I don't see why it is necessary to save 25 percent of your income just for retirement. I would put buying my home as a higher priority and maybe keep your retirement contributions at their current level. Nobody knows what is going to happen in 40 years. You're on track, but the future is not guaranteed to any of us, so I would think more about medium-term goals (such as home and starting a family, if you have that goal) and not just short-term emergency savings (which you have covered) and long-term retirement savings (for which you have a plan in place).You're doing fine as is, just saying that I put home ownership first in my plan. When I look around me, the people who do OK in retirement are not those with millions of dollars -- it wasn't possible for working people back then to save up that kind of money -- but the people who made a point to pay off their homes. Without rent to pay, then even a smaller retirement fund or a Social Security based retirement can be comfortable. So for me I put a premium on getting a home I could pay off and manage easily. Others get the bigger home, let it appreciate, and then cash out with some big profit before buying a smaller place to retire in. That can work VERY well also.
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