How Much Do I Need to Retire? The Math, by Spending Level

The formula

Savings needed = (yearly spending − Social Security, pensions and other income) ÷ withdrawal rate

The withdrawal rate depends mostly on how long the money must last. Morningstar's latest starting rates are 3.9% for 30 years, 3.5% for 35 years, 3.3% for 40 years and 2.9% for 50 years. Retiring at 65 and planning to 95 is a 30-year retirement; retiring at 50 is closer to 40.

Table by spending

Savings needed on the day you retire, for the part of your spending the portfolio pays, in today's dollars:

Paid by savings a year	4% rule	3.9% (30 years)	3.3% (40 years)	2.9% (50 years)
$20,000	$500,000	$512,821	$606,061	$689,655
$30,000	$750,000	$769,231	$909,091	$1,034,483
$40,000	$1,000,000	$1,025,641	$1,212,121	$1,379,310
$50,000	$1,250,000	$1,282,051	$1,515,152	$1,724,138
$60,000	$1,500,000	$1,538,462	$1,818,182	$2,068,966
$80,000	$2,000,000	$2,051,282	$2,424,242	$2,758,621
$100,000	$2,500,000	$2,564,103	$3,030,303	$3,448,276

Three worked examples

Retire at 67 on $55,000, with $25,000 of Social Security. Savings pay $30,000: $30,000 ÷ 3.9% = $769,231.
Retire at 60 on $70,000, Social Security of $30,000 from 67. Savings pay $70,000 for 7 years and $40,000 after that. At a steady 3% after inflation, $1,500,000 lasts 100+ years.
Retire at 45 on $50,000, no other income until 62. At 2.9%, $1,724,138.

What to count as spending

Use what you expect to spend in retirement, not your current income: housing, food, transport, travel, taxes on withdrawals and health insurance until Medicare at 65. A paid-off mortgage lowers it; supporting family raises it. Every $1,000 a year of spending adds $25,641 to the savings needed at 3.9%.

These figures are illustrations worked out from stated assumptions, not forecasts. Real returns vary from year to year, and taxes, fees and the order of good and bad years change the outcome. See the disclaimer.

Questions people ask

How much do I need to retire at 65?

The part of your spending that Social Security does not cover, divided by about 3.9% for a 30-year retirement. If savings must pay $30,000 a year, that is $769,231; $50,000 a year needs $1,282,051. Retiring at 65 has the full table.

How much do I need to retire comfortably?

Enough for the spending you call comfortable. Write down a yearly budget, subtract the income you will have, and divide the rest by the withdrawal rate: $80,000 of spending with $30,000 of Social Security needs $1,282,051 at 3.9%.

How much do I need to retire early?

More, because the money must last longer and Social Security starts later. For $50,000 a year from 45 to 95, Morningstar's 50-year rate of 2.9% gives $1,724,138. See retire at 40 and retire at 45.

Calculate yours

The FIRE calculator works out the number and the age you reach it. The Social Security break-even calculator helps you choose the age the other income starts.

Sources

Amy C. Arnott, "How Much Can You Safely Withdraw If You Retire Early?", Morningstar, September 15, 2026 (data as of September 30, 2025).
Social Security Administration, Retirement benefits if you were born in 1960 or later.
William P. Bengen, "Determining Withdrawal Rates Using Historical Data", Journal of Financial Planning, October 1994.

Keep reading

What is FIRE? Financial independence in numbers
What financial independence means, the five versions and how much each one costs.
The 4% rule explained
Where the 4% rule comes from, how long a portfolio lasts at each rate and what the rule leaves out.
How to calculate your FIRE number
The formula, three worked examples, a table by spending level and how other income lowers it.
Average retirement savings by age in 2025
Median and average 401(k) and IRA balances by age from the Fed's 2025 survey, and the share of families with any account.

Last reviewed by Asier Fernández, editor, on October 18, 2026. Educational information only, not financial advice. How we calculate

How much do I need to retire?