How much do I need to save to retire at 65?

A common target is 25x your annual retirement expenses (the 4% rule). If you need $60,000/year in retirement, you need $1.5 million. If you need $80,000/year, you need $2 million. Social Security replaces 30-40% of pre-retirement income for most, reducing how much you need from savings.

How much should I have saved for retirement by age 40?

Common benchmarks suggest 3x your salary by 40. If you earn $85,000, aim for $255,000 saved. More aggressive targets (for early retirement): 5-6x salary by 40. Even if you're behind, catching up is possible with increased contributions and time.

How much do I need to save for retirement?

A common rule of thumb is to save 10 to 15 percent of your income throughout your working years. The amount you need depends on your target retirement age, desired lifestyle, expected Social Security benefits, and other income sources. A general target is 25 times your expected annual retirement expenses based on the 4% rule.

What is the average 401(k) balance by age?

According to Vanguard, the average 401(k) balance is approximately $134,000 for savers in their 50s and $167,000 for those in their 60s. These averages are pulled down by many workers with low balances. The median balances are significantly lower, highlighting that many Americans are behind on retirement savings.

Retirement Savings Calculator: How Much Do You Need to Retire? (2026)

The most important question in personal finance: do you have enough to retire? Here’s how to calculate your number.

How Much You Need to Retire

By Desired Annual Income (4% Rule)

Annual Retirement Income	Savings Needed (4% Rule)	Savings Needed (3.5% Rule)	Savings Needed (3% Rule)
$30,000	$750,000	$857,000	$1,000,000
$40,000	$1,000,000	$1,143,000	$1,333,000
$50,000	$1,250,000	$1,429,000	$1,667,000
$60,000	$1,500,000	$1,714,000	$2,000,000
$75,000	$1,875,000	$2,143,000	$2,500,000
$80,000	$2,000,000	$2,286,000	$2,667,000
$100,000	$2,500,000	$2,857,000	$3,333,000
$125,000	$3,125,000	$3,571,000	$4,167,000
$150,000	$3,750,000	$4,286,000	$5,000,000
$200,000	$5,000,000	$5,714,000	$6,667,000

4% rule = 25x expenses. 3.5% = 28.6x. 3% = 33.3x (most conservative). Social Security income reduces the amount needed from savings.

Pre-Retirement Income	Social Security (est.)	Income Gap	Savings Needed (4% Rule)
$50,000	$18,000/yr	$32,000	$800,000
$75,000	$24,000/yr	$51,000	$1,275,000
$100,000	$30,000/yr	$70,000	$1,750,000
$125,000	$34,000/yr	$91,000	$2,275,000
$150,000	$37,000/yr	$113,000	$2,825,000
$200,000	$40,000/yr	$160,000	$4,000,000

Assumes retirement spending = 80% of pre-retirement income. Social Security estimates based on full retirement age claiming.

Retirement Savings Benchmarks by Age

Fidelity’s Rule of Thumb: Multiples of Salary

Age	Savings Target	If Salary = $60K	If Salary = $85K	If Salary = $120K
25	0.5x salary	$30,000	$42,500	$60,000
30	1x salary	$60,000	$85,000	$120,000
35	2x salary	$120,000	$170,000	$240,000
40	3x salary	$180,000	$255,000	$360,000
45	4x salary	$240,000	$340,000	$480,000
50	6x salary	$360,000	$510,000	$720,000
55	7x salary	$420,000	$595,000	$840,000
60	8x salary	$480,000	$680,000	$960,000
67	10x salary	$600,000	$850,000	$1,200,000

Monthly Savings Needed to Reach $1 Million

Current Age	Years to 65	Current Savings	Monthly Needed (7% return)	Monthly Needed (10% return)
22	43	$0	$340	$155
25	40	$0	$415	$200
25	40	$25,000	$345	$140
30	35	$0	$620	$325
30	35	$50,000	$430	$155
35	30	$0	$920	$530
35	30	$100,000	$520	$150
40	25	$0	$1,400	$885
40	25	$150,000	$620	$150
45	20	$0	$2,200	$1,540
45	20	$200,000	$700	$230
50	15	$0	$3,700	$2,870
50	15	$300,000	$800	$320
55	10	$0	$7,200	$6,100
55	10	$500,000	$750	$470

Monthly Savings Needed to Reach $2 Million

Current Age	Years to 65	Current Savings	Monthly Needed (7% return)
25	40	$0	$830
25	40	$50,000	$690
30	35	$0	$1,240
30	35	$100,000	$860
35	30	$0	$1,840
35	30	$150,000	$900
40	25	$0	$2,800
40	25	$250,000	$1,060
45	20	$0	$4,400
45	20	$400,000	$1,030
50	15	$0	$7,400
50	15	$500,000	$2,160

Where to Save: Account Priority

Priority	Account	2026 Limit	Why This Order
1	401(k) to employer match	Match amount	Free 50-100% return
2	HSA (if eligible)	$4,300/$8,550	Triple tax advantage
3	Roth IRA	$7,000/$8,000 (50+)	Tax-free growth forever
4	401(k) to max	$23,500/$31,000 (50+)	Tax-deferred growth
5	Mega backdoor Roth (if available)	Up to $70,000 total	Tax-free growth
6	Taxable brokerage	No limit	Flexible, lower capital gains rates
7	I Bonds	$10,000/year	Inflation protected, safe

Retirement Spending Reality Check

What Retirees Actually Spend (Average by Category)

Category	Average Monthly	Annual
Housing (including property tax, insurance)	$1,573	$18,876
Healthcare (premiums, copays, prescriptions)	$720	$8,640
Transportation	$667	$8,004
Food (home + dining)	$612	$7,344
Insurance (non-health)	$344	$4,128
Utilities	$308	$3,696
Entertainment	$235	$2,820
Personal care & services	$112	$1,344
Clothing	$95	$1,140
Gifts/donations	$250	$3,000
Total average	$4,916	$58,992

Healthcare Costs in Retirement

Item	Annual Cost (est.)
Medicare Part B premiums (2026)	$2,200
Medicare Part D premiums	$400-$1,200
Medigap/supplement policy	$1,800-$4,800
Out-of-pocket costs	$2,000-$5,000
Dental/vision (not covered by Medicare)	$1,000-$3,000
Total healthcare cost	$7,400-$16,200
Lifetime healthcare cost (couple, Fidelity est.)	$315,000+

Are You on Track? Quick Assessment

Your Age	Your Savings	Status
30	Less than 0.5x salary	Behind — increase contributions now
30	0.5x-1x salary	On track — maintain current savings rate
30	More than 1x salary	Ahead — great position
40	Less than 1.5x salary	Behind — need to catch up significantly
40	1.5x-3x salary	On track — keep it up
40	More than 3x salary	Ahead — early retirement possible
50	Less than 3x salary	Behind — maximize catch-up contributions
50	3x-6x salary	On track — stay the course
50	More than 6x salary	Ahead — very comfortable retirement
60	Less than 5x salary	Behind — consider working longer or reducing expenses
60	5x-8x salary	On track — refine withdrawal strategy
60	More than 8x salary	Ahead — plan legacy and tax optimization

Catching Up If You’re Behind

Age	Strategy	Impact
30-40	Increase savings rate by 5%	Adds $300K-$500K by 65
40-50	Max 401(k) + Roth IRA	$30,500/year → $500K+ by 65
50+	Use catch-up contributions ($7,500 401(k) extra)	$175K+ additional by 65
60-63	Super catch-up ($11,250 extra in 401(k))	Significant boost in final years
Any age	Delay Social Security to 70	24-32% higher monthly benefit
Any age	Reduce expenses by $500/mo	Need $150K less in savings
Any age	Work 2 more years	2 more years of saving + 2 fewer years of withdrawals

Sources

For more on building a sustainable retirement paycheck, see the Retirement Income hub.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy