Contribution Rate

The contribution rate is the percentage of your income that you set aside or pay into a savings or benefit plan, such as a retirement fund or insurance policy. It determines how much of your earnings are allocated to these programs over time. For example, if your contribution rate is 5% and you earn $1,000, you're contributing $50. This rate helps ensure consistent saving or funding for future needs, and it’s often determined by your employer, plan rules, or your personal financial goals.