Retirement Calculator US

How Much Do You Need to Retire?

Use this retirement calculator to create your retirement plan

Current Age:

Retirement Age:

Current Retirement Savings ($):

Current Annual Income ($):

Retirement Income Needed (% of current income):

80%

Life Expectancy:

Inflation Rate (%):

2.5%

Investment Return (% per year before retirement):

Investment Return (% per year during retirement):

Your Retirement Summary

You need approximately $0 saved by retirement.

To reach this goal, you should save about $0 per year (0% of your income).

Your monthly savings target: $0

Key Assumptions

You'll retire at age 65 and live until age 90.
You'll need 80% of your pre-retirement income.
Annual inflation rate of 2.5%.
Investment returns of 7% before retirement and 5% during retirement.
This calculator does not account for Social Security benefits or other sources of retirement income.

How Much Do You Really Need to Retire? The 2025 Guide to Financial Freedom

Planning for retirement can feel like navigating through fog. With economic uncertainties, changing investment landscapes, and longer lifespans, the question “How much do I need to retire?” has never been more complex—or more important.

The Outdated 4% Rule: Why It Might Not Work Anymore

For decades, financial advisors relied on the “4% rule”—withdraw 4% of your retirement savings annually, and your money should last 30 years. But today’s low-yield environment and increased longevity have made this rule questionable at best.

“What worked in the 1990s doesn’t necessarily apply today,” says financial planner Rebecca Moreno. “Interest rates, market volatility, and life expectancy have all changed significantly.”

Calculating Your Personal Retirement Number

Instead of following outdated rules of thumb, consider these factors to determine your personal retirement needs:

1. Estimate Your Annual Expenses

Start by tracking current spending, then adjust for retirement. While some expenses decrease (commuting, work clothes), others may increase (healthcare, leisure activities). Most retirees need 70-80% of their pre-retirement income, but this varies widely based on your lifestyle plans.

2. Factor in Retirement Duration

With many Americans living into their 90s, plan for a 30-year retirement if you’re aiming to stop working at 65. This means your savings must withstand decades of inflation and market fluctuations.

3. Consider Healthcare Costs

Recent studies show the average 65-year-old couple will need approximately $315,000 for healthcare expenses in retirement—beyond what Medicare covers. Long-term care adds another significant variable.

4. Account for Inflation

Even modest 2.5% annual inflation will cut your purchasing power in half over 30 years. Your retirement plan must include investments that outpace inflation.

The 25X Rule: A Better Starting Point

A more reliable approach is the “25X rule”: multiply your expected annual retirement expenses by 25. This calculation assumes a 4% withdrawal rate but focuses on your specific expense needs.

For example, if you need $60,000 annually in retirement: $60,000 × 25 = $1.5 million

This provides a baseline target, but it’s just the beginning.

Beyond the Basics: Additional Considerations

Your retirement number isn’t just about mathematics—it’s about life planning:

Location matters: Retiring in a lower-cost area can reduce your required savings by 20-30%.
Work flexibility: Part-time work in early retirement can significantly extend your savings.
Social Security timing: Delaying benefits until age 70 can increase your monthly payment by up to 32% compared to claiming at 62.
Tax efficiency: Strategic withdrawal planning across different account types (401(k), Roth IRA, taxable accounts) can preserve thousands in retirement funds.

The Bottom Line

While the average American might need $1-1.5 million for a comfortable retirement, your number could be significantly different. The most successful retirement plans combine rigorous calculation with personal values and priorities.

“The goal isn’t just financial security,” notes retirement coach Sandra Williams. “It’s having enough resources to live the life you envision.”

Start by determining what retirement looks like for you, then work backward to calculate your number. Revisit your plan annually, adjusting as your circumstances and goals evolve.

Remember: Retirement planning isn’t about reaching a magic number—it’s about creating financial freedom that supports your ideal lifestyle for decades to come.