How Much Do You Need to Retire at 65?
Retiring at 65 is one of the most common goals, but the amount you need depends on your lifestyle, income sources, and how long you expect retirement to last.
How much do most people need?
A common guideline is to replace about 70 to 80 percent of your pre-retirement income. For many people, this means needing between $1 million and $2 million in retirement savings.
How Social Security affects your needs
By age 65, many retirees are eligible for Social Security benefits. This can significantly reduce how much you need to withdraw from your savings each year.
Using the 4 percent rule
The 4 percent rule suggests withdrawing about 4 percent of your savings annually. That means: $1 million provides about $40,000 per year, and $2 million provides about $80,000 per year before taxes.
Factors that change your number
Your retirement number depends on your spending, healthcare costs, lifestyle, and whether you carry debt into retirement. Living in a higher cost area will require more savings, while a simpler lifestyle may require less.
Why 65 is a key milestone
Age 65 is important because it is when Medicare eligibility begins. This can help reduce healthcare costs compared to retiring earlier.
Use the calculators
Use the tools on this site to estimate how long your savings will last and how much you may need. Testing different scenarios will help you build a more confident retirement plan.