How Much Should You Save for Retirement?
"Am I saving enough for retirement?" is one of the most common — and most anxiety-inducing — money questions. The good news: a few simple rules of thumb can turn a vague worry into a concrete number you can act on.
Start with the 25x rule
The most useful starting point is the 25x rule: aim to save about 25 times the annual spending you'll cover from your own savings. It's the flip side of the 4% withdrawal rule (more on that below).
Want $60,000/year from your portfolio? Target roughly $1.5 million (60,000 × 25) — minus whatever Social Security and any pension will provide.
Social Security matters a lot here. If it covers, say, $24,000/year of your spending, your savings only need to produce $36,000/year — dropping your target to about $900,000. Check your estimated benefit at ssa.gov and subtract it before you multiply.
Put in your age, savings, and goal: the retirement calculator tells you whether you're on track and what monthly contribution closes the gap.
Savings milestones by age
If a single big number feels abstract, milestones tied to your salary are easier to track. A widely used set of benchmarks:
| By age | Saved (× your salary) |
|---|---|
| 30 | 1× |
| 40 | 3× |
| 50 | 6× |
| 60 | 8× |
| 67 | 10× |
These assume you save around 15% of income throughout your career (including any employer match). They're guidelines, not guarantees — but they're a quick gut check.
The 4% rule for spending it down
Once you retire, how much can you safely withdraw? The classic answer is the 4% rule: withdraw 4% of your portfolio in year one, adjust that dollar amount for inflation each year, and historically the money lasted at least 30 years across almost every market period. Some researchers now suggest 3.5%–4% for longer retirements. Test your own numbers with the retirement withdrawal calculator.
If you're behind, pull these levers
Most people feel behind at some point. In order of impact:
- Contribution rate. The one variable fully in your control. Always capture the full employer match first — it's an instant 50–100% return — then push toward 15%+.
- Retirement age. Each extra year working adds savings, adds growth, and raises your Social Security benefit — three tailwinds at once.
- Tax-advantaged accounts. Use a Roth IRA or 401(k) so more of your growth compounds untaxed.
- Time. Even starting late, compounding still works — it just needs you to begin now rather than next year.
The number that matters isn't perfection — it's momentum. Increase your savings rate by even 1% of income today, and let the milestones guide you from there.
Educational information, not financial advice. Retirement planning depends on your full circumstances; consider consulting a professional. Last reviewed: July 2026.