The most widely used retirement formula is based on the 4% Safe Withdrawal Rate — the amount you can safely withdraw from a diversified portfolio each year without running out of money over 30 years.
These numbers assume your portfolio is invested in a diversified mix of stocks and bonds, and that you withdraw 4% in year one, then adjust for inflation each year after. This is based on the Trinity Study — a landmark piece of financial research showing this approach has historically sustained portfolios for 30+ years.
Enter your current savings, monthly contribution, expected return and retirement age — see exactly whether you're on track.
Open Retirement Calculator →| Annual Spending | Monthly Spending | FIRE Number (25x) | Years to Retire (saving $2K/mo at 7%) |
|---|---|---|---|
| $30,000 | $2,500 | $750,000 | 18 years |
| $40,000 | $3,333 | $1,000,000 | 22 years |
| $50,000 | $4,167 | $1,250,000 | 26 years |
| $60,000 | $5,000 | $1,500,000 | 29 years |
| $80,000 | $6,667 | $2,000,000 | 34 years |
| $100,000 | $8,333 | $2,500,000 | 39 years |
The 4% rule comes from the 1994 Trinity Study by three finance professors who analyzed historical market data from 1926 to 1976. They found that a portfolio of 50% stocks and 50% bonds could sustain 4% annual withdrawals (adjusted for inflation) for 30 years with a very high success rate — over 95% in most market scenarios.
The 4% rule was designed for 30-year retirements. If you retire at 40 and live to 90, you need 50 years of coverage. Many financial planners now recommend a 3–3.5% withdrawal rate for early retirees, which means a 28–33x multiplier instead of 25x.
Here's what Americans actually have saved vs what financial advisors recommend:
| Age | Average Saved (Fidelity 2026) | Recommended (1x salary) | Status |
|---|---|---|---|
| 30 | $45,000 | 1x salary (~$60K) | Behind |
| 35 | $87,000 | 2x salary (~$120K) | Behind |
| 40 | $148,000 | 3x salary (~$180K) | Behind |
| 45 | $254,000 | 4x salary (~$240K) | Close |
| 50 | $390,000 | 6x salary (~$360K) | Behind |
| 55 | $537,000 | 7x salary (~$420K) | Close |
| 60 | $700,000 | 8x salary (~$480K) | On track |
The average American is behind on retirement savings at nearly every age. The median (middle value) is significantly lower — around $87,000 for all working-age adults combined. This highlights why starting early and maximizing contributions matters so much.
Here's what you need to save monthly starting at different ages to reach $1 million by age 65 at a 7% annual return:
| Starting Age | Years to Invest | Monthly Savings Needed | Total Contributed |
|---|---|---|---|
| 25 | 40 years | $381/mo | $182,880 |
| 30 | 35 years | $555/mo | $232,980 |
| 35 | 30 years | $820/mo | $295,200 |
| 40 | 25 years | $1,239/mo | $371,700 |
| 45 | 20 years | $1,944/mo | $466,560 |
| 50 | 15 years | $3,154/mo | $567,720 |
Starting at 25 costs $381/month. Waiting until 45 costs $1,944/month — more than 5x as much — to reach the same goal. This is the single most powerful argument for starting retirement savings as early as possible.
| FIRE Type | Annual Spending | Portfolio Target | Lifestyle |
|---|---|---|---|
| Lean FIRE | $25,000–$40,000 | $625K–$1M | Frugal, minimal expenses, often rural |
| Regular FIRE | $40,000–$80,000 | $1M–$2M | Comfortable middle-class lifestyle |
| Fat FIRE | $100,000–$200,000 | $2.5M–$5M | Luxury retirement, travel, no compromises |
| Barista FIRE | $30,000–$50,000 | $500K–$800K | Part-time work covers some expenses |
| Coast FIRE | Any | Enough to compound | Stop contributing, let compound interest do the rest |
Coast FIRE means saving aggressively early until your portfolio is large enough to grow to your retirement number on its own — without any additional contributions. Someone who saves $150,000 by age 30 at 7% growth will have $1.14 million by 65 without saving another dollar. This lets you take lower-paying but more fulfilling work in your 30s and 40s.
| Account | 2026 Limit | Tax Benefit | Best For |
|---|---|---|---|
| 401k (Traditional) | $23,500/yr | Pre-tax contributions, tax-deferred growth | High earners reducing current tax bill |
| 401k (Roth) | $23,500/yr | After-tax contributions, tax-free growth | Those expecting higher taxes in retirement |
| IRA (Traditional) | $7,000/yr | May be tax-deductible, tax-deferred growth | Those without workplace 401k |
| Roth IRA | $7,000/yr | After-tax, completely tax-free in retirement | Young earners in low tax brackets |
| Catch-up (50+) | +$7,500 to 401k | Extra contribution allowed after age 50 | Late starters catching up |
The general order: First contribute enough to your 401k to get the full employer match (free money). Then max your Roth IRA ($7,000). Then go back and max the 401k ($23,500). Any additional savings go into taxable brokerage accounts.
Enter your age, current savings, monthly contribution and target — find out your projected retirement date and whether you'll hit your number.
Check My Retirement →It depends entirely on your annual spending in retirement. Use the 25x rule: multiply your expected annual expenses by 25. If you plan to spend $60,000/year, you need $1.5 million. If you'll have Social Security covering $20,000/year, you only need to fund the remaining $40,000 yourself — requiring $1 million in savings.
Yes, if your annual expenses are $40,000 or less. At the 4% rule, $1 million generates $40,000/year — $3,333/month. Combined with Social Security averaging $1,800/month, you could comfortably live on $5,133/month, which is above average US household spending. The key is keeping retirement expenses under control.
The average retirement income for Americans 65 and older is approximately $75,000/year from all sources (Social Security, pensions, retirement accounts, part-time work). The median is closer to $47,000. Social Security alone averages about $1,800–$2,000/month per person in 2026.
The 4% rule remains a solid starting point but some experts now recommend 3.5% given longer life expectancies and current market valuations. For a 30-year retirement starting at 65, 4% remains well-supported. For early retirees planning a 40–50 year retirement, a more conservative 3–3.5% withdrawal rate is safer, implying a 29–33x portfolio multiplier.
Every $1,000/month in Social Security benefits reduces your required portfolio by $300,000 (at the 4% rule, $12,000/year ÷ 0.04 = $300,000). The average Social Security benefit in 2026 is ~$1,900/month — worth $570,000 in portfolio equivalent. Factor this in when calculating your personal retirement number.