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    How Much Do I Need to Retire? Do I Have Enough?

    4 min read•Updated June 2026

    Educational content only. This article is for informational purposes and does not constitute personalized financial, tax, or investment advice. Consult a qualified professional for guidance specific to your situation.

    TL;DR

    • Fidelity's rule of thumb: Save 10x your income by age 67 (1x by 30, 3x by 40, 6x by 50, 8x by 60)
    • 4% rule: Multiply your desired annual retirement spending by 25 to estimate your target portfolio size
    • Best free tool: FIRECalc — tests your plan against every historical market period since 1871, not just averages

    Want a second opinion on whether you're on track for retirement? Book a free 15-min call and I can help you stress-test your numbers.

    I won't reinvent the wheel on this one. Let's look at the best resources available to help you determine if you're on track for retirement.

    Spending in Retirement

    Unsurprisingly, this is really hard to estimate, but Fidelity has guidance on this topic.

    Fidelity's Retirement Guidelines

    Fidelity's General Rule of Thumb:

    Fidelity recommends aiming to save at least 10x your income by age 67, with milestone targets along the way: 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67 .

    Will My Portfolio Cover My Expenses?

    FIRECalc does a phenomenal job. It relies on three inputs (anticipated annual spending in retirement, portfolio size, and expected years of retirement) and tests the likelihood your portfolio would've "made it to the end" by using historic data since 1871.

    Visit FIRECalc Calculator

    How FIRECalc works:

    FIRECalc uses historical market data rather than averages. By testing your retirement plan against every market period in history, it shows you how your strategy would have performed in good times and bad.

    Other Helpful Retirement Calculators

    Vanguard Retirement Nest Egg Calculator

    Simulates the chances of your retirement savings lasting through various market conditions.

    Visit Calculator

    T. Rowe Price Retirement Income Calculator

    Helps you determine how much you can withdraw monthly from your retirement savings.

    Visit Calculator

    The 4% Rule: A Simple Guideline

    The 4% rule is a common rule of thumb in retirement planning. It suggests that you can withdraw 4% of your portfolio in your first year of retirement, then adjust that amount for inflation each subsequent year, and have a high probability of not running out of money over a 30-year retirement.

    Example:

    If you have a $1 million portfolio, you could withdraw $40,000 in your first year of retirement.

    To determine how much you need to save: Multiply your desired annual retirement income by 25.
    For example: If you need $60,000 per year, aim for $1.5 million ($60,000 × 25).

    Note: The 4% rule has limitations and may not work for everyone, especially in periods of high inflation or market volatility.

    Want a second opinion on whether you're on track for retirement?

    I can help you stress-test your numbers — running your inputs through multiple tools and scenarios to give you real confidence in your plan. One-time consultation, no ongoing fees.

    Book a Free 15-Min Call