Plan your US retirement with the 4% rule, 25x savings target, and age benchmarks. Calculate how much you need at 65 | Calculator4U
Determine how much you need to save for retirement.
A retirement calculator estimates exactly how much money you need to save to retire comfortably — and whether you are currently on track. The foundation is the 25x rule: multiply your desired annual retirement spending by 25 to find your savings target. This is the inverse of the 4% safe withdrawal rate, which lets you draw down your portfolio for 30+ years with a 95% historical success rate (Trinity Study, 1998).
For US workers, the numbers are concrete. If you want to spend $60,000 per year in retirement, you need $1.5 million saved. If you want $80,000 per year, your target is $2 million. The average Social Security benefit of $1,907 per month ($22,884 per year as of 2026, SSA) reduces your required savings by approximately $570,000 — so a couple receiving two average SS benefits needs roughly $360,000 less in personal savings to hit the same spending goal.
Time is the most powerful variable. A 25-year-old investing $500 per month at 7% annual return reaches $1.32 million by 65. Starting the same plan at 45 yields only $230,000 — a 5.7x difference for just 2x the contributions. That gap is compound interest, and it is why Fidelity benchmarks 1x your salary saved by 30, 3x by 40, and 10–12x by 67.
The 2026 contribution limits: 401(k) at $23,500 ($31,000 if 50+), IRA and Roth IRA at $7,000 ($8,000 if 50+), SEP-IRA up to $70,000. Always capture your full employer 401(k) match first — it is an immediate 50–100% return on that dollar. Then max your Roth IRA for tax-free growth. Then add to your 401(k) beyond the match threshold.
To retire at 65, use the 4% rule: multiply your desired annual spending by 25. If you want $60,000/year in retirement, you need $1.5 million saved. For $80,000/year, target $2 million. This formula assumes a 30-year retirement with a balanced portfolio. Add $300,000+ for healthcare costs not covered by Medicare. If you plan to rely on Social Security (average benefit ~$1,900/month), you can reduce your savings target by approximately $570,000 ($22,800/year × 25). Example: For $60,000 spending with Social Security, you need about $930,000 in savings.
The 4% rule is a safe withdrawal rate guideline stating you can withdraw 4% of your retirement savings in year one, then adjust for inflation each year, with a high probability your money lasts 30+ years. Based on the Trinity Study of historical market returns, a $1 million portfolio allows $40,000 annual withdrawals. The rule works best with a 50-75% stock / 25-50% bond allocation. Recent research suggests 3.5% may be safer for early retirees or during low-return environments. The inverse is the '25x rule'—save 25 times your annual expenses for retirement.
Yes, $1 million can fund retirement depending on your spending. Using the 4% rule: $1M provides $40,000/year in withdrawals. Add Social Security (~$23,000/year average) for $63,000 total annual income. Spending scenarios: MODEST lifestyle ($40,000/year) = comfortable with $1M; MODERATE ($60,000/year) = need $1.5M or Social Security boost; COMFORTABLE ($80,000/year) = need $2M. Location matters: $1M stretches further in low-cost states (Oklahoma, Tennessee) vs. high-cost cities (NYC, San Francisco). Key factors: healthcare costs before 65, housing expenses, and inflation over 30+ years.
Fidelity's US benchmarks: 1x salary by 30, 2x by 35, 3x by 40, 4x by 45, 6x by 50, 7x by 55, 8x by 60, and 10–12x by 67. On a $75,000 salary: $225,000 by 40, $450,000 by 50, $750,000–$900,000 by 67. These assume retiring at 67 with Social Security covering about 40% of pre-retirement income. If you are behind, increase contributions by 1–2% of salary per year until you hit 15–20% total.
For 2026, the 401(k) contribution limit is $23,500 ($31,000 if you are 50 or older, including the $7,500 catch-up). The IRA and Roth IRA limit is $7,000 ($8,000 if 50+). SEP-IRA is the lesser of $70,000 or 25% of compensation. Combined with an employer match averaging 4.7% of salary (Vanguard 2024), a worker earning $75,000 can put away over $27,000 annually in tax-advantaged accounts.
Social Security reduces your personal savings target by approximately 25 times your annual benefit. The average US benefit in 2026 is $1,907 per month ($22,884 per year). At 25x, that offsets roughly $572,000 in required savings. Delaying Social Security from 62 to 70 increases your monthly benefit by up to 76% — from $1,334 to $2,350 on an average benefit — potentially reducing your required savings by an additional $150,000–$200,000. Check your personal estimate at SSA.gov.
Fidelity's 2024 estimate is $315,000 for a 65-year-old US couple in retirement healthcare costs, not including long-term care. That is roughly $157,500 per person. Medicare covers hospitalisation (Part A) and doctor visits (Part B) but not dental, vision, hearing, or most long-term care. Budget an additional $5,000–$7,000 per year for Medicare premiums, deductibles, and out-of-pocket costs. Healthcare inflation historically runs 5–7% per year — higher than general CPI — making it the most underestimated retirement expense for US retirees.