How Much Do I Need to Retire at 65? Complete Guide with Calculator
Find out exactly how much money you need to retire at 65. Use our free calculator and learn about the 4% rule, Social Security, and retirement savings benchmarks.
Calculate Your Retirement Savings
Use our free calculator to see your personalized projection
How Much Money Do You Really Need to Retire at 65?
The short answer: Most financial experts recommend having 10-12 times your annual salary saved by age 65. If you earn $75,000 per year, that means you'd want between $750,000 and $900,000 saved.
But that's just a rule of thumb. The real answer depends on YOUR specific situation—your expenses, lifestyle goals, Social Security benefits, and how long you expect to live in retirement.
Let's break it down step by step.
The 4% Rule: A Simple Starting Point
The most widely used retirement planning guideline is the 4% rule. It suggests you can safely withdraw 4% of your retirement savings each year without running out of money over a 30-year retirement.
Here's how it works:
| Retirement Savings | Annual Withdrawal (4%) | Monthly Income |
|---|---|---|
| $500,000 | $20,000 | $1,667 |
| $750,000 | $30,000 | $2,500 |
| $1,000,000 | $40,000 | $3,333 |
| $1,500,000 | $60,000 | $5,000 |
| $2,000,000 | $80,000 | $6,667 |
To calculate your target: Multiply your desired annual retirement income by 25.
For example, if you want $50,000 per year in retirement: $50,000 × 25 = $1,250,000 needed
Don't Forget Social Security
Most Americans will receive Social Security benefits starting at age 65-67. The average benefit in 2026 is approximately $1,900 per month ($22,800 per year).
This can significantly reduce how much you need to save:
- **Without Social Security:** Need $50,000/year = $1,250,000 saved
- **With Social Security ($22,800/year):** Need $27,200/year from savings = $680,000 saved
That's a difference of $570,000!
Retirement Savings Benchmarks by Age
If you're not yet 65, here's how much you should have saved at each age according to Fidelity:
| Age | Savings Goal (x Salary) | Example ($75k salary) |
|---|---|---|
| 30 | 1x salary | $75,000 |
| 40 | 3x salary | $225,000 |
| 50 | 6x salary | $450,000 |
| 60 | 8x salary | $600,000 |
| 65 | 10-12x salary | $750,000-$900,000 |
Factors That Affect How Much You Need
1. Your Expected Expenses - Will your mortgage be paid off? - Do you plan to travel extensively? - What about healthcare costs?
2. Where You'll Live - Cost of living varies dramatically by location - Moving to a lower-cost area can stretch your savings
3. Healthcare Costs - Medicare starts at 65, but doesn't cover everything - Average couple needs ~$315,000 for healthcare in retirement
4. Life Expectancy - A 65-year-old today can expect to live to 85-87 - Plan for at least 25-30 years of retirement
Calculate Your Personal Number
Everyone's situation is different. Use our free retirement calculator above to get a personalized estimate based on: - Your current age and savings - Monthly contribution amount - Expected investment returns - Your target retirement age
The calculator will show you exactly how much you'll have at 65 and what your monthly retirement income could be.
How to Catch Up If You're Behind
If you're behind on your retirement savings, don't panic. Here are strategies to catch up:
1. Maximize Your 401(k) In 2026, you can contribute up to $24,500 to your 401(k). If you're 50 or older, you can add another $7,500 in catch-up contributions.
2. Open an IRA You can contribute an additional $7,000 per year to an IRA ($8,000 if 50+).
3. Delay Retirement Working just 2-3 extra years can significantly boost your savings and Social Security benefits.
4. Reduce Expenses Now Every dollar you save now could be worth $3-4 at retirement thanks to compound interest.
Frequently Asked Questions
Can I retire at 65 with $500,000? Yes, but it depends on your expenses. With Social Security, $500,000 could provide around $3,500-4,000 per month. Use our calculator to see if it's enough for your lifestyle.
Is $1 million enough to retire at 65? For most people, yes. $1 million can provide about $40,000 per year using the 4% rule, plus Social Security benefits.
What if I have a pension? A pension reduces how much you need to save. Calculate your pension income and subtract it from your target retirement income to determine your savings goal.
Should I pay off my mortgage before retiring? Generally yes—eliminating your mortgage payment significantly reduces your monthly expenses in retirement.
The Bottom Line
To retire comfortably at 65, aim for 10-12 times your annual salary in retirement savings. But use our calculator to get a more accurate number based on your specific situation.
The most important thing? Start saving now. Even small contributions add up thanks to compound interest. A 35-year-old who saves $500/month could have over $700,000 by age 65 (assuming 7% returns).
Use the calculator above to see your projected retirement savings and start planning today.
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Your Information
That's $6,000 per year
Historical S&P 500 average: ~10% (before inflation)
Historical average: ~3% per year
Your Estimated Retirement Savings
In 35 years when you turn 65
* Based on 22% tax bracket for traditional 401(k)/IRA contributions
The 4% rule is a common guideline, but it balances income with longevity.
Projected Growth Over Time
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