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[[{“value”:”Image source: Getty ImagesThere’s a reason 20% of Americans aged 50 and over have no retirement savings, according to AARP. It’s not easy to find the money for IRA or 401(k) plan contributions when you have other pressing expenses to tackle. And if you’re not a particularly high earner, you might need your entire salary to cover your basic costs.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. But what if you earn $100,000 a year? On a salary like that, it’s conceivable that you should be able to save something for retirement. The question is, how much is reasonable?A good retirement savings target for a $100,000 incomeFinancial experts generally recommend saving 15% to 20% of your income for retirement. But even on $100,000 a year, that may not be doable.A lot of people who earn $100,000 a year also live in higher-cost areas that give them access to salaries like that. If you’re paying $3,000 a month to rent a one-bedroom apartment, that’s $36,000, or roughly one-third of your salary, right there. You may not have a spare $15,000 to $20,000 a year to save for retirement, and that’s understandable.On the other hand, if you earn $100,000 a year, it’s conceivable that you may be able to part with 5% of your pay, or $5,000 a year. And that could go a long way toward building a nice retirement nest egg.Over the past 50 years, the S&P 500’s average annual return has been 10%, accounting for years when stocks did well and years when they did poorly. If you invest $416 a month (which is $5,000 a year) over a 30-year period, and you earn that same 10% return in your portfolio, you’re looking at a savings balance of about $821,000. That’s more than four times what the typical 65- to 74-year-old has in retirement savings, according to the Federal Reserve.Finding the right home for your retirement savingsYou have different options when it comes to housing your nest egg. If you work for an employer that offers a 401(k) plan, signing up can be beneficial, especially if there’s a company match involved.But if you don’t have access to a 401(k), an IRA is a great bet. In fact, in some ways, IRAs have an advantage over 401(k)s.Because IRAs allow you to hold stocks individually (whereas 401(k) plans commonly limit you to different funds), you get more of a say over how your money is invested. And you may find it easier to keep your investment fees to a minimum with an IRA, whereas with a 401(k), you might face costly fees if you choose investments like mutual funds.Not sure how to find the right IRA? Check out this list of the best IRAs to get started.The amount of money you should save for retirement on $100,000 a year truly depends on what your expenses look like. If you’re able to sock away 15% to 20% of your pay for the future, great. If not, don’t sweat it. The key is to save a meaningful amount over a long period, and to invest your money in stocks so your savings may grow.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”
Image source: Getty Images
There’s a reason 20% of Americans aged 50 and over have no retirement savings, according to AARP. It’s not easy to find the money for IRA or 401(k) plan contributions when you have other pressing expenses to tackle. And if you’re not a particularly high earner, you might need your entire salary to cover your basic costs.
Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
But what if you earn $100,000 a year? On a salary like that, it’s conceivable that you should be able to save something for retirement. The question is, how much is reasonable?
A good retirement savings target for a $100,000 income
Financial experts generally recommend saving 15% to 20% of your income for retirement. But even on $100,000 a year, that may not be doable.
A lot of people who earn $100,000 a year also live in higher-cost areas that give them access to salaries like that. If you’re paying $3,000 a month to rent a one-bedroom apartment, that’s $36,000, or roughly one-third of your salary, right there. You may not have a spare $15,000 to $20,000 a year to save for retirement, and that’s understandable.
On the other hand, if you earn $100,000 a year, it’s conceivable that you may be able to part with 5% of your pay, or $5,000 a year. And that could go a long way toward building a nice retirement nest egg.
Over the past 50 years, the S&P 500’s average annual return has been 10%, accounting for years when stocks did well and years when they did poorly. If you invest $416 a month (which is $5,000 a year) over a 30-year period, and you earn that same 10% return in your portfolio, you’re looking at a savings balance of about $821,000. That’s more than four times what the typical 65- to 74-year-old has in retirement savings, according to the Federal Reserve.
Finding the right home for your retirement savings
You have different options when it comes to housing your nest egg. If you work for an employer that offers a 401(k) plan, signing up can be beneficial, especially if there’s a company match involved.
But if you don’t have access to a 401(k), an IRA is a great bet. In fact, in some ways, IRAs have an advantage over 401(k)s.
Because IRAs allow you to hold stocks individually (whereas 401(k) plans commonly limit you to different funds), you get more of a say over how your money is invested. And you may find it easier to keep your investment fees to a minimum with an IRA, whereas with a 401(k), you might face costly fees if you choose investments like mutual funds.
Not sure how to find the right IRA? Check out this list of the best IRAs to get started.
The amount of money you should save for retirement on $100,000 a year truly depends on what your expenses look like. If you’re able to sock away 15% to 20% of your pay for the future, great. If not, don’t sweat it. The key is to save a meaningful amount over a long period, and to invest your money in stocks so your savings may grow.
Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
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