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 2026 forward-looking estimate) 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 |
|---|---|---|---|---|
| 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) | $4,400 self-only / $8,750 family | Triple tax advantage |
| 3 | Roth IRA | $7,500 ($8,600ish with 50+ catch-up — confirm current catch-up amount) | 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 at FRA) |
| 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.
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