Retirement · Financial guide

How much money do I need to retire?

Quick answer

Fidelity estimates $1.46M for the median retiree, based on the 4% withdrawal rule (withdraw 4% in year one, adjust for inflation).

$1.46MFidelity median estimate
4%Safe withdrawal rate
$6,442/yrAverage Medicare cost
$108,405/yrLong-term care cost

The full picture

Fidelity estimates $1.46M for the median retiree, based on the 4% withdrawal rule (withdraw 4% in year one, adjust for inflation). However, the actual amount depends heavily on: expected expenses, Social Security benefits, pension income, healthcare costs, and desired lifestyle. The formula: (Annual expenses minus guaranteed income) multiplied by 25.

If you need $60,000/year and Social Security provides $24,000, you need ($60K - $24K) x 25 = $900,000. Medicare starts at 65 but costs $6,442/person annually. 70% of people over 65 will need long-term care averaging $108,405/year..

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