How much money will I need in retirement?
Follow these two steps to calculate how much money you’ll need for retirement:
- Decide what you want your annual retirement income to be
- Divide that number by 4%
This number tells you how much you need in savings to comfortably withdraw 4% a year.
Use the chart below to quickly spot how much you need to save based on various incomes:
If you want your annual income to be this much in retirement… | … then you need to save this much*… |
$40,000 | $1 million |
$50,000 | $1.25 million |
$60,000 | $1.5 million |
$70,000 | $1.75 million |
$80,000 | $2 million |
*Based on a 4% withdrawal rate