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). These are long-standing planning benchmarks — current research narrows the debate to roughly 3.9% (Morningstar’s 2025 research, published December 2025) to 4.7%+ (Bengen’s 2025 update with a more diversified portfolio). Social Security income reduces the amount needed from savings.
After Social Security (More Realistic, illustrative figures)
Pre-Retirement Income
Illustrative Social Security
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 are illustrative approximations based on full retirement age claiming — get your own estimate at ssa.gov for accurate planning.
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
30
1x salary
$60,000
$85,000
$120,000
35
2x salary (estimate)
$120,000
$170,000
$240,000
40
3x salary
$180,000
$255,000
$360,000
45
4x salary (estimate)
$240,000
$340,000
$480,000
50
6x salary
$360,000
$510,000
$720,000
55
7x salary (estimate)
$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
Fidelity publishes savings milestones only at ages 30, 40, 50, 60 and 67; the rows marked as estimates are in-between figures, not Fidelity’s.
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
Immediate match, subject to vesting
2
HSA (if eligible)
$4,400 self-only / $8,750 family
Triple tax advantage
3
Roth IRA
$7,500 ($8,600 at 50+ with the $1,100 catch-up, 2026)
Tax-free growth forever
4
401(k) to max
$24,500 ($32,500 with 50+ catch-up; $35,750 for ages 60-63)
Tax-deferred growth
5
Mega backdoor Roth (if available)
Up to $72,000 total (combined employee + employer 415(c) limit; $80,000 with 50+ catch-up, $83,250 for ages 60-63)
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)
~$1,570
~$18,900
Healthcare (premiums, copays, prescriptions)
~$720
~$8,600
Transportation
~$665
~$8,000
Food (home + dining)
~$610
~$7,300
Insurance (non-health)
~$345
~$4,100
Utilities
~$310
~$3,700
Entertainment
~$235
~$2,800
Personal care & services
~$110
~$1,300
Clothing
~$95
~$1,100
Gifts/donations
~$250
~$3,000
Total average
~$4,900
~$59,000
Source: Bureau of Labor Statistics Consumer Expenditure Survey (households 65+), rounded planning estimates. BLS updates this annually — confirm the latest release at bls.gov/cex.
Healthcare Costs in Retirement
Item
Annual Cost (est.)
Medicare Part B premiums (2026 standard)
$2,435 ($202.90/mo)
Medicare Part D premiums
Varies by plan — confirm current quotes
Medigap/supplement policy
Varies by age/state/insurer — confirm current quotes
Out-of-pocket costs
$2,000-$5,000
Dental/vision (not covered by Medicare)
$1,000-$3,000
Total healthcare cost
Commonly $7,000-$16,000+ depending on Medigap/Part D choices
Lifetime healthcare cost (couple)
Industry estimates (e.g., Fidelity) commonly run into six figures — confirm the current-year estimate, since it’s updated annually
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%
Can add substantially to your balance by 65
40-50
Max 401(k) + Roth IRA
Roughly $32,000/year (2026 combined limits) → meaningfully more by 65
50+
Use catch-up contributions ($8,000 extra in 401(k), 2026)
Meaningful additional boost by 65
60-63
Super catch-up ($11,250 extra in 401(k), replaces the standard 50+ catch-up)
Significant boost in final years
Any age
Delay Social Security to 70
Meaningfully higher monthly benefit (up to 124% of your full benefit if your FRA is 67)
Any age
Reduce expenses by $500/mo
Need roughly $150K less in savings (at a 4% withdrawal rate)
Any age
Work 2 more years
2 more years of saving + 2 fewer years of withdrawals
Sources
For more on building a sustainable retirement paycheck, see the Retirement Income hub.
WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy
