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

posted 6 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 # 16
    1480 posts
    Bumble bee
    • Wedding: January 2011

    I put in 13% and my husband puts in 5%. My employer matches to roughly 10%, and my husband’s company matches 3%. 


    Any time I get a cost of living raise, I tack it on to my 401k. I have been with my current employer just over two years and saved a SUBSTANTIAL ammmount. Yay!

    Post # 17
    1888 posts
    Buzzing bee
    • Wedding: July 2012

    My employer doesn’t contribute anything, and I don’t trust the pension in my state, so it’s all up to me. Currently I contribute 14.5%. 

    Post # 18
    236 posts
    Helper bee
    • Wedding: January 2015

    Lollybags:  I’m Australian too – and equally unsure how with all the changes to when we can access our super and tax changes about putting more in… I always used to add a bit extra (when I had low income so there were extra benefits) but now I’m not so sure. 

    Post # 19
    147 posts
    Blushing bee
    • Wedding: June 2015

    I put in 11% right now but I plan on bumping that up to max out my account once I am done paying for grad school out of pocket. Currently 1/3 of my take home pay goes to undergrad student loads and grad school bills. On the bright side my employer matches the first 4%

    Post # 20
    13 posts
    • Wedding: July 2015 - Castle

    Australian tax & superannuation accountant here with a financial planning background 🙂

    Our new financial year just started on 1 July so now the compulsary rate is 9.5% on top of salary. 

    I’m happy to have that money locked away till I retire, but also have other savings and investments for pre retirment. As many have said the government does change the access and tax rate laws so I don’t expect to get my super until I’m well into my 70’s. But I plan to live a long time 🙂 I also have my life and TPD insurances inside my super to access the lower premiums.

    Post # 23
    1480 posts
    Bumble bee
    • Wedding: January 2011

    indyJEEP:  my employer pays for my health insurance, where my husband pays for his insurance and our daughter’s. 

    Post # 24
    10649 posts
    Sugar Beekeeper
    • Wedding: January 2011

    indyJEEP: I don’t know what you mean by distribution.

    RRSPs are taxed when withdrawn.  The money inside of them has not been taxed yet.  TFSAs are the reverse, the money has already been taxed, so there’s no taxes to pay upon withdrawing.

    I don’t regret taking the money out of the TFSA, as it isn’t a retirement vehicle only.  I put it in there knowing I would be using it for a downpayment.  If it didn’t exist, I wouldn’t have put that money into an RRSP instead, it would have stayed in an unregistered account.

    By using the TFSA, the interest wasn’t taxable, and I increased the amount I could put in there in the future.

    With an RRSP, if I put money in there now, I would likely be paying more tax on it in the future, as my current tax bracket is the lowest – I make no money.  It makes the most sense to put money in when making lots, and taking it out when income is little, as withdrawals are treated as income.  There are also other factors to consider though – like the Old Age Security which is clawed back if you have too much income at the time.

    When it comes to downpayments, there’s the homebuyer plan.  It allows an individual to take out 25K (50k/couple) from their RRSP without paying tax on it.  It must be paid back though, starting after 2 years.  At least 1/15 has to be paid back each year, for 15 years, or else that portion is added to income for that year, and is taxed.  We did not use this, but would have considered taking some from DH’s account if we didn’t have a 20% downpayment without it.

    • This reply was modified 5 years, 7 months ago by  AB Bride.
    Post # 25
    4028 posts
    Honey bee

    I currently conrtribute 18% to my retirement each month and get a 3% match. 

    Darling Husband contributes 8% each month with a 3% match. Once his student loans are paid off he will increase the contribution.

    Post # 27
    5948 posts
    Bee Keeper
    • Wedding: May 2014

    indyJEEP:  I put 4% and my employer matches a TINY part of that but only have so many years of service which I will not make. I need a new job. If I made a significant amount more, yes, I would definitely add more.

    Post # 28
    10649 posts
    Sugar Beekeeper
    • Wedding: January 2011

    indyJEEP:  I think our GIS is like your SS, although I’m not certain how SS works.

    GIS = Guaranteed Income Supplement  This is mean for seniors who have little income in retirement.  If someone is planning on getting this, they should not be contributing to RRSPs, as the income in retirement will significantly cut back on their GIS payment.

    OAS = Most recieve this.  I think it starts to be clawed back if you have an income around 85k in retirement, and it’s all lost around 135k (numbers are big estimates on my part).

    There is also CPP – Canada’s Pension Plan.  If you’re employed by someone, you pay in and it’s a percent of your income, although the max is fairly low.  You get out in retirement based on the years paid in, and the income paid in.

    Post # 29
    9544 posts
    Buzzing Beekeeper
    • Wedding: August 2013

    We both max out our 403(b) or 401(k) and Roth. That’s more than 50% of my net salary but less than that for my husband, since he makes twice what I make. So, combined, we put about 40% of our net salary into retirement savings. Then we put another 20% into non-retirement savings (emergency, vacations, future mortgage, other big purchases).

    My husband recently lost his job, so I may have to cut back on my retirement savings soon. And we realize that we probably won’t be able to save this aggressively once we have a kid, especially if one or both of us cuts back on work. But it works well, for us, at this point in our lives. And if we can save aggressively now, it has more time to grow before we retire. 

    Post # 30
    6916 posts
    Busy Beekeeper
    • Wedding: September 2011 - Boy #1 12/2015, boy #2 02/2018

    indyJEEP:  Hey thanks for posting this! Yeah, I did a bad job in the wording not realizing many things. I wish I could change it. Anyhow, right now, we are contributing $0 to retirement. Terrible I know, but that’s our reality. Darling Husband has some retirement money saved, and I plan to start saving myself. 🙂

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