Question 1

How much money do I need to retire?

Accepted Answer

A common rule of thumb is to save 25 times your expected annual spending in retirement (the 4% rule). For example, if you plan to spend $50,000 per year, you would need $1.25 million. However, the right number depends on your lifestyle, healthcare costs, Social Security benefits, and how long you expect to live.

Question 2

What is the 4% rule for retirement?

Accepted Answer

The 4% rule suggests you can withdraw 4% of your retirement savings in the first year, then adjust for inflation each year after, and your money should last at least 30 years. On a $1 million portfolio, that means $40,000 per year. This rule is based on historical stock and bond returns, though some financial planners now suggest a more conservative 3-3.5% withdrawal rate.

Question 3

How much should I save for retirement each month?

Accepted Answer

Financial advisors generally recommend saving 15-20% of your gross income for retirement, including any employer match. The exact amount depends on your age: starting at 25, saving 15% is usually sufficient; starting at 35, you may need 20-25%; starting at 45, you may need 30%+ to catch up. Use this calculator with your specific numbers to find your target.

Age	Target Savings (x Annual Salary)
30	1x your salary
35	2x your salary
40	3x your salary
45	4x your salary
50	6x your salary
55	7x your salary
60	8x your salary
67	10x your salary

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