How much of their salary should employees without a pension plan aim to save throughout their careers?

Employees without a pension plan are encouraged to aim for a savings rate of 10-15% of their salary throughout their careers. This range is considered a practical target, allowing individuals to build a substantial retirement fund over time while balancing their current living expenses. Saving at this rate can help ensure that individuals accumulate enough savings to maintain a comfortable standard of living in retirement, considering that they will not have the additional safety net of a pension.

The rationale behind this suggestion lies in the long-term growth potential of investments. When individuals consistently save and invest their savings, they can benefit from compound interest, which allows their money to grow over time. Aiming for a savings rate within this range helps to strike a balance between being able to invest for the future while also managing present financial needs.

Ultimately, while aiming for 10-15% is a widely recommended benchmark, some might need to adjust their savings plans based on their specific financial circumstances, retirement goals, and lifestyle choices. Therefore, this range serves as a foundation for financial planning toward retirement for those without the benefits of a pension plan.