Dave Ramsey Says to Save 15% of Your Income for Retirement. Is That Enough?

Core Insights - The article emphasizes the importance of saving for retirement, highlighting that Social Security benefits only replace 40% of pre-retirement income, necessitating additional savings for a comfortable retirement [1] Group 1: Recommended Savings Rate - Finance expert Dave Ramsey suggests saving 15% of gross income monthly into tax-advantaged retirement accounts like 401(k)s or IRAs [2][5] - The adequacy of saving 15% is questioned, as individual circumstances may require different savings rates [3] Group 2: Individual Considerations - For individuals starting to save in their 40s or 50s, saving 15% may be insufficient due to less time for compound interest to grow their wealth [4][5] - Those aiming for early retirement with a substantial investment balance will likely need to save more than 15% to achieve their desired lifestyle [4][5] Group 3: Withdrawal Strategy - The 4% withdrawal rule is mentioned, suggesting that individuals should multiply their target retirement income by 25 to determine the total investment balance needed for retirement [5]