Written and maintained by Christin Bowles, founder of TidyCalcs.
If you start at 30 and earn an average 7% a year, you need to save about $555 a month for 35 years to have $1 million at 65. Start at 40 and it is about $1,234 a month. Start at 50 and it is about $3,155 a month. The earlier you start, the less each month costs you.
Monthly savings needed to reach $1 million by 65
These figures assume you save the same amount at the end of every month until age 65, earn a steady average return, and do not adjust for inflation or fees. Real returns rise and fall each year, so treat the table as a planning guide, not a promise.
Monthly amount needed for $1,000,000 at age 65
| Starting age | At 5% | At 7% | At 9% |
|---|---|---|---|
| 25 | $655 | $381 | $214 |
| 30 | $880 | $555 | $340 |
| 35 | $1,202 | $820 | $546 |
| 40 | $1,679 | $1,234 | $892 |
| 45 | $2,433 | $1,920 | $1,497 |
| 50 | $3,741 | $3,155 | $2,643 |
| 55 | $6,440 | $5,778 | $5,168 |
Waiting from age 30 to age 40 more than doubles the monthly cost at 7%, from $555 to $1,234. At 30 you would put in about $233,000 of your own money over 35 years and your investments would supply the other roughly $767,000.
Run your own numbers
Enter your age, current savings and expected return to see what you need to save each month.
Retirement Calculator → Compound Interest Calculator →Is $1 million enough?
That depends on how much you spend and what other income you will have. A common rule of thumb is to withdraw about 4% a year in retirement, which is $40,000 a year, before taxes, from $1 million. Social Security and any pension would come on top of that. Also remember that inflation shrinks what $1 million buys over 30 or 40 years, so some people aim for a larger number. To see where you stand at your age, check how much retirement savings people have by age.
Ways to close the gap
Get the full employer match first. Matching contributions are added to your own, so they lower the amount you must save from your paycheck. See how 401(k) matching works.
Raise your savings a little each year. Increasing your contribution by 1% of pay each year is far easier than a big jump later.
Understand the growth. The reason starting early is so powerful is explained in how compound interest works, and you can test your own plan in the 401(k) calculator.
Sources and further reading
For independent, authoritative information on this topic, these are good places to start:
- IRS: 401(k) plans — how 401(k) plans work, including contribution rules.
- Social Security Administration: Retirement benefits — estimating the Social Security income you can add to your savings.
Results are estimates for planning purposes and are not financial or investment advice. Investment returns are not guaranteed and will vary. A qualified professional can provide figures specific to your situation.
Common questions
How much do I need to save per month to have $1 million by 65?
Starting at 30 and earning an average 7% a year, about $555 a month. Starting at 40 it is about $1,234, and starting at 50 about $3,155. The table above shows every age from 25 to 55.
Is $1 million enough to retire on?
It depends on your spending, Social Security and other income, and when you retire. A common rule of thumb is withdrawing about 4% a year, or $40,000 a year before taxes from $1 million. Inflation will reduce what that buys over time.
What return should I assume?
Many planners use 5% to 7% a year for a diversified stock-heavy portfolio, though returns vary from year to year and are not guaranteed. That is why the table shows 5%, 7% and 9%.
What if I am starting late?
You will need to save more each month, but it still works. Saving more, working a few years longer, or adjusting your target all change the result. Try the Retirement Calculator with your own numbers.
Does an employer 401(k) match count toward the total?
Yes. Matching contributions add to your own, so they reduce what you need to save from your paycheck. Capturing the full match is usually the best first step.