As A Boomer I Invest 7% of My Income Monthly, is That Too Much, or Too Little?

For most people, deciding how much of their monthly income to save can be a real challenge. If you’re a fan of Dave Ramsey, the answer might be right around 15% of your gross income, but this number can vary considerably based on your personal needs.

In the case of baby boomers, this answer might be even higher, especially if they are playing catch-up. According to a 2025 Northwestern Mutual Study, Americans believe they need about $1.26 million to retire comfortably. If you are 50 and just starting to save, reaching that number could require contributing several thousand dollars per month, depending on your retirement timeline and investment returns.

How Much Should You Be Saving? 

Trying to get the advice of others, at least one boomer is taking to Reddit with a post in r/PersonalFinance, trying to decide if the 7% they are putting away is enough. In most instances, the answer here is a resounding no, as 7% is entirely too low and will result in not having enough savings to properly enjoy the golden years if you are starting too late. However, it’s important to take a look at your own finances first, as this is going to be a major factor in how much you put away each month. Do you have significant credit card debt, or are you taking on the debt of a child or having a child living with you? 

All of these factors are going to determine exactly how much free cash is available every month. This said, while Dave Ramsey might not always give advice that works for everyone, his 15% of gross income guideline is often considered a reasonable baseline for retirement savings, if not higher for those playing catch-up. At a $100,000 annual salary, 15% of gross income, or $15,000, should be going into a 401(k), IRA, brokerage, bonds, or some other type of investment account that is set to provide for retirement.

What Does Fidelity Say? 

If I had to give advice to someone, not as a financial advisor, which we recommend you speak with, but as a friend or family member, listening to a firm like Fidelity is a great idea. According to their general retirement planning guidelines, the 15% number holds pretty firm.

The caveat here is that Fidelity notes the 15% target can include employer contributions to a 401(k). The goal is for boomers still in the workforce to save at least 15% of gross income each year, either through an employer-sponsored plan, an IRA, or other retirement accounts.

If you need further validation that 15% is a common benchmark, T. Rowe Price also highlights that saving around 15% of your income per year is a solid target. Like Fidelity, they emphasize that this number can include employer contributions. T. Rowe Price suggests that individuals in their early 60s may need roughly 8 to 13 times their current salary saved for retirement, depending on income level and retirement age.

How to Increase This Percentage

Depending on where you are in your retirement planning as a boomer, you might want to consider increasing this percentage to 20% or even 25% in order to make sure you are hitting your retirement goals. This can be especially important if you hope to travel or maintain a more active lifestyle in retirement.

As a result, you may want to gradually increase your investment percentage rather than jumping from 15% to 25% all at once. For example, you could move from 15% to 17%, then 19%, and so on until you reach a comfortable ceiling.

Setting up automatic transfers can also help ensure the money is invested before you have a chance to spend it. Ideally, retirement contributions should be automated through payroll deductions or scheduled transfers.

You may also want to consult a financial advisor to help diversify your portfolio appropriately and ensure your investment strategy aligns with your goals and risk tolerance.

For most boomers, retirement planning can feel complex, so seeking out a fiduciary financial planner who can create a personalized plan may be beneficial.

If you have the means to go above 25% and can do so comfortably, setting aside more for retirement may strengthen your long-term financial security. The most important goal is to save enough for tomorrow without sacrificing your essential needs today.