends are too eager to spend their money on the latest video games, or go out and party. I am guilty of that too unfortunately. I think peer pressure plays a part in why it is hard to save. When you see others are having a good time you feel left out.

  2. The problem with saving for retirement is that most people will just end up dipping into it to by non essentials like a big screen tv. And they’d still ahve a massive credit debt that they can’t pay off when they do get to retirement age. The problem isn’t about saving for retirement it is the problem of money management.

  3. I think it should be everyone who starts a family to have the fiduciary responsibility to take care of that family and begin a prudent retirement plan. There is nothing worse than having to rely on your kids in your elder years.

  4. Got my ticket for tonight’s $50 million large! 🙂 🙂

  5. Oddly enough i am sure that is what a lot of people already do.

  6. Just buy 20 lotto 649 tickets, hide under the covers, and hope for the best.

  7. I practice my own homegrown 5% rule where i have begun saving since i was 21 and a portion of my paycheck gets put into a separate investment account which get invested automatically into a balanced index fund.

  8. Hey if you’re like 75 and haven’t saved you are pretty much SOL…just sayin’ and keepin it real.

  9. “When is the best time to begin retirement savings?”

    Save Now. And Save Often. You are never too young and never too old to begin saving.

  10. When is the best time to begin retirement savings?

  11. I go further and save about 17% of my income each year. The compounded interest i get from my RRSP, GIC, and savings accounts are making my future retirement all the worthwhile.

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