A recent survey by life insurance company Allianz Life found 64% of Americans worry more about running out of money than dying. In its 2025 Annual Retirement Study, survey participants cited high inflation, taxes, and Social Security not providing enough as some of the main reasons for their concerns.
“There is a lot going on right now, a lot of uncertainty and a lot of fear,” says Josh Andreasen, Director of Financial Planning for Edelman Financial Engines in Burlington. “Do your best to tune out the noise.”
When it comes to retirement planning, many financial companies promote a 15% rule-of-thumb, encouraging you to put 15% of your pre-tax paycheck toward retirement savings accounts and maxing out your annual 401(k) contribution, which is $23,500 in 2025.
Others go further and set benchmarks based on your age. Fidelity recommends you have two times your salary saved by age 35, four times by age 45, and seven times by age 55.
While the goals are noble, they can also be unrealistic for many individuals and families faced with rising costs for housing, childcare, utilities, groceries, and more.
Andreasen says it’s important to remember your savings journey is unique to you.
“Personal finance is personal,” Andreasen told Boston 25 News. “Do your best to focus on what you can control.”
Don’t get discouraged by your personal situation, and don’t compare yourself to others, he says. Most importantly, save what you can as consistently as you can -- “until it hurts,” Andreasen said.
“Save until you get to a point where the money that’s coming in... is a little tight,” he said. “Then you can back off on your 401(k) by one percent.”
The Bureau of Labor Statistics estimates 70% of American workers have access to an employer-sponsored 401(k) retirement plan, but only 53% participate. Congress is hoping to increase participation.
Beginning this year, many companies with 401(k) plans must automatically enroll new employees at a 3% contribution rate, unless the employee opts out. While a 3% contribution means a smaller paycheck, Congress hopes the rule will help put more Americans on a path to a comfortable retirement.
“The sooner you can get started, the better off you will be,” Andreasen said.
In addition to joining a company retirement plan, experts recommend stepping up your savings as your income grows over time. For example, if you get a 3% raise at work, consider increasing your 401(k) contributions by half, or 1.5%.
Take advantage of any employee match incentives, as well. Many companies will match your 401(k) contributions up to a certain point, usually between 3% to 6%.
“That’s free money,” Andreasen says. “If your company gives a match on your 401(k), absolutely do you best to meet whatever ... the saving amount is to get that match. Otherwise, you’re leaving money on the table.”
Download the FREE Boston 25 News app for breaking news alerts.
Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW
©2025 Cox Media Group
/cloudfront-us-east-1.images.arcpublishing.com/cmg/7QOJU3BNCJERBNKJC5LWTBYFLU.png)
