While the recommended savings rate has historically been 10%, indications are that today, most Americans are putting away less than 5%. How would a retiree fare if she saved 5% of her earnings over her career?Assume Beth, who’s 30, makes $40,000 per year, and expects 3.8% raises until she retires at 67. She also expects an annual return of 6% on her contributions. A 5% savings rate will leave Beth with $423,754 in 2051, when she’s 67. If she needs 85% of her pre-retirement income to live, her savings fall well short of the mark, even with Social Security. She would need $1.3 million at age 67. Saving 10% yields Beth $847,528, still leaving her shy. Not until she increases her savings to 15% does she reach her goal. But that doesn’t mean saving less than 15% will always leave her short. There are other factors to consider. Investment returns may exceed 6%. Her cost of living in retirement may not require 85% of pre-retirement income. She could work until 70, or enjoy faster salary growth than 3.8% a year. On the other hand, more pessimistic scenarios could make even that 15% savings rate insufficient. No one knows for certain what savings rate is enough. What we do know is the sooner you start saving, and the more you put away, the better. Many advisors recommend saving 12 times your annual salary, so a 66-year old making $100,000 a year would need $1.2 million at retirement. But, again, with the future unknown, there’s no magic number.