You should definitely contribute more money to your retirement account if you can rather then to your loan payment. Six percent is a good amount to contribute to begin with, however studies show that when you are in your 20's, it is best to be contributing at least ten percent of your salary into your retirement funds. In the end though, there is not a set formula to this. More is always better and you really can not save too much for retirement. The amount that you contribute to your retirement can also grow in your age with people that are in their thirties and forties reporting that they put anywhere from up to twenty percent of their salary towards retirement. It is also possible to find alternative sources to save towards retirement rather then just contributing funds into a retirement account. One route to consider is potentially investing in a mutual fund. Mutual funds can invest in everything from stocks to treasury bonds and each investor gets a slice of the fund as time progresses and the fund reaches maturity. Mutual funds are a bit more risky then your standard retirement account, however if you wanted to allocate a portion of your funds to such an investment strategy, they do seem to be very profitable overall. Looking into various investment strategies and options would be a very good route for you to consider, and would make it possible for you to ease the financial burden that comes along with retirement. Look into saving as much money as possible without putting yourself into a financial hole. Look into a variety of options such as mutual funds, IRA's, savings accounts, and more. Try and map out a plan with the amount that you feel that you will need for retirement and how much you would need to save for a certain amount of years to get there. In the end, these are the best ways to go about maintaining and planning for a successful and happy retirement. Paying off your loan is important of course but retirement should always be a priority. The best advice therefore is to pay off your loan at the standard rate and focus on investing as much as possible into your retirement.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by a WalletHub user. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.