How to Money · Monday, September 14, 2026
A listener named Anonymous is unsure whether to include employer contributions when calculating their savings rate. The hosts suggest that while consistency is key, it's often more beneficial to calculate personal savings rate based on individual contributions, excluding employer match. This is because employer contributions are not within the individual's control and could change, potentially skewing the perceived savings rate and creating financial hardship if relied upon.
“I prefer to lean towards not factoring in the match into my savings rate. That's because like going back to Renee's question, 6% of her savings rate could be thanks to her employer's generosity.”
“And I think for some people, let's say you have a 6% match and the goal is to get a 15% savings rate. You're like, great, I'm in 9%, 6% of my 401k, 3% towards my emergency fund of my income. I'm hitting my savings rate.”
“But the part you don't have control of can move quickly. And then you find, actually, wow, now my savings rate kind of sucks. Like it's subpar. It's not where it should be.”