Retirement savings

Training 1025 minuteshow to save for retirement

You are 30, a chef earning $3,000 a month. In many countries the state pension covers only part of your usual costs. You build the rest, and time matters more than the amount.

Training goal: Get your retirement saving running today

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Situation

1. Your employer offers a retirement plan: it adds 50% on top of your contributions, up to 6% of your salary.

Skip it, you need the money now
Put in 6% to get the full match
Put in 2%, sort it out later

2. A friend laughs: "I will start at 40, now is for living." You run the numbers.

Start now with $200 a month
Wait until 40, like your friend
Save for retirement on your debit card

3. You switch jobs. The old plan holds $6,000, and you can cash it out after tax and a penalty.

Cash out and buy a motorbike
Move it to your new retirement account
Leave it there and forget it

4. You get a $400 monthly raise. The plan lets you raise your contribution.

Keep the same contribution, enjoy the raise
Send the whole raise to retirement
Send half the raise to retirement

What you will learn

Grab the full employer match: an instant 50% or more.
Starting at 30 instead of 40 roughly doubles your nest egg.
Send part of each raise to savings, as much as the budget allows. Aim for about 15% of income.

Your real-life step

Find out if your job offers a retirement plan and what match it pays. Raise your contribution by at least 1%.

Questions and answers

How much should I save for retirement?

A common guide is 10 to 15% of income, starting in your 20s or 30s. The later you start, the higher the share you need.

When should I start saving for retirement?

As early as possible. Thanks to compounding, money put in during your 20s and 30s grows more than the same money after 40.

Is the state pension enough to live on?

In many countries it replaces only part of your former income. Rules vary by country, and personal savings close the gap.

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Numbers are illustrative. A game, not financial advice.