How Much Do I Need to Retire?
Retirement savings targets by income, age benchmarks, couple vs. single needs, and the 4% rule explained with real numbers.
The 4% Rule — Quick Answer
Multiply your expected annual retirement spending by 25. That's your target nest egg.
$40K/yr spending: $1,000,000 needed$60K/yr spending: $1,500,000 needed$80K/yr spending: $2,000,000 needed$100K/yr spending: $2,500,000 needed$120K/yr spending: $3,000,000 needed$3K/mo ($36K/yr): $900,000 needed
Retirement Savings Target by Annual Spending
| Annual Spending in Retirement | Monthly Budget | Savings Needed (4% rule) | Couple Target (~1.6×) |
|---|---|---|---|
| $40,000/yr | $3,333/mo | $1,000,000 | $1,600,000 |
| $50,000/yr | $4,167/mo | $1,250,000 | $2,000,000 |
| $60,000/yr | $5,000/mo | $1,500,000 | $2,400,000 |
| $75,000/yr | $6,250/mo | $1,875,000 | $3,000,000 |
| $80,000/yr | $6,667/mo | $2,000,000 | $3,200,000 |
| $100,000/yr | $8,333/mo | $2,500,000 | $4,000,000 |
| $120,000/yr | $10,000/mo | $3,000,000 | $4,800,000 |
* Couple target assumes 1.6× single spending. Social Security income reduces required savings — see withdrawal guide for details.
Am I On Track? Savings Benchmarks by Age
Salary:
| Age | Benchmark (Fidelity) | Target for $75,000 salary | If Behind |
|---|---|---|---|
| Age 25 | 0.5× salary | $37,500 | Open Roth IRA, maximize match |
| Age 30 | 1× salary | $75,000 | Open Roth IRA, maximize match |
| Age 35 | 2× salary | $150,000 | Open Roth IRA, maximize match |
| Age 40 | 3× salary | $225,000 | Boost contributions 1–2%/yr |
| Age 45 | 4× salary | $300,000 | Boost contributions 1–2%/yr |
| Age 50 | 6× salary | $450,000 | Boost contributions 1–2%/yr |
| Age 55 | 7× salary | $525,000 | Catch-up contributions ($7,500 extra/yr in 401k) |
| Age 60 | 8× salary | $600,000 | Catch-up contributions ($7,500 extra/yr in 401k) |
| Age 67 | 10× salary | $750,000 | Catch-up contributions ($7,500 extra/yr in 401k) |
* Fidelity benchmarks assume retiring at 67 and replacing 45% of pre-retirement income from savings. Social Security covers remaining income.
Average vs. Median Retirement Savings by Age (2024)
| Age Group | Median Savings | Average Savings | Note |
|---|---|---|---|
| Under 35 | $18,880 | $49,130 | Most still building habits |
| 35–44 | $45,000 | $141,520 | Prime contribution years |
| 45–54 | $115,000 | $313,220 | Catch-up contributions available at 50 |
| 55–64 | $185,000 | $537,560 | Final accumulation phase |
| 65+ | $200,000 | $609,230 | Distribution phase begins |
* Source: Federal Reserve Survey of Consumer Finances. Median is far lower than average due to high-wealth outliers skewing averages.
Check Your Retirement Number
Frequently Asked Questions
The most widely used rule: save 25× your expected annual retirement spending (the '4% rule'). If you expect to spend $60,000/year in retirement, you need $1.5 million. For $80,000/year: $2 million. This assumes a 30-year retirement, a diversified portfolio, and a 4% annual withdrawal rate. Couples typically need 1.6–1.8× a single person's target since many expenses (housing, insurance) are shared.