The number that actually matters
“How much do I need to retire?” has a cleaner answer than most people expect. Start with what you want to spend each year. Take away what Social Security or a pension will cover — that income directly reduces what your savings have to fund. Whatever is left is the gap your nest egg fills, and a nest egg of about 25× that gap can sustain it using the 4% rule.
This calculator shows that number in today’s money, so it’s easy to relate to, and cross-checks the simple 25× estimate against a more precise present-value calculation that accounts for your actual time horizon and returns. The two should land close together — that agreement is what gives you confidence in the figure.
Why Social Security changes everything
Counting Social Security is the difference between a scary number and an achievable one. Spending $60,000 a year sounds like it needs $1.5 million saved — but if Social Security covers $24,000, your portfolio only has to produce $36,000, dropping the target to roughly $900,000. Enter your expected monthly benefit above (the average US check is around $1,900) and watch the required nest egg fall.
Frequently asked questions
How much money do I need to retire?
A widely used rule of thumb is about 25× your annual spending — but only the portion your savings must cover after Social Security or a pension. If you want to spend $60,000 a year and Social Security provides $24,000, your portfolio only needs to fund the remaining $36,000, which is about $900,000 under the 25× rule. The calculator above shows your precise number in today’s money.
How much do I need to retire at 65?
It depends far more on your spending than your age. Net out Social Security from your target spending, multiply the remainder by about 25, and you have a solid estimate. For many households aiming to spend $50,000–$70,000 a year, the required nest egg lands somewhere between $500,000 and $1.2 million once Social Security is counted. Set your own numbers above for an exact figure.
Is $1 million enough to retire?
For a lot of people, yes. At a 4% withdrawal rate, $1 million provides about $40,000 a year before other income — and combined with Social Security that can comfortably support a moderate lifestyle. Whether it’s enough for you depends on your spending and how long you plan for. Enter your details to see whether $1 million covers your target.
What is the 25× rule?
The 25× rule says you need roughly 25 times your annual spending saved to retire — the inverse of the 4% safe withdrawal rate (1 ÷ 0.04 = 25). It’s a quick estimate, not a guarantee. This calculator pairs it with a more precise present-value method and lets you adjust the withdrawal rate and life expectancy to match how cautious you want to be.