How much do you need to retire?
The most widely used rule is the 25x rule: multiply your expected annual retirement spending by 25. If you plan to spend $60,000 per year in retirement, you need $1.5 million. This is based on the 4% safe withdrawal rate — the idea that you can withdraw 4% of your portfolio each year and not run out of money over a 30-year retirement.
The power of starting early
Time in the market is far more powerful than the amount you contribute. Someone who starts saving $500/month at 25 will have significantly more at 65 than someone who saves $1,000/month starting at 45 — even though the late starter contributes more total dollars. The earlier you start, the less you need to save each month.
What counts as retirement savings?
Include your 401(k), Roth IRA, traditional IRA, 403(b), and any other dedicated retirement accounts. Don't include home equity or taxable brokerage accounts unless you specifically plan to use them for retirement income. Use our net worth calculator to see your full financial picture.
Social Security
This calculator does not include Social Security, which provides an average benefit of roughly $1,907/month (2026). If you plan to receive Social Security, your savings target may be lower. Factor it in by reducing your expected annual retirement spending by your expected annual Social Security benefit.
Sequence of returns risk
Average annual returns don't tell the whole story. A market downturn in the years right before or right after you retire can do outsized damage, because you're withdrawing money from a shrunken balance instead of letting it recover — this is called sequence of returns risk. Two retirees with the identical average 7% return over 30 years can end up with very different outcomes depending on the order those returns happened in, which is one reason many retirees shift toward a more conservative, diversified mix as retirement approaches rather than staying fully invested in stocks right up to the finish line.