Saving for Retirement

It's never too early, or too late, to start saving for your financial future.

Saving for retirement is the right thing to do. With a few guidelines, it can feel easier, too. Whether you’re just getting started or already saving, we can help you create a plan.

Rules of thumb


Save early

It pays to start now. And when you invest through a tax-advantaged retirement account, any earnings can compound tax-deferred until you're ready to withdraw the money.


Set a goal

You’ll probably need to replace 75% of your preretirement income to maintain your lifestyle through your retirement years. So your savings could be a significant source of income.


Target 15%

Aim to save at least 15% of your income each year toward retirement. And be sure to take full advantage of any company match. It counts toward that 15% goal. Use the Retirement Income Calculator to estimate how much you'll need.


Prioritize contributions

The order in which you contribute to your retirement accounts can help increase your future spendable income.

Common challenges

Behind in saving


It’s easy to fall behind on saving for retirement. If you’re age 50 or over, catch-up contributions are a great way to make up for gaps in your savings history. For 2021 and 2022, you can contribute up to $6,500 more to a workplace account or up to $1,000 more to an IRA.

No employer savings plan


If you don’t have a retirement plan through work, consider an IRA. If you’re self-employed or own a small business, there are several tax-advantaged options that let you set aside a percentage of your income.

Conflicting demands


Everyday life competes with saving for retirement. Three ways to make it a top priority: Set up automatic payroll deductions. Build an emergency fund equal to three to six month of expenses. Start college savings only after you’re well funded for retirement.

Ready to create your retirement plan? Our specialists can help. 1-800-332-6161

Choosing investments

When deciding how to invest, consider your time horizon and risk tolerance. If your time horizon is more than 10 years, you may want to consider investments that offer potential for growth. We’re always here to help you understand which investments can help you reach your goals.

Target date funds

Consider a fund that offers a single diversified portfolio professionally managed to a specific retirement date. Our target date funds are designed to help investors meet changing financial needs as they save for, approach, and live in retirement.

Mutual funds

You may prefer to build your own portfolio by choosing from our extensive list of 130 no-load mutual funds for retirement investing.

Asset Allocation

No matter what path you choose, invest in a mix of different types of investments, such as stocks and bonds, that’s appropriate for your time horizon. Need a guide? Our asset allocation models can help.

The T. Rowe Price ActivePlus Portfolios® Program

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All investments are subject to market risk, including the possible loss of principal. Diversification cannot assure a profit or protect against loss in a declining market.

The principal value of the target date strategies is not guaranteed at any time, including at or after the target date.

This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice. This material does not provide fiduciary recommendations concerning investments or investment management; it is not individualized to the needs of any specific benefit plan or retirement investor, nor is it directed to any recipient in connection with a specific investment or investment management decision.

The T. Rowe Price ActivePlus Portfolios® program is a discretionary investment management program provided by T. Rowe Price Advisory Services, Inc., a registered investment adviser under the Investment Advisers Act of 1940. Brokerage services are provided by T. Rowe Price Investment Services, Inc., member FINRA/SIPC. Brokerage accounts are carried by Pershing LLC, a BNY Mellon Company, member NYSE/FINRA/SIPC. T. Rowe Price Advisory Services, Inc., and T. Rowe Price Investment Services, Inc., are affiliated companies.