Am I contributing enough money for retirement at my age?

I am 25 years old, I work in banking and unfortunately I don't make much money but its a good department and the opportunities is there just starting pay is not much. I make $30k a year. My company is known for its 401k generosity and extremely low fees compared to my last employer.

Other answer:

Morningfox:
At age 25, I would put just enough in the 401k to get the max match. As for the Roth and traditional IRA, there are better uses for the money. Such as saving for a house and car, or even a good vacation overseas. Wait until early 30's to lock up money for retirement.

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Wonder why this got a thumbs down? Are you supposed to starve in a tiny one-room flat, so that you can have lots of money in your old age? Most people get more enjoyment from spending money when they are 25, compared to when they are 70. The idea is to have a constant level of enjoyment over your whole long life.

Saving 5% in a 401K at age 25 is enough. Save another 5% if you can, for spending during the next 5 years. Once you have 18 months income in short-term savings, you can start on the Roth and IRAs.

Trivial One:
I often hear financial advisors saying a person should save between 15% and 20% of their pay (including any employer matches) towards retirement. That's often beyond what many people can do, but it sounds like you can put away a substantial portion of your earnings.

If I were in the situation you describe, I would put away 20% (including the employer match) into accounts designated for retirement, made sure I had six months of expenses in an emergency account, and then put the rest of my savings into a a low-fee index mutual fund to save for a place of my own.

PetrolHead:
well you are not in alleppo get a life while you can banking is like everything else turning to automation in 50 years you shall be on a reservation
Lorenzo:
well you are not in alleppo get a life while you can banking is like everything else turning to automation in 50 years you shall be on a reservation
anonimitie:
You're off to a great start and doing so early will really payoff.
Gert:
Who knows. I thought I had enough…but it's never enough.
Gerald:
well you are not in Alleppo get a life while you can banking is like everything else turning to automation in 50 years you will be on a reservation
clara:
IDEK KNOW LOL
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