SPINOFF: What do you contribute to your retirement each month?

posted 2 years ago in The Lounge
  • poll: What percentage of your income do you contribute to your retirement fund each month?
    Nothing - I can't afford it right now. : (9 votes)
    13 %
    Nothing - I choose not to momentarily. : (2 votes)
    3 %
    1-3% : (4 votes)
    6 %
    4-6% : (16 votes)
    22 %
    7-9% : (7 votes)
    10 %
    10-12% : (13 votes)
    18 %
    13-15% : (5 votes)
    7 %
    15%+ : (15 votes)
    21 %
    Nothing - My employer fully-funds my retirement. : (1 votes)
    1 %
  • Post # 2
    Member
    5199 posts
    Bee Keeper
    • Wedding: April 2013

    indyJEEP:  I contribute about 50% of my net income to my retirement.  Naturally that means that I max out all of my tax sheltered retirement vehicles quickly and a big portion of the savings then go into taxable vehicles. 

    My employer does not make any contributions, unfortunately (less common in Canada then in the USA).

    I follow a lot of the idea of this guy http://www.mrmoneymustache.com/

    Post # 3
    Member
    3280 posts
    Sugar bee
    • Wedding: June 2014

    DH puts about 7% in right now but we’re meeting with the HR lady tomorrow to talk about our investment options. I’m in grad school right now (we’re 21 and 22) which we’re paying for so once I’m done and working we will probably max out both. His employer contributes to his pension and 401K.

    Post # 4
    Member
    1248 posts
    Bumble bee
    • Wedding: April 2014

    In Australia my employer is legally required to put 9.25% of my total salary (so this doesn’t come out of my pay, it’s on top of it) into superannuation. I’m thinking of doing a voluntary contribution of my own too each pay but I’m a bit iffy on it as I don’t trust the government when it comes to super (them changing laws of access to it,tax etc. It’s a whole big pot of money sitting there and I’m sure they will want to get their hands on it, lol). Some employers give you more – if you work for the federal govt you get like 17% or something!

    Post # 5
    Member
    4025 posts
    Honey bee
    • Wedding: December 2013

    I put 14.5% of my income into retirement each month (it’s taken out immediately so it is not taxed) and my school district matches that each month. So at this stage of my career (going into my 3rd year teaching) right at $500 is taken out each month from my paycheck. 

    Post # 6
    Member
    1055 posts
    Bumble bee
    • Wedding: September 2013

    We max out (as we discussed on the other post!) and each of us have about a 3% ER match.  We are at least keeping this up until we have a family, at which point we will switch to 529 plans for college. 

     I actually audit retirement plans and that 3% ER match is pretty average around the mid-west.  You wouldn’t believe how few people actually contribute enough to get the full ER match!  Please, unless you have some extreme circumstance, at LEAST do enough to get the full max, bees!  It is like throwing money away!

    Post # 8
    Member
    10490 posts
    Sugar Beekeeper
    • Wedding: January 2011

    It depends by what you mean by retirement savings.  I am putting money into my TFSA.  It was maxed out, but a good portion was used as a downpayment.

    Currently, I have no RRSP.  It didn’t make sense to contribute before IMO.  I’m not accumulating any extra contribution room right now.  Based on my income, I doesn’t make sense for me to start my own.  I’m waiting to see what’s going to happen in the next little while.  I’ll either start one, or else we’ll set up a spousal RRSP.

    DH is contributing to his TFSA, which was also previously maxed out.  He maxes out the RRSP employer matching, but he isn’t maxing out what he could contribute.  He has a fair bit of deductions to carry forward.

    Depending on income, it isn’t always advantageous to max out RRSP contributions.

    Things will change once we get our TFSAs topped up (which is more than if we hadn’t contributed before, due to how are investments performed), as DH gets raises – he’s been getting the max allowed every year and will achieve his professional status soon, and if I become well enough that I feel I can work, currently we aren’t getting any taxable benefits due to my health issues, but my options are to go back to school full force which I am unable to do, or stay at home not working, or quit my program completely if I want to work.

    Post # 10
    Member
    1055 posts
    Bumble bee
    • Wedding: September 2013

    indyJEEP:  nice to “meet” a fellow pension auditor. Thrilling and glamorous job, isn’t it? Lol. Good luck on the exam!

    Post # 11
    Member
    5199 posts
    Bee Keeper
    • Wedding: April 2013

    indyJEEP:  Yeah, it’d be nice.  Some employers here do match contributions, but it’s not as common. 

    On the plus side, Canada has really good tax sheltered retirement vehicles and all of them can be accessed and managed indipenedent of an employer, so that’s positive.  I am familar with the vehicles in the USA (DH is American) and I like the way the Canadian ones work MUCH better.  They are simplier, they aren’t “use it or lose it”, and they aren’t dependent on your employment status which are all great benefits.

    Post # 12
    Member
    423 posts
    Helper bee

    My FI and I both max out our employer sponsored retirement plans. We contribute $17.5K each. Our employer matches 5% of our salary.

    I don’t believe I should live better in retirement then I do now… just in case something happens to me, so I’m very happy with my contributions.

    Post # 13
    Member
    1902 posts
    Buzzing bee
    • Wedding: April 2012

    I contribute the maximum to my 401k annually ($17,500) and whatever I can monthly to my Roth IRA (I generally max it out at $5,500).  If I have more money, I just try to contribute to my general savings.

    Post # 14
    Member
    1248 posts
    Bumble bee
    • Wedding: April 2014

    indyJEEP:  Not so much that (we pay taxes of which some go towards welfare and the aged pension, which we all highly doubt will still be around by the time we are at retirement age), just that I think the pot of over a trillion dollar sitting there will be very tempting for the government to try and get their hands on. Either to influence where it is invested or something else. Plus they keep changing the rules about the tax treatment of it, when you can access it, how much you can contribute to it/take out etc. I have a looong way to go until retirement and I’m just not sure about putting all my eggs in the one basket. Still, voluntary contributions are appealing because they lower your taxable income and such.

    Post # 15
    Member
    13005 posts
    Honey Beekeeper
    • Wedding: June 2011

    We contribute the max to 401k and Roth, I think we get a 4% employer match, and we put away another 1k or so into investments that will probably end up being used for retirement, so probably about 5k/month.

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