"How much do I need to retire?" is the #1 question in retirement planning. The answer depends on your desired lifestyle, other income sources (Social Security, pension), and retirement age.
This guide gives you concrete savings targets by age and income level, plus teaches you how to calculate your personal number.
The 4 Major Methods to Calculate "How Much"
Method 1: The 4% Rule (Most Popular)
The 4% rule says you can safely withdraw 4% of your portfolio in year 1, then adjust for inflation each year. Your portfolio has a ~95% chance of lasting 30 years.
Example: You need $80,000/year in retirement. Social Security provides $25,000/year. You need to cover $55,000/year from savings.
Target portfolio = $55,000 ÷ 0.04 = $1,375,000.
Method 2: Replacement Ratio (Fidelity's Guideline)
Fidelity recommends saving 10× your final salary by retirement age. This assumes you need ~45% of pre-retirement income (after accounting for Social Security, lower taxes, and no work expenses).
| Current Age | Salary Multiple (Fidelity Target) | Example: $100k Salary → Target |
|---|---|---|
| 30 | 1× | $100,000 |
| 35 | 2× | $200,000 |
| 40 | 3× | $300,000 |
| 45 | 4× | $400,000 |
| 50 | 6× | $600,000 |
| 55 | 7× | $700,000 |
| 60 | 8× | $800,000 |
| 67 (retire) | 10× | $1,000,000 |
Method 3: The 80% Rule (Conservative)
Some experts recommend replacing 80% of pre-retirement income (not 45%). This assumes you'll maintain your pre-retirement lifestyle.
Example: $100k pre-retirement income → need $80k/year in retirement → target portfolio = $80,000 ÷ 0.04 = $2,000,000.
Method 4: Build-Your-Own Budget (Most Accurate)
The most accurate method: create a detailed retirement budget (housing, healthcare, travel, etc.) and subtract other income sources.
2026 Retirement Savings Targets by Age (Middle-Income Example)
Example: Household Income $80,000/year
| Age | Target (4% Rule, Modest Lifestyle) | Target (4% Rule, Comfortable Lifestyle) |
|---|---|---|
| 30 | $50,000 (0.6× salary) | $80,000 (1× salary) |
| 35 | $100,000 (1.3×) | $160,000 (2×) |
| 40 | $180,000 (2.3×) | $280,000 (3.5×) |
| 45 | $280,000 (3.5×) | $450,000 (5.6×) |
| 50 | $400,000 (5×) | $650,000 (8×) |
| 55 | $550,000 (6.9×) | $900,000 (11×) |
| 60 | $750,000 (9.4×) | $1,200,000 (15×) |
| 65 (retire) | $1,000,000 | $1,600,000 |
Assumptions: Retire at 65, Social Security replaces ~$25k/year, 4% withdrawal rule, 2.5% inflation.
Calculate Your Personal "Number" with Our Free Tool
Instead of using generic targets, use our Nest Egg Planner to calculate your personal retirement savings target based on:
- Your current age and retirement age
- Your current portfolio balance
- Your expected Social Security benefits
- Your desired retirement lifestyle (Go-Go / Slow-Go / No-Go spending)
- Your state's tax situation
🧮 Calculate Exactly How Much YOU Need
Free, instant, personalized to your situation.
Open Nest Egg Planner →Frequently Asked Questions
Is the 4% rule still valid in 2026?
Some researchers argue the 4% rule is too aggressive in today's low-bond-yield environment. A more conservative approach is 3.5% (which requires a larger portfolio). Our calculator lets you adjust the withdrawal rate.
What if I have a pension — do I still need $1M+?
No. A pension reduces the amount you need to save. Example: If your pension pays $30,000/year and Social Security pays $25,000/year, you only need to cover the gap from savings.
How much do I need to retire at 55 vs. 65?
Retiring at 55 requires ~30% more savings than retiring at 65, because: (1) You have 10 fewer years to save, (2) You have 10 more years of withdrawals, (3) You can't claim Social Security until 62. Early retirement is expensive!