How much do I need to retire?
Two back-of-the-envelope methods that get you a realistic target in ten minutes.
Method 1: the 25x rule
Estimate your annual spending in retirement, subtract guaranteed income like Social Security or a pension, and multiply the remainder by 25. That's the portfolio the classic 4% withdrawal guideline is built on.
Example: $60,000 of spending, $24,000 of Social Security. You need $36,000 a year from savings, so 36,000 × 25 = $900,000.
Method 2: replacement rate
Many households need 70–85% of pre-retirement income, because commuting and retirement contributions stop but healthcare often rises.
What changes the number the most
- Whether your home is paid off.
- Healthcare before Medicare eligibility — a large gap if you retire early.
- Where you live; cost of living varies enormously between cities and countries.
- How long you keep working, which cuts the years to fund and adds contribution years.
Model it, don't guess
SpeakCents lets you compare retirement scenarios side by side — different ages, destinations, and income mixes — and shows whether an early-retirement cash bridge holds up before Social Security starts.
Ready to try it on your own money?
SpeakCents tracks spending by voice, keeps budgets honest, and models retirement scenarios side by side.
Get started free