How Much to Retire: 25x Rule & Age Targets

Retirement planning starts with a clear target. Without a number, you risk saving too little or working longer than necessary.

The 25x Rule

Multiply your annual spending by 25 to get your target nest egg. This assumes a 4% withdrawal rate, which historically lasts 30 years. For $60,000 in spending, that's $1.5 million.

Retiring at 50

At 50, you need 35 times your annual spending because your money must last 40+ years. For $60,000 spending, that's $2.1 million. Withdrawal rate should be closer to 3%.

Retiring at 55

At 55, use a 30x multiple. For $60,000 spending, that's $1.8 million. A 3.3% withdrawal rate gives a safer margin for a 35-year retirement.

Retiring at 60

At 60, 27x is reasonable. For $60,000 spending, that's $1.62 million. A 3.7% withdrawal rate covers a 30-year horizon with high confidence.

The most common mistake

Most people underestimate retirement spending by 20-30%, forgetting healthcare and leisure costs. Track your actual expenses for 6 months before setting a target.

Where this sits in the life map

This question changes shape with age. Read the cell that matches you:

• 40-49 · Money
• 50-59 · Money
• 60+ · Money

Questions people also ask

What if I want to retire at 50?

You'll need about 35 times your annual spending. For $50,000 spending, that's $1.75 million. Use a 3% withdrawal rate to ensure your money lasts 40+ years.

Does the 4% rule still work?

Yes, for a 30-year retirement. But for early retirement (50-55), use 3-3.5% to be safe. Current low bond yields may require a slightly lower rate.

How do I calculate my retirement number?

Multiply your annual spending by 25 for a traditional retirement age. Adjust upward for earlier retirement: 30x at 55, 35x at 50. Include taxes and healthcare.