Myth 10: I’ve Been Contributing to My 401k for Years … And That’s Enough, Right?
Not exactly. If you’ve been taking advantage of automatic enrollment for a 401k plan through your employer, you’ve probably been contributing about 3 percent of your income towards that retirement fund. However, this isn’t enough. Wade D. Pfau, professor of retirement income at The American College, recommends a 15 percent contribution rate for a 35-year-old who plans to retire at 65 years of age.