I’m 53 and want to retire in 12 years. Is 5% enough to put in my 401(k)?

A 53-year-old planning to retire at 65 would need to assess whether a 5% contribution rate to a 401(k) aligns with their retirement goals. Financial planning generally considers factors including current savings, projected expenses, Social Security benefits, and investment returns. The adequacy of a 5% contribution depends on individual circumstances such as existing retirement assets, income level, and desired retirement lifestyle. At age 50, individuals can make catch-up contributions to 401(k)s, allowing higher annual contributions than those under 50. Determining an appropriate savings rate typically involves calculating expected retirement income needs against projected resources.

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