“How much is enough to retire?” It’s one of the most important questions in personal finance—and the answer depends on your lifestyle, location, and goals. In 2025, the cost of living continues to rise, but with smart planning, retiring comfortably in the U.S. is still very achievable.
Here’s how to calculate your number—and what it really takes to live well in retirement.
🧮 1. The 25x Rule (Quick Estimate)
A popular rule of thumb in the FIRE (Financial Independence, Retire Early) community:
👉 Annual expenses × 25 = Your retirement number
If you expect to spend $60,000/year in retirement:
- $60,000 Ă— 25 = $1.5 million
This assumes a 4% annual withdrawal rate (based on the “4% rule”).
💡 2. Factors That Affect How Much You’ll Need
🔹 Your Desired Lifestyle
Will you travel often? Eat out regularly? Own a second home? Or live simply with hobbies and a modest lifestyle?
🔹 Where You’ll Live
Big cities cost more. Retiring in rural areas or lower-cost states like Florida, Texas, or North Carolina can stretch your dollars further.
🔹 Health Care Costs
In the U.S., health care is a major retirement expense. Experts estimate $300,000+ over a lifetime for a retired couple.
🔹 Retirement Age
The earlier you retire, the more you’ll need saved, since you’ll be relying on your portfolio longer.
🧾 3. Sources of Retirement Income
Most people won’t rely 100% on their savings. Consider:
- Social Security (average monthly benefit in 2025: ~$1,900)
- 401(k) / IRA savings
- Pensions (if you’re lucky)
- Rental or passive income
- Side work or consulting in semi-retirement
💼 4. How to Know You’re On Track
By age 30 → 1x your annual salary saved
By 40 → 3x
By 50 → 6x
By 60 → 8–10x
By retirement (65–67) → 10–12x your final annual salary
These are rough benchmarks from Fidelity and other financial advisors.
đź“Š 5. Use a Retirement Calculator
To get a personalized number, plug your income, age, savings, and spending into tools like:
- NerdWallet Retirement Calculator
- Fidelity’s Retirement Score
- Empower’s (Personal Capital) Planning Tools
âś… Final Thoughts
There’s no “magic number” that fits everyone. The key is to know your target, track your progress, and stay consistent with your savings and investing habits.
Whether your goal is $500K or $2 million, the earlier you plan, the more confident—and comfortable—you’ll feel about your future.
Retirement isn’t an age. It’s a number. Start building yours today.