Retirement Calculator 2026: How Much Do You Need to Retire?

How Much Money Do You Need to Retire?

Most retirement planners recommend saving 10 times your final pre-retirement salary by age 67. That target comes from Fidelity's widely cited savings framework, which serves as the industry-standard benchmark for retirement readiness in the United States (Fidelity).

The number sounds intimidating, but it works out mathematically. If you retire with 10× your income invested and follow the 4% rule, you can safely withdraw roughly 40% of your pre-retirement income each year without running out of money — and Social Security typically covers another 30–40%. Together, that replaces about 70–80% of your working income, which most experts consider the sweet spot for maintaining your current lifestyle in retirement (NerdWallet).

Your personal number depends on three variables: your desired lifestyle, your retirement age, and your life expectancy. Retiring at 55 requires a much larger nest egg than retiring at 70 because your savings must fund a longer non-working period. A traveller who wants a paid-off home and $80,000 a year in spending will need vastly more than a homeowner content with $40,000 a year in a low cost-of-living state.

The 80% rule vs. the 25× rule

Two shortcuts dominate retirement math. The 80% income-replacement rule says you should aim to replace 80% of your pre-retirement income each year in retirement. The 25× rule (from the 4% withdrawal rate) says multiply your desired annual retirement spending by 25 to get your total savings target. If you want $60,000 a year in retirement spending, that's a $1.5 million portfolio.

The 4% Rule Explained

The 4% rule states you can withdraw 4% of your retirement savings in the first year, adjust that amount for inflation each year after, and reasonably expect your money to last 30 years. Financial adviser William Bengen developed the rule in 1994 using historical U.S. stock and bond data from 1926 to 1976. His research found no historical 30-year period in which a 4% withdrawal rate depleted a balanced portfolio (Investopedia).

The math is simple: divide 1 by 0.04 and you get 25. That's why financial independence advocates use "25× your annual expenses" as the finish-line number for retirement. A retiree who spends $50,000 per year needs $1.25 million; someone who spends $100,000 needs $2.5 million.

Modern advisers debate whether 4% is still safe. Some argue for a more conservative 3% to 3.5% in the current low-yield environment, while Bengen himself has since said 4.5% or even 5% may be feasible depending on market conditions and retirement length. If you plan to retire early — say, at 50 — you'll want to lean toward 3% because your money must last 40+ years, not 30.

Retirement Savings Benchmarks by Age

Fidelity's age-based benchmarks give you a quick check on whether you're saving enough for retirement. The numbers assume you save 15% of pre-tax income each year (including any employer 401(k) match), invest in a stock-weighted portfolio, and retire at age 67.

Median balances sourced from Kiplinger's 2026 analysis of Survey of Consumer Finances and Empower Personal Dashboard data (Kiplinger) (Empower). The average retirement balance across all age groups was $547,840 in early 2026.

If your balance is well below the median for your age, don't panic — but do act now. Compound growth is the single biggest lever in retirement math, and every year you wait roughly doubles the monthly savings required to hit the same target.

Am I Saving Enough for Retirement?

You are saving enough for retirement if you're contributing 15% of your pre-tax income each year and your current balance meets your age's Fidelity benchmark. If either box is unchecked, you have three levers to pull.

Lever 1 — Increase your savings rate. Boosting from 10% to 15% of income during your 30s roughly doubles your ending balance by 67. Automate a 1% increase every January until you hit 15%; most 401(k) plans offer this feature.

Lever 2 — Delay retirement. Working two extra years produces two effects: two more years of contributions and compound growth, plus two fewer years of drawdown. Retiring at 69 instead of 67 can increase your safe withdrawal amount by 15–20%.

Lever 3 — Reduce expected spending. Every $1,000 you can trim from annual retirement spending reduces your required nest egg by $25,000 (using the 25× rule). Downsizing a home, moving to a lower-tax state, or paying off the mortgage before retirement all move the needle.

Retirement Calculator by Age: What to Focus On

In your 20s

Start contributing to a 401(k) up to at least the employer match, then open a Roth IRA. Time is your single greatest advantage. A 25-year-old saving $300 per month at 7% real return will have roughly $720,000 by 67 — the same as a 40-year-old who saves $900 per month.

In your 30s

Target 15% of pre-tax income across all retirement accounts. If you have a mortgage and childcare costs, this is often the hardest decade to hit the number, but it's also when compound growth begins to accelerate meaningfully. Aim for 1× salary saved by 30 and 3× by 40.

In your 40s

Max out tax-advantaged accounts if possible. The 2026 401(k) limit is $24,500 and the IRA limit is $7,500 (IRS). This is also the decade to firm up your retirement lifestyle assumptions — travel plans, where you'll live, whether you'll work part-time.

In your 50s

You gain access to catch-up contributions starting at age 50: an extra $8,000 in a 401(k) and $1,100 in an IRA in 2026. If you're between 60 and 63, the SECURE Act 2.0 super catch-up allows an additional $11,250 in a 401(k). Use these liberally — they were designed for exactly this decade.

In your 60s

Shift toward a more conservative allocation, decide when to claim Social Security, and stress-test your retirement plan against a market downturn in the first two years of retirement (a phenomenon called "sequence of returns risk"). Delaying Social Security from 62 to 70 increases your monthly benefit by roughly 77%.

How Long Will My Retirement Savings Last?

At a 4% withdrawal rate with 3% inflation, a well-diversified retirement portfolio typically lasts 30–35 years. The calculator above uses a year-by-year drawdown model to show you the exact age your savings would run out based on your inputs.

Three factors drive longevity more than any other:

1. Withdrawal rate. Dropping from 5% to 4% roughly extends portfolio life from 20 years to 30+ years in historical simulations.
2. Post-retirement investment returns. Staying invested with a 50/50 stock–bond allocation historically outperforms shifting to all cash by a wide margin, even for retirees in their 70s.
3. Sequence of returns. A bear market in the first two years of retirement can shorten portfolio life by 5–10 years compared to the same market decline occurring in year 15.

Building a two-year cash cushion — sometimes called a "bond tent" — lets you avoid selling stocks during a downturn, dramatically improving the odds your money outlasts you.

Don't Forget Social Security

The average Social Security retirement benefit is $2,071 per month in 2026, and the maximum at full retirement age is $4,152 per month (SSA). For most middle-class retirees, Social Security replaces 30–40% of pre-retirement income — a substantial cushion that your personal savings only needs to supplement, not fully replace.

You can claim as early as 62 with a permanent reduction of about 30%, at full retirement age (67 for anyone born in 1960 or later) for 100% of your benefit, or delay to 70 to earn 8% per year in delayed retirement credits. Waiting from 67 to 70 boosts your monthly check by 24%, which pays off for anyone who lives past roughly age 82.

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