How Much Do I Need to Retire?
The honest answer is that it depends on what you spend, not what you earn — and on how much of that spending Social Security already covers. Enter five numbers and see your figure.
Nothing is stored and no signup is needed to see your result. Estimates only — not investment or tax advice.
Hans Goldstein
Founder & Executive Director · Retirement Literacy Foundation, a 501(c)(3) non-profit
If the gap above is larger than you hoped, the number itself is rarely the useful part — what moves it is guaranteed income, spending, and the year you start. Put your name below and I’ll send the one-page checklist of the levers, ranked by how much each one actually shifts the figure.
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Common questions
How much do I need to retire?
Take your annual spending, subtract the guaranteed income you will receive from Social Security and any pension, then divide the gap by your withdrawal rate. At a 4% rate, a $40,000 gap implies about $1,000,000. This is why two people with identical salaries can need very different amounts.
Is the 4% rule still valid?
It remains a reasonable starting point, not a guarantee. It came from historical US market data and assumes a roughly 30-year retirement with a balanced portfolio. Many planners now use 3.5% to be conservative, or vary the rate by year. Try both here and see how much the answer moves.
Do I count Social Security?
Yes — and it changes the number more than anything else. Social Security is inflation-adjusted lifetime income, so every $1,000 a year it provides is roughly $25,000 less you need saved at a 4% rate.
Is $1 million enough to retire?
At a 4% withdrawal rate, $1,000,000 supports about $40,000 a year from savings. Add a typical Social Security benefit and total income lands near $70,000 to $80,000 for a couple. Whether that is enough depends entirely on what you spend.
What if I retire before 62?
You have a gap to bridge before Social Security starts, so those years draw more heavily on savings. That early sequence matters more than the average return, which is why retiring early usually needs a larger cushion than this simple multiple suggests.
Does this account for taxes?
Not directly. Enter your spending as an after-tax figure, or add your expected tax bill to spending. Withdrawals from a traditional IRA or 401(k) are taxable as ordinary income.
Related free tools
- Retirement Calculator: will your money last?
- Social Security Calculator: how much will you get?
- 401(k) Calculator: what your balance grows to
- How much income does $1 million generate?
The Retirement Literacy Foundation is a 501(c)(3) non-profit. This calculator is general financial education, not individualized investment, tax, or insurance advice. Projections assume a steady rate of return; real markets vary year to year. Consider speaking with a licensed professional before making decisions.