Savings Goals for Retirement Planning

Retirement savings goals depend on desired annual income, expected Social Security or pension, and years until retirement. Start with the end number and work backward.

The 25× rule

Annual retirement spending × 25 = nest egg target (based on 4% withdrawal rate). Need $60,000/year? Target $1.5 million.

Monthly savings by age

Starting at 25: save 15% of income. Starting at 35: 20%. Starting at 45: 30%. Later starts require higher savings rates due to less compounding time.

Tax-advantaged accounts first

Maximize 401(k) employer match before taxable brokerage. Traditional vs Roth depends on current vs expected retirement tax bracket.

Adjust for inflation

$1 million in 30 years buys less than today. Use real (inflation-adjusted) return estimates of 3–5% for long-term planning.

When you are ready to calculate, use our free Savings Goal Calculator — it runs privately in your browser and shows the formula used.

Frequently asked questions