Invest Retirement

Change Your Life (And Your Retirement) By Becoming A Super Saver

Lindsay Mott  |  January 28, 2024

Want to save more for retirement? Learn from the pros about how to become a super saver and reach your long-term financial goals.

What’s a super saver? A super saver is essentially a modern-day financial unicorn who moves a lot of money to their retirement account every year. The global investment management firm Principal defines “super savers” as those who annually defer 90% or more of the IRS maximum to their retirement accounts or save 15% or more of their salary for retirement. 

While tucking that much away might not be possible for everyone, there are things you can do right now to move in that direction. Here’s how super savers do it.

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The study also shows these savers favor large sacrifices like driving older vehicles (49%) and restricting travel (40%) over short-term cuts to their daily expenses to max out their retirement contributions. For most (74%), the main motivator is for financial security and a good lifestyle in retirement (71%).

“If there’s one common trait of the super savers, it’s that they are dogged savers that are laser focused on accruing enough wealth to create a better financial picture for themselves,” says Sri Reddy, senior vice president of retirement and income solutions at Principal. “Super savers bet on themselves, which means things like volatility and inflation don’t shake them from their financial goals. They embody some of the best practices in retirement savings, so they prioritize consistency and preparation.” 

These people are working strategically to save, and as Ted Rossman, senior industry analyst with, says, they’re likely high earners “saving $20,000 or more annually gets much easier the more you make.” 


Before you can think about maxing out your retirement accounts, you’ve got to prioritize monthly contributions to your 401(k). That means if your employer offers a matching contribution, max out that paycheck deferment to ensure you get the match. The match is essentially free money, notes Reddy. When you put money into a retirement account, you’ll gain the benefit of lowering your taxable income in the process.

You can also establish an “auto-escalation” of your retirement savings each year, Reddy explains. This essentially automatically increases your payroll deductions each year, so that you’re always saving more. Aim to increase savings by at least 1% annually, or when you receive a raise. Do this and you could be a super saver in no time. 


After you meet the 401(k) match, set aside any remaining savings into a high-yield savings account or a Roth IRA. It’s essential to look beyond a traditional savings account that accrues little interest. Instead, try something with a higher return. Also, some high-yield savings accounts are paying more than 5% interest right now


When saving and investing, the rule of thumb is to start as early as possible. Even if it doesn’t seem like you’re able to save much, every dollar counts.

“Albert Einstein noted that compound interest is the eighth wonder of the world,” Rossman says. “In other words, time is one of your biggest assets as an investor. Every dollar you set aside in your 20s or 30s could be worth $15 or $20 by the time you retire. If you earn a 10% return, your money doubles about every seven years. The more time you have to compound, the better.” 

Compounding happens when earnings on your savings are reinvested to generate their own earnings. Make sure to stay disciplined during downturns, too. This is long-term money so don’t get swayed by short-term market moves. 


A good rule of thumb is that you need to save 25 times your expected annual expenses, Rossman says. This idea is that you can withdraw 4% of your portfolio every year and expect it to last for a 25-30-year retirement. There are many variables, including if you have an expensive or frugal lifestyle, and life expectancy.

He says: “Even if you plan to retire at the traditional age of 65, you should plan for your money to last at least 25-30 years. This often means keeping a significant amount of your money invested in stocks, even in retirement. You should have a few years’ worth of expenses in cash or very safe investments such as bonds, but you also need some longevity protection. The growth potential of stocks is important. A rule of thumb is that your stock allocation should be 110 minus your age (so someone who’s 70 might have 40% of their portfolio in stocks). People used to say 100 minus your age, but I think that has changed as people are living longer.”


Times are changing and people are often working longer, often because they choose to do so. “The most important thing to consider before retiring is if you have enough savings and/or additional income to support your desired lifestyle,” Reddy says. “While we all have our own retirement dreams, you need to be able to cover your necessary living expenses. If you feel confident [you can] cover those necessities, you can consider if you have enough saved to achieve your long-term retirement goals.”

If you’re not sure what you might need going into retirement, you can also talk with a financial professional who can look at what you’re contributing to retirement based on your savings and long-term goals. 


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