How much money do I need to retire?
There is no universal retirement number. Estimate annual retirement spending, subtract reliable income such as Social Security and pensions, then size savings for the remaining gap. For example, a $36,000 annual gap divided by an assumed 4% first-year withdrawal rate equals $900,000. The 4% rate is a planning assumption—not a guarantee—and your target should reflect taxes, healthcare, longevity, investment risk, and flexibility.
Build the target from your income gap
Start with annual spending in retirement, including taxes and irregular costs. Subtract income you reasonably expect from Social Security, pensions, annuities, or work. Then divide the remaining annual gap by a withdrawal-rate assumption. A $60,000 spending estimate minus $24,000 of reliable income leaves a $36,000 gap; $36,000 divided by 4% equals $900,000.
This is an illustration, not a safe or guaranteed balance. A lower withdrawal assumption, a longer retirement, less spending flexibility, or a portfolio with more risk may require a larger starting amount. Stress-test poor market returns early in retirement, inflation, a longer-than-expected lifespan, taxes, and large one-time expenses.
Use personalized benefit and healthcare inputs
Social Security benefits are based on your earnings record and the age when you claim. The Social Security Administration lets you compare personalized estimates for claiming ages from 62 through 70; use that estimate instead of a national average.
Healthcare is more than one average. For 2026, the standard Medicare Part B premium is $202.90 per month, but higher-income enrollees pay more. That figure is not total healthcare spending: Part A cost sharing, the Part B deductible, Part D or other coverage, dental and vision care, and long-term services may add costs. Estimate each item for your household.
Model this decision with your actual numbers
The PivotReset Decision Support Engine shows you the 12-month financial projection for each path.
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Sources and review
Social Security Administration, personalized benefit estimates · Social Security Administration, planning and claiming ages · Centers for Medicare & Medicaid Services, 2026 Parts A and B costs
Reviewed July 23, 2026. Medicare amounts and retirement rules can change; recalculate with current inputs before acting.