The most important question in personal finance: do you have enough to retire? Here’s how to calculate your number.
How Much You Need to Retire
By Desired Annual Income (4% Rule)
| Annual Retirement Income | Savings Needed (4% Rule) | Savings Needed (3.5% Rule) | Savings Needed (3% Rule) |
|---|---|---|---|
| $30,000 | $750,000 | $857,000 | $1,000,000 |
| $40,000 | $1,000,000 | $1,143,000 | $1,333,000 |
| $50,000 | $1,250,000 | $1,429,000 | $1,667,000 |
| $60,000 | $1,500,000 | $1,714,000 | $2,000,000 |
| $75,000 | $1,875,000 | $2,143,000 | $2,500,000 |
| $80,000 | $2,000,000 | $2,286,000 | $2,667,000 |
| $100,000 | $2,500,000 | $2,857,000 | $3,333,000 |
| $125,000 | $3,125,000 | $3,571,000 | $4,167,000 |
| $150,000 | $3,750,000 | $4,286,000 | $5,000,000 |
| $200,000 | $5,000,000 | $5,714,000 | $6,667,000 |
4% rule = 25x expenses. 3.5% = 28.6x. 3% = 33.3x (most conservative). Social Security income reduces the amount needed from savings.
After Social Security (More Realistic)
| Pre-Retirement Income | Social Security (est.) | Income Gap | Savings Needed (4% Rule) |
|---|---|---|---|
| $50,000 | $18,000/yr | $32,000 | $800,000 |
| $75,000 | $24,000/yr | $51,000 | $1,275,000 |
| $100,000 | $30,000/yr | $70,000 | $1,750,000 |
| $125,000 | $34,000/yr | $91,000 | $2,275,000 |
| $150,000 | $37,000/yr | $113,000 | $2,825,000 |
| $200,000 | $40,000/yr | $160,000 | $4,000,000 |
Assumes retirement spending = 80% of pre-retirement income. Social Security estimates based on full retirement age claiming.
Retirement Savings Benchmarks by Age
Fidelity’s Rule of Thumb: Multiples of Salary
| Age | Savings Target | If Salary = $60K | If Salary = $85K | If Salary = $120K |
|---|---|---|---|---|
| 25 | 0.5x salary | $30,000 | $42,500 | $60,000 |
| 30 | 1x salary | $60,000 | $85,000 | $120,000 |
| 35 | 2x salary | $120,000 | $170,000 | $240,000 |
| 40 | 3x salary | $180,000 | $255,000 | $360,000 |
| 45 | 4x salary | $240,000 | $340,000 | $480,000 |
| 50 | 6x salary | $360,000 | $510,000 | $720,000 |
| 55 | 7x salary | $420,000 | $595,000 | $840,000 |
| 60 | 8x salary | $480,000 | $680,000 | $960,000 |
| 67 | 10x salary | $600,000 | $850,000 | $1,200,000 |
Monthly Savings Needed to Reach $1 Million
| Current Age | Years to 65 | Current Savings | Monthly Needed (7% return) | Monthly Needed (10% return) |
|---|---|---|---|---|
| 22 | 43 | $0 | $340 | $155 |
| 25 | 40 | $0 | $415 | $200 |
| 25 | 40 | $25,000 | $345 | $140 |
| 30 | 35 | $0 | $620 | $325 |
| 30 | 35 | $50,000 | $430 | $155 |
| 35 | 30 | $0 | $920 | $530 |
| 35 | 30 | $100,000 | $520 | $150 |
| 40 | 25 | $0 | $1,400 | $885 |
| 40 | 25 | $150,000 | $620 | $150 |
| 45 | 20 | $0 | $2,200 | $1,540 |
| 45 | 20 | $200,000 | $700 | $230 |
| 50 | 15 | $0 | $3,700 | $2,870 |
| 50 | 15 | $300,000 | $800 | $320 |
| 55 | 10 | $0 | $7,200 | $6,100 |
| 55 | 10 | $500,000 | $750 | $470 |
Monthly Savings Needed to Reach $2 Million
| Current Age | Years to 65 | Current Savings | Monthly Needed (7% return) |
|---|---|---|---|
| 25 | 40 | $0 | $830 |
| 25 | 40 | $50,000 | $690 |
| 30 | 35 | $0 | $1,240 |
| 30 | 35 | $100,000 | $860 |
| 35 | 30 | $0 | $1,840 |
| 35 | 30 | $150,000 | $900 |
| 40 | 25 | $0 | $2,800 |
| 40 | 25 | $250,000 | $1,060 |
| 45 | 20 | $0 | $4,400 |
| 45 | 20 | $400,000 | $1,030 |
| 50 | 15 | $0 | $7,400 |
| 50 | 15 | $500,000 | $2,160 |
Where to Save: Account Priority
| Priority | Account | 2026 Limit | Why This Order |
|---|---|---|---|
| 1 | 401(k) to employer match | Match amount | Free 50-100% return |
| 2 | HSA (if eligible) | $4,300/$8,550 | Triple tax advantage |
| 3 | Roth IRA | $7,000/$8,000 (50+) | Tax-free growth forever |
| 4 | 401(k) to max | $23,500/$31,000 (50+) | Tax-deferred growth |
| 5 | Mega backdoor Roth (if available) | Up to $70,000 total | Tax-free growth |
| 6 | Taxable brokerage | No limit | Flexible, lower capital gains rates |
| 7 | I Bonds | $10,000/year | Inflation protected, safe |
Retirement Spending Reality Check
What Retirees Actually Spend (Average by Category)
| Category | Average Monthly | Annual |
|---|---|---|
| Housing (including property tax, insurance) | $1,573 | $18,876 |
| Healthcare (premiums, copays, prescriptions) | $720 | $8,640 |
| Transportation | $667 | $8,004 |
| Food (home + dining) | $612 | $7,344 |
| Insurance (non-health) | $344 | $4,128 |
| Utilities | $308 | $3,696 |
| Entertainment | $235 | $2,820 |
| Personal care & services | $112 | $1,344 |
| Clothing | $95 | $1,140 |
| Gifts/donations | $250 | $3,000 |
| Total average | $4,916 | $58,992 |
Healthcare Costs in Retirement
| Item | Annual Cost (est.) |
|---|---|
| Medicare Part B premiums (2026) | $2,200 |
| Medicare Part D premiums | $400-$1,200 |
| Medigap/supplement policy | $1,800-$4,800 |
| Out-of-pocket costs | $2,000-$5,000 |
| Dental/vision (not covered by Medicare) | $1,000-$3,000 |
| Total healthcare cost | $7,400-$16,200 |
| Lifetime healthcare cost (couple, Fidelity est.) | $315,000+ |
Are You on Track? Quick Assessment
| Your Age | Your Savings | Status |
|---|---|---|
| 30 | Less than 0.5x salary | Behind — increase contributions now |
| 30 | 0.5x-1x salary | On track — maintain current savings rate |
| 30 | More than 1x salary | Ahead — great position |
| 40 | Less than 1.5x salary | Behind — need to catch up significantly |
| 40 | 1.5x-3x salary | On track — keep it up |
| 40 | More than 3x salary | Ahead — early retirement possible |
| 50 | Less than 3x salary | Behind — maximize catch-up contributions |
| 50 | 3x-6x salary | On track — stay the course |
| 50 | More than 6x salary | Ahead — very comfortable retirement |
| 60 | Less than 5x salary | Behind — consider working longer or reducing expenses |
| 60 | 5x-8x salary | On track — refine withdrawal strategy |
| 60 | More than 8x salary | Ahead — plan legacy and tax optimization |
Catching Up If You’re Behind
| Age | Strategy | Impact |
|---|---|---|
| 30-40 | Increase savings rate by 5% | Adds $300K-$500K by 65 |
| 40-50 | Max 401(k) + Roth IRA | $30,500/year → $500K+ by 65 |
| 50+ | Use catch-up contributions ($7,500 401(k) extra) | $175K+ additional by 65 |
| 60-63 | Super catch-up ($11,250 extra in 401(k)) | Significant boost in final years |
| Any age | Delay Social Security to 70 | 24-32% higher monthly benefit |
| Any age | Reduce expenses by $500/mo | Need $150K less in savings |
| Any age | Work 2 more years | 2 more years of saving + 2 fewer years of withdrawals |
Related: Average Retirement Savings | How Much to Retire | 4% Rule | 401(k) Contribution Limits | Social Security Benefits | Compound Interest Calculator