How much do I need to retire?

A common rule of thumb is the 25x Rule: multiply your desired annual retirement income by 25. If you need $60,000/year, you need $1.5 million saved. This is based on the 4% safe withdrawal rate.

How much should I have saved for retirement by age?

A common benchmark: 1x salary by 30, 3x by 40, 6x by 50, 8x by 60, 10x by 67. So someone earning $70,000 should aim for $70K saved by 30, $210K by 40, $420K by 50.

🏖️ Finance & Investment

Retirement Savings Calculator

Q: What is the 4% rule in retirement?

The 4% rule states you can withdraw 4% of your retirement portfolio in year one, then adjust for inflation each year, with high probability of the money lasting 30+ years. It is based on historical market returns.

Find out exactly how much you'll have at retirement, whether you're on track, and how much you need to save each month to hit your goal. Includes inflation adjustment and savings benchmarks.

Calculate Your Retirement

Current Age

Retirement Age

Current Savings ($)

Monthly Contribution ($)

Expected Annual Return (%)

Desired Annual Income in Retirement ($)

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Progress toward retirement goal0%

PROJECTED SAVINGS

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RETIREMENT GOAL (25x)

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YEARS TO RETIREMENT

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NEEDED/MO TO HIT GOAL

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Savings benchmarks by age (based on your income goal)

How Much Do You Need to Retire?

The most widely used rule of thumb is the 25x Rule — also known as the retirement number formula. Multiply your desired annual retirement income by 25 to get your target retirement savings:

Retirement Number = Annual Income Needed × 25 Example: $60,000/year × 25 = $1,500,000 needed This is based on the 4% safe withdrawal rate

The 25x Rule comes from the 4% Safe Withdrawal Rate, a guideline derived from extensive research (the "Trinity Study") showing that withdrawing 4% of a diversified portfolio annually has historically lasted 30+ years in nearly all market scenarios.

Retirement Savings Benchmarks by Age

Fidelity Investments publishes widely-referenced retirement savings benchmarks based on your salary. These are targets to keep you on pace for a comfortable retirement at age 67:

Age 30: 1× your annual salary saved
Age 35: 2× your annual salary saved
Age 40: 3× your annual salary saved
Age 50: 6× your annual salary saved
Age 55: 7× your annual salary saved
Age 60: 8× your annual salary saved
Age 67: 10× your annual salary saved

So if you earn $70,000/year and are 40 years old, you should have approximately $210,000 saved for retirement.

401(k) vs IRA: Maximizing Tax-Advantaged Accounts

401(k) — Employer-Sponsored Plan

The 401(k) is the cornerstone of most American retirement plans. In 2026, the contribution limit is $23,500 ($31,000 if age 50+). Crucially, most employers offer a matching contribution — typically 3–6% of salary. This is free money and should always be maximized before any other investment.

Traditional IRA

Individual Retirement Accounts allow up to $7,000/year ($8,000 if 50+) in tax-deductible contributions (income limits apply). Taxes are paid on withdrawal in retirement, ideally when you're in a lower tax bracket.

Roth IRA

Same contribution limits as Traditional IRA, but contributions are made after-tax and all withdrawals in retirement are tax-free. This is particularly powerful for younger people who expect to be in a higher tax bracket later. Roth is generally the better choice if you're early in your career.

💡 The Priority Order

1. 401(k) up to employer match (free money) → 2. Pay off high-interest debt → 3. Max out Roth IRA → 4. Max out remaining 401(k) → 5. Taxable investment accounts.

The Impact of Starting Early: A Case Study

Two people both want to retire at 65 with $1.5 million, assuming 7% annual returns:

Alex starts at 25: Needs to save $488/month for 40 years. Total contributed: $234,240. Interest does the rest.
Jordan starts at 45: Needs to save $3,436/month for 20 years. Total contributed: $824,640 — more than 3.5× more money for the same outcome.

Every decade of delay roughly triples the monthly savings required. There is no financial decision more impactful than starting early.

Frequently Asked Questions

What is the 4% rule in retirement?

The 4% rule states you can safely withdraw 4% of your retirement portfolio in year one, then adjust for inflation each subsequent year, with historically high probability of the money lasting 30+ years. It is a guideline, not a guarantee — sequence of returns risk in early retirement years can still derail the plan.

How does Social Security affect my retirement number?

Social Security provides income that reduces how much you need to withdraw from savings. If you expect $24,000/year in Social Security and need $60,000/year, your portfolio only needs to generate $36,000/year — meaning you need $900,000 (36,000 × 25) rather than $1,500,000. Always factor Social Security into your retirement plan.

What if I'm behind on retirement savings?

Catching up is very possible. Strategies include: maximizing catch-up contributions (extra $7,500/yr in 401k after age 50), delaying retirement even 2–3 years (dramatically reduces the required nest egg), reducing planned retirement spending, and generating part-time income in early retirement years. Don't panic — take action instead.