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Saving for Retirement In Your 40s–50s

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In your 40s and 50s, retirement may no longer feel like a distant goal. The years leading up to retirement can be some of your most important saving years, creating an opportunity to increase contributions and make meaningful progress toward your retirement goals.

THE POWER OF CONTRIBUTING MORE

401(k) contribution growth comparison

Even small increases in your contribution rate can have a meaningful impact on retirement savings over time. Compare projected retirement savings based on two contribution rates and see how increasing contributions may affect long-term outcomes.

Both contribution rates

Annual salary
$100,000
Starting 401(k) balance
$50,000
Annual raise
2%
Starting age
45
Ending age
67
Contribution rate
9% vs 15%
$336,428 More with the 15% contribution rate
Projected 401(k) account balance from age 45 to age 67 Starting with 50,000 dollars at age 45, the supplied projection reaches 1,032,056 dollars at age 67 with a 15 percent contribution rate and 695,629 dollars with a 9 percent contribution rate. The supplied difference callout is 336,428 dollars more.

Source: PGIM. Assumes 6% growth rate annually. This is a hypothetical example. It is not indicative of any actual investment. There is no guarantee that this will occur and the outcome could differ depending on an individual’s particular situation. Does not take into consideration taxes withheld at time of withdrawal.

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