How much do you need to retire?
Your target depends on the income you want, how long retirement lasts, and how much Social Security or a pension covers. This calculator converts the income you want into future dollars, subtracts guaranteed income, and works out the lump sum needed to fund the rest from your retirement age until the age you plan for, using your expected return and inflation.
The 4% rule
A well-known shortcut says you can withdraw about 4% of your savings in the first year of retirement and raise it with inflation, with a good chance the money lasts 30 years. That means you need roughly 25 times the yearly income your savings must provide. For example, if you need $40,000 a year from savings, aim for about $1 million.
How to close a retirement gap
- Get the full employer match in your 401(k). It is an instant return on your money.
- Raise contributions by 1% each year or every time you get a raise.
- Use catch-up contributions once you turn 50.
- Retire a little later. Each extra year adds savings, adds growth and shortens retirement.
- Delay Social Security. Benefits grow for each year you wait past full retirement age, up to age 70.
Common retirement savings benchmarks
Some planners suggest having about 1× your salary saved by 30, 3× by 40, 6× by 50, 8× by 60 and 10× by 67. These are rough guides; your own plan above is a better measure.
Frequently asked questions
Is $1 million enough to retire?
Using the 4% rule, $1 million supports about $40,000 a year of inflation-adjusted withdrawals, plus any Social Security. Whether that is enough depends on your expenses, location and health costs.
What return should I assume?
Many planners use 6% to 7% before retirement for a stock-heavy portfolio and 4% to 5% in retirement for a more conservative mix. Using lower numbers builds in a safety margin.
How much Social Security will I get?
Create an account at ssa.gov to see your personal benefit estimate based on your earnings record.
Does this account for taxes?
No. Withdrawals from traditional 401(k)s and IRAs are taxed as income, while qualified Roth withdrawals are tax-free. Set your income goal high enough to cover taxes.
Projections are hypothetical and not guaranteed. This tool is not financial advice; consider speaking with a licensed financial planner.