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A common rule of thumb is to have about 1x your salary saved by 30, 3x by 40, 6x by 50, and 10x by 67. Another way to size the goal: aim for roughly 25 times your expected annual spending. Both are starting points, not promises, and your real number depends on your spending, other income, and timeline.
“How much do I need to retire?” is the question behind every retirement account. There is no single answer, but there are two solid frameworks: salary-multiple benchmarks by age, and the expenses-based 25x method. This guide walks through both, with examples, so you can set a target and check your progress. For the accounts that get you there, see our retirement accounts hub.
- By-age benchmarks (widely cited from Fidelity): about 1x your salary saved by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67.
- The expenses method: multiply your expected annual retirement spending by about 25 (the inverse of the 4% rule).
- The two methods often disagree, because salary multiples assume your spending tracks your income; use whichever fits your situation, or both as a sanity check.
- Social Security reduces the number your portfolio must cover, so factor it in for retirement at the traditional age.
- Your savings rate and starting early matter far more than hitting a precise target; these are guideposts, not pass-or-fail lines.
What are the savings benchmarks by age?
One popular framework, commonly attributed to Fidelity, expresses your target as a multiple of your salary at each age. It assumes retirement around 67 and that your spending roughly tracks your income.
| Age | Target saved (x salary) | Example at $70,000 salary |
|---|---|---|
| 30 | 1x | $70,000 |
| 35 | 2x | $140,000 |
| 40 | 3x | $210,000 |
| 45 | 4x | $280,000 |
| 50 | 6x | $420,000 |
| 55 | 7x | $490,000 |
| 60 | 8x | $560,000 |
| 67 | 10x | $700,000 |
These are guideposts, not requirements. If you are behind, you are far from alone, and your savings rate from here matters more than the gap today.
How does the expenses-based method work?
The salary-multiple approach is quick, but it is tied to income rather than what you will actually spend. The expenses method fixes that: estimate your annual retirement spending, then multiply by about 25. That is the inverse of the 4% rule, which suggests a portfolio can support withdrawals of about 4% per year.
| Expected annual spending | Target (x25, 4% rule) | More conservative (x28.6, 3.5%) |
|---|---|---|
| $40,000 | $1,000,000 | $1,143,000 |
| $60,000 | $1,500,000 | $1,714,000 |
| $80,000 | $2,000,000 | $2,286,000 |
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Why do the two methods give different numbers?
Salary multiples assume your spending scales with your income, so a high earner who lives frugally will look “behind” on the multiple while being fine on the expenses method. The reverse is also true: someone whose lifestyle costs more than their income suggests may look on track by salary but short by expenses. When the two disagree, the expenses-based number is usually closer to the truth, because retirement is funded by what you spend, not what you earned.
How does Social Security change the number?
For retirement at the traditional age, Social Security covers part of your spending, so your portfolio does not have to fund all of it. If you expect $40,000 a year in spending and Social Security provides $20,000, your portfolio only needs to cover the other $20,000, which at 25x is about $500,000 rather than $1,000,000. Plan conservatively (many use about 75% of the projected benefit), and see how Social Security fits your plan. Early retirees, by contrast, must fund the years before Social Security starts entirely from savings.
What if you are behind?
- Raise your savings rate. It is the single most powerful lever, more than chasing returns. Even a few percentage points compounds over time.
- Capture the full employer match first, then work toward the 2026 contribution limits.
- Use catch-up contributions if you are 50+, including the larger super catch-up at ages 60 to 63.
- Lower your future spending number. Trimming planned expenses cuts your target dollar-for-dollar (every $1,000 less in spending is about $25,000 less you need saved).
Frequently Asked Questions
A widely cited benchmark suggests about 1x your salary by 30, 3x by 40, and 6x by 50, on the way to roughly 10x by 67. These are rules of thumb that assume retirement around 67 and spending that tracks income, so treat them as guideposts, not hard rules.
Estimate your expected annual spending in retirement and multiply by about 25 (the inverse of the 4% rule). For a longer or earlier retirement, multiply by about 28.6 (a 3.5% rate) for more cushion. Subtract expected Social Security or pension income, since those reduce what your portfolio must cover.
It depends on your spending. Under the 4% rule, $1 million supports about $40,000 a year before taxes, plus any Social Security. That is comfortable in some areas and tight in high-cost ones. The right question is not a fixed dollar figure but whether your portfolio plus other income covers your actual expenses.
The expenses method is usually more accurate, because retirement is funded by what you spend, not what you earned. Salary multiples are a fast gut check. Using both and comparing is a good sanity test, especially if your spending differs a lot from your income.
The 25x target covers the spending your portfolio must fund on its own. Social Security and pensions reduce that, so if benefits cover part of your expenses, your portfolio target shrinks accordingly. For early retirement before benefits begin, your savings must cover the gap years entirely.
The bottom line
Use the by-age multiples (about 1x salary at 30, up to 10x by 67) as a quick check, and the expenses method (roughly 25 times annual spending) as your real target. Adjust for Social Security and your timeline, and remember that your savings rate matters more than hitting any exact number.
- Want the withdrawal math? Read our 4% rule guide.
- Aiming to retire early? Read our FIRE movement guide.
- Just getting started? See the retirement accounts hub and the 2026 contribution limits.
A quick note: this article is for educational purposes only and is not financial advice. The benchmarks and projections are rules of thumb based on assumptions that will not match everyone, and past performance does not guarantee future results. Consider talking with a qualified financial advisor about your own plan.
