Thinking about retirement? Whether it feels far off or just around the corner, it’s a good idea to know how much you’ll need to live comfortably.
In this guide, we’ll break it down by age and help you figure out how much to save — without getting into complicated math or boring jargon.
What Does “Comfortable Retirement” Mean?
A comfortable retirement means having enough money to enjoy life without worrying about bills. It covers your needs like food, housing, and healthcare — and gives you extra for things like travel or hobbies.
It doesn’t mean being rich. It means being financially free enough to live the way you want.
The 25x Rule: A Quick Way to Estimate
One simple rule says you should save 25 times the amount you want to spend each year in retirement.
If you plan to spend $40,000 a year, you’d want about $1 million saved. This is based on the idea that you can safely take out about 4% of your savings each year without running out.
How Much Should You Have Saved by Age?
Here’s a general guide. These numbers are based on your yearly income, not fixed amounts. That way, it works whether you make $30k or $130k.
- By age 30 – Aim to have 1x your annual salary saved
- By age 40 – Around 3x your salary
- By age 50 – About 6x your salary
- By age 60 – Around 8x
- By retirement age (around 67) – Aim for 10x your salary
If you’re not there yet — that’s okay. These are just helpful goals. You can always catch up.
Where Should You Save Your Retirement Money?
There are a few smart places to save for retirement. Each has different benefits, but the goal is the same: grow your money over time.
401(k): Offered by many jobs. You put in money before taxes, and your company may match some of it. That’s free money.
IRA (Individual Retirement Account): You open this on your own. A Roth IRA lets your money grow tax-free.
Investment accounts: These aren’t just for the rich. You can start with small amounts and grow over time.
Can You Count on Social Security?
Social Security can help, but it likely won’t cover everything. It may give you around 30–40% of what you earned during your working years.
That’s why saving on your own is important — so you’re not relying only on government support.
How to Know If You’re on Track
To check if you’re on the right path, look at how much you’ve saved and compare it to the age-based goals above.
You can also use free online retirement calculators. Just enter your age, income, and how much you’re saving — and it’ll show you where you stand.
Try to review your savings once or twice a year and make small changes if needed.
Simple Tips to Save More
- Start as early as you can — the sooner you start, the less you need to save each month
- Save a little from every paycheck — even 5–10% helps
- Increase savings when you get a raise
- Spend less than you earn — and put the rest to work for your future
You don’t need to be perfect. Small, steady steps add up over time.
Final Thoughts
Retirement isn’t something to fear — it’s something to plan for. You don’t need a million dollars tomorrow, but starting now gives you more options later.
Focus on saving a little more each year, and your future self will thank you.