You Should Be Saving at Least 12% of Your Pay for Retirement. Here's Why by Carla Fried To reach retirement in solid financial shape, you likely need to up your savings game today. Vanguard reports that the median 401(k) contribution of American workers is 6% of pay. After adding in the median company matching contribution, the total workers are setting aside falls just short of 10%. That may not be enough. Vanguard recommends a total contribution rate of between 12% to 15% of salary.