The general rule is that you need to save 10% of your income your whole working life in order to retire by 65. Here's the great thing about our tax law. If you participate in your employee 401k, Sep IRA, SIMPLE, etc. then you save the payroll tax plus the fed tax rate of what you are in. Since it's pretax you save possibly 25% (your marginal tax rate) of what you would instead of giving to the govt in taxes.
So for instance if you put $100 away for retirement it actually only costs you $75, not $100. When you add in an employer match of 3% you're actually talking about being able to retire on 3%. It's a no brainer! Just remember you've got to do this under the right circumstances, over 40 years. DON'T LEAVE IT TO CHANCE THOUGH, SAVE TWICE AS MUCH! I bet you won't even notice it's gone.
-CC
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