The quick math: the 25x rule

The most widely used shortcut comes from the 4% rule: in the first year of retirement, withdraw about 4% of your savings, then raise that amount with inflation each year. Research on past markets found that this pace gave savings a good chance of lasting about 30 years. Turned around, it tells you how much to save:

The key is that you only need savings to cover the gap Social Security and any pension leave. That is why two people with the same spending can need very different amounts.

How much you need for each income level

Here is the savings target for different amounts of yearly income from savings, using the 4% rule and a more cautious 3.5% rate, which suits early retirees or anyone who wants a larger safety margin:

All amounts are in today's dollars. If you retire in 30 years, the dollar amounts at that time will be higher because of inflation, but they will buy about the same as these figures buy today.

Find your own number in three steps

1. Estimate your yearly spending in retirement. A common rule of thumb is 70% to 80% of your pre-retirement pay, since you will no longer save for retirement, pay payroll taxes or commute. A better estimate starts with what you spend now, minus costs that will end, such as a mortgage you will have paid off.
2. Subtract guaranteed income. After the 2.8% cost-of-living increase for 2026, the average retired worker receives about $2,064 a month from Social Security, or roughly $24,800 a year. Your own estimate is in your my Social Security account at ssa.gov. Add any pension.
3. Multiply the gap by 25. Use 28 to 33 instead if you plan to retire before 60, want extra safety or expect a long retirement.

Fidelity's research takes a similar approach. It suggests your savings should replace at least 45% of your pre-retirement income if you retire at 67, with Social Security covering much of the rest. That rises to about 50% if you retire at 65 and falls to about 40% at 70.

How long will your savings last?

The withdrawal rate you choose decides how long the money lasts. Here is how long $1,000,000 lasts at different starting withdrawal rates, with withdrawals rising 2.5% a year for inflation and savings earning a steady 5% a year:

Real returns are not steady. A market drop early in retirement, when you are withdrawing from a smaller balance, can shorten these timelines. This is called sequence-of-returns risk and is the main reason planners treat 4% as a ceiling for a 30-year retirement rather than a target. Being flexible, such as spending a little less after a bad year, makes savings last noticeably longer.

Your retirement age changes everything

Take a 35-year-old with $40,000 saved who puts away $500 a month, increasing it 2% a year. Savings earn 7% before retirement and 5% after, inflation is 2.5%, and they want $60,000 a year in today's dollars until age 90. Their Social Security is $22,000 a year at 67, reduced or increased for claiming earlier or later:

Balances here are in future dollars. Retiring at 70 instead of 62 works three ways at once: eight more years of saving and growth, a Social Security check about 77% larger, and eight fewer years to fund. The same person goes from running out of money at 72 to having money left at 90. Social Security figures use the standard reductions and increases for someone whose full retirement age is 67.

Retirement savings benchmarks by age

If you are wondering whether you are on track, Fidelity's savings guideline gives a target as a multiple of your salary:

1. By age 301× salary
2. By age 403× salary
3. By age 506× salary
4. By age 608× salary
5. By age 6710× salary

These assume you save about 15% of pay each year, including any employer match. Our guide on how much to put in your 401(k) shows what different contribution rates add up to.

Costs people often forget

• Health care. Fidelity estimates a single person retiring at 65 in 2026 may need about $185,500 for health care in retirement, on top of what Medicare covers. If you retire before 65, you also need coverage until Medicare starts.
• Taxes. Withdrawals from traditional 401(k)s and IRAs are taxed as income, so $40,000 withdrawn may leave less than $40,000 to spend. Roth withdrawals that meet the rules are tax-free.
• Inflation. At 2.5% a year, prices roughly double in 28 years. Plan for spending that rises over time.
• A long life. Many people now live into their 90s. Planning to age 90 or 95 is safer than planning to average life expectancy.
• Debt. Entering retirement with a mortgage or credit card balance raises how much you need each year. The debt payoff calculator can help you plan to clear it first.

Frequently asked questions

Sources and how we calculated

Savings targets use the 4% and 3.5% withdrawal rates. Projections assume monthly contributions and withdrawals, returns converted to equivalent monthly rates and withdrawals rising with inflation, and ignore taxes and fees. Social Security figures come from the SSA's 2026 cost-of-living adjustment information; the early and delayed claiming adjustments follow the SSA's rules for a full retirement age of 67. Savings multiples and income replacement targets come from Fidelity's retirement guidelines, and the health care estimate from Fidelity's 2026 Retiree Health Care Cost Estimate, as reported by CNBC.