Income
How Much Money Do I Need to Retire?
The short answer
There is no single magic number. The better question is: how much dependable income will you need each month, and how much savings does it take to produce that income for the rest of your life?
Start with income, not a lump sum
A “number” like $1 million feels concrete, but it doesn’t mean much on its own. What matters is whether your savings, Social Security, and any pension can reliably cover your monthly expenses — including the years when markets are down.
Three simple steps
- Estimate your monthly retirement expenses. Use our calculator to add up housing, food, healthcare, insurance, and the fun parts too.
- Add up your dependable income. Social Security (see your estimate at ssa.gov), any pension, and income tools designed to last a lifetime.
- Look at the gap. The difference is what your savings and investments need to cover — that gap is the real “number.”
Why this matters more than a rule of thumb
Rules like “save 25× your expenses” are useful starting points, but they don’t account for your taxes, your health, your spouse, or a market drop early in retirement. A plan built around your income needs is far more reassuring than a generic number.
Have questions about your own situation? Tracy is glad to talk it through with you — clearly and without pressure.