How Much Do I Need Saved to Retire at 65?
The Short Answer
Most financial advisors recommend 25x your annual expenses saved by 65. If you spend $50K/year, you need about $1.25 million.
The Detailed Breakdown
Based on the 4% safe withdrawal rate from the Trinity Study, requiring 25x annual expenses.
| Calculation | Value | Assumptions |
|---|---|---|
| Needed ($50K/yr Expenses) | $1,250,000 | 4% withdrawal rule, 25x expenses |
| Needed ($75K/yr Expenses) | $1,875,000 | 4% withdrawal rule, 25x expenses |
| Needed ($100K/yr Expenses) | $2,500,000 | 4% withdrawal rule, 25x expenses |
Key Assumptions
- 4% safe withdrawal rate (Trinity Study).
- 30-year retirement horizon (age 65 to 95).
- Portfolio of 60% stocks / 40% bonds.
- Social Security supplements but isn't included.
Adjust for Your Situation
Target 25x your annual expenses in savings by 65 for a comfortable retirement.
Use the Free CalculatorWhat Affects This Result
Healthcare Costs
Retirees spend $300K+ on healthcare over retirement.
Social Security
Average benefit is ~$1,900/mo, reducing needed savings by ~$570K.
Inflation
3% inflation means $50K/year requires $121K in 30 years.