Both Feldman and Mignone agree that people who save 10 percent in a qualified retirement account in their early years, through work or through an outside IRA, are pursuing an effective strategy.
However, Mignone urges clients closer to retirement, in their 50s, “to really sock it away. I think then, 20 percent makes sense.”
The advisors also agree that whenever a person starts saving through a qualified plan at work, the initial contribution rates should always be at least enough to earn the employer’s match (or to catch the maximum tax break, if it’s an IRA).
“The sooner you do this, the better,” Feldman adds. “The problem with this retirement savings gap is so many people are assuming that the government or someone is going to take care of you in old age. That’s a big mistake. You must take care of yourself.”