"How much do I need to retire?" is the most important financial question most people will ever ask — and the answer depends on more variables than most retirement calculators show you. This guide walks through the most reliable frameworks, gives you real numbers by income level, and shows you how to calculate your own personal retirement target.
The most widely used retirement target is the 25x rule: save 25 times your expected annual retirement expenses. This comes from the Trinity Study, which found that retirees can withdraw 4% of their portfolio annually with a high probability of not outliving their money over a 30-year retirement.
The formula: Annual retirement expenses × 25 = retirement savings target
| Annual Retirement Spending | Savings Needed (25x) | Monthly from Savings (4%) |
|---|---|---|
| $30,000 | $750,000 | $2,500 |
| $40,000 | $1,000,000 | $3,333 |
| $50,000 | $1,250,000 | $4,167 |
| $60,000 | $1,500,000 | $5,000 |
| $70,000 | $1,750,000 | $5,833 |
| $80,000 | $2,000,000 | $6,667 |
| $100,000 | $2,500,000 | $8,333 |
The numbers above represent what you need from savings alone. Social Security reduces that target significantly. The average Social Security benefit in 2026 is $2,071/month ($24,852/year). A couple with two earners might receive $3,500-$5,000/month combined.
Subtract your expected Social Security income from your annual spending target before applying the 25x rule:
Example: You want $60,000/year in retirement. You expect $24,000/year from Social Security. You need $36,000/year from savings. Target = $36,000 × 25 = $900,000 — not $1.5 million.
Most financial planners use the 70-80% rule: plan to spend 70-80% of your pre-retirement income. Your expenses typically drop in retirement — no more commuting costs, work clothes, saving for retirement itself, or mortgage if paid off.
| Pre-Retirement Income | Target 75% | SS Covers (~$25k) | Need from Savings | Savings Target |
|---|---|---|---|---|
| $50,000 | $37,500 | $24,852 | $12,648 | $316,200 |
| $70,000 | $52,500 | $24,852 | $27,648 | $691,200 |
| $90,000 | $67,500 | $24,852 | $42,648 | $1,066,200 |
| $120,000 | $90,000 | $24,852 | $65,148 | $1,628,700 |
| $150,000 | $112,500 | $24,852 | $87,648 | $2,191,200 |
Fidelity's widely cited benchmarks give you a checkpoint at each decade:
| Age | Target Savings | Based On |
|---|---|---|
| 30 | 1x annual salary | ~$50,000-$60,000 |
| 40 | 3x annual salary | ~$210,000-$240,000 |
| 50 | 6x annual salary | ~$420,000-$480,000 |
| 60 | 8x annual salary | ~$560,000-$640,000 |
| 67 | 10x annual salary | ~$700,000-$800,000 |
Retiring at 60 vs 67 changes everything. You need more savings (longer retirement), and Social Security benefits are reduced if you claim early. Retiring at 62 vs 70 can mean a 76% difference in your monthly Social Security check.
As our state cost of living rankings show, retiring in Mississippi costs about half what retiring in Hawaii costs. Your savings target changes dramatically based on location. The same $1 million nest egg lasts far longer in Arkansas than in California.
Healthcare is often the biggest wildcard. Before Medicare at 65, you may pay $500-$1,500/month for coverage. Even with Medicare, out-of-pocket costs average $6,000-$12,000/year for the typical retiree. Factor in long-term care costs — the average nursing home stay costs $100,000+ per year.
A 65-year-old today has a 50% chance of living past 85 — a 20-year retirement. There's a meaningful chance of living past 90. Plan for 30 years to be safe. Running out of money at 85 is a genuine risk the 4% rule was designed to address.
According to 2026 analysis using Bureau of Labor Statistics expenditure data, here are the minimum savings needed to retire comfortably in select states (after Social Security):
| State | Annual Expenses | After SS (-$24,852) | Savings Needed |
|---|---|---|---|
| Mississippi | $44,400 | $19,548 | $488,700 |
| Arkansas | $46,200 | $21,348 | $533,700 |
| Tennessee | $46,800 | $21,948 | $548,700 |
| Texas | $51,600 | $26,748 | $668,700 |
| Florida | $54,000 | $29,148 | $728,700 |
| National Average | $57,600 | $32,748 | $818,700 |
| Colorado | $63,600 | $38,748 | $968,700 |
| California | $81,600 | $56,748 | $1,418,700 |
| Hawaii | $99,000+ | $74,148+ | $1,853,700+ |
Enter your current savings, monthly contribution, and expected retirement age to see exactly where you'll land.
Use the Retirement Calculator →Most people need roughly 10x their final salary saved by retirement — but your personal number depends on your spending, Social Security income, retirement age, and where you live. Use the 25x rule on your expected annual expenses (minus Social Security) as your target. Run the numbers now, not at 64. Every year of additional saving and compounding dramatically changes the outcome.
For informational and educational purposes only. Projections use estimated figures. Consult a certified financial planner for personalized retirement planning.