How Much Should I Save for Retirement?
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There's no universal dollar figure that's right for everyone — how much you should save depends on your income, when you plan to retire, what your expenses will look like, and what other income (like Social Security or a pension) you expect to have. That said, a few common approaches can help you get oriented.
Common rules of thumb
- Savings-rate rules of thumb. Some financial educators suggest aiming to save a meaningful, consistent percentage of your income throughout your working years — the exact percentage recommended varies by source and depends heavily on how early you start and how long you plan to work.
- Savings-milestone rules of thumb. Some tools suggest having saved a multiple of your annual salary by certain ages, as a rough checkpoint rather than a precise target.
These are starting points, not guarantees — they're general heuristics from personal finance educators and institutions, not a substitute for a plan built around your own numbers.
What actually determines your number
- When you want to retire. Retiring earlier means more years of savings needing to last, and fewer years to contribute.
- Your expected expenses in retirement. Housing situation, healthcare, and lifestyle all matter more than any generic rule of thumb.
- Other expected income. Social Security, a pension, or rental income all reduce how much you need from personal savings alone.
- Your expected investment returns. A more conservative assumed return requires higher contributions to reach the same target balance.
Work out your own number
Rather than relying on a generic rule of thumb, the retirement calculator on this site lets you plug in your own current savings, contribution amount, timeline, and expected return to see a personalized projection — and adjust the inputs to see how changes in your savings rate affect the outcome.
This article is for general education only and is not individualized financial advice. Consult a qualified financial professional to build a plan specific to your situation.