A Savings Hack: The 1% More Rule

Retirement planning can sometimes feel overwhelming. We may think meaningful progress requires a large contribution or a painful reduction in our current lifestyle. But one of the most effective approaches is also one of the simplest: increase your retirement contribution by just 1% each year—or each time you receive a raise.

If you are currently contributing 5% of your pay, increase it to 6%. When your next raise comes, move to 7%. By directing a small portion of each increase toward retirement before it becomes part of your regular spending, you can gradually save more without feeling a significant difference in your paycheck.

For someone earning $50,000 annually, 1% equals $500 per year, or about $42 per month. That may not sound like much, but when those contributions are invested consistently and allowed to compound over many years, the results can be substantial. The real power is not found in one large step, but in a faithful habit repeated over time.

This principle reflects biblical wisdom. Proverbs 13:11 teaches that the person who gathers “little by little” makes it grow. That is steady stewardship—patiently and consistently setting aside a portion of what God has entrusted to us in preparation for the years ahead.

Many BMA Retirement Plan participants establish a contribution rate and never revisit it. The 1% More Rule provides a practical way to change that. Review your current contribution and consider increasing it by 1%. Then make a commitment to do the same each year or whenever your income increases.

We cannot predict every future need, but we can prepare wisely. A small decision today, faithfully repeated, may make a significant difference tomorrow.

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Steve Crawley, PhD

BMA Financial

Executive Director