Before you start grumbling (when I tell you we’re going to take a little nip out of your paycheck), let’s remember it’s for a good cause … your retirement. Take a deep breath. Okay, now onto the math. On your enrollment form, you elect a percent contribution. This is the amount you want to put into retirement savings every time you get paid. Of course, before you can pick a percent, you’ll want to know how much will be missing from every paycheck. Here’s what to do:

• Step 1 – Pull out a recent pay stub and find the amount of your gross pay. (This is the amount you are paid before taxes are figured.)
• Step 2 – Choose a percent contribution and multiply it by your gross pay. (For example, if you’re considering a 5% contribution, multiply your gross income by .05) Look, we have some examples.
• Step 3 – Evaluate the result. Could you get along if that amount of money was deducted from your pay each paycheck? If yes, try a higher percent contribution. If no, try a lower percent contribution.
• Step 4 – Arrive at a percent contribution you can live with and write it on your enrollment form.