Retirement Number Calculator
Answer 4 quick steps — we calculate your personalized retirement target.
How Much Do You Need to Retire in 2026?
The most common rule of thumb is the 25x rule — multiply your expected annual expenses in retirement by 25. This is based on the "4% safe withdrawal rate," which research suggests allows your portfolio to last 30+ years without running out. If you plan to spend $60,000 per year in retirement, you need approximately $1.5 million saved.
But that simplified formula misses a lot. Your actual target depends on when you retire, where you live, your health, Social Security income, whether you have a pension, and how much you plan to spend. Our calculator factors in all of these variables.
2026 Retirement Savings Benchmarks by Age
| Age | Recommended Savings | Median Actual (Fidelity 2025) | Status |
|---|---|---|---|
| 30 | 1x salary (~$55K) | $11,800 | Most behind |
| 35 | 2x salary (~$130K) | $37,200 | Catch-up needed |
| 40 | 3x salary (~$210K) | $93,400 | Below target |
| 45 | 4x salary (~$300K) | $142,000 | Below target |
| 50 | 6x salary (~$420K) | $206,000 | Below target |
| 55 | 7x salary (~$490K) | $290,000 | Close |
| 60 | 8x salary (~$600K) | $364,000 | Near target |
| 65 | 10x salary (~$750K) | $426,000 | Varies widely |
Retirement Cost of Living by Location
| State / Region | Cost Index | Avg Monthly Retirement Budget | Notes |
|---|---|---|---|
| Mississippi, Arkansas | 0.75x | $2,800–$3,400 | Lowest cost in US |
| Tennessee, Missouri, Indiana | 0.88x | $3,200–$3,900 | Good value |
| Average U.S. | 1.0x | $3,800–$4,500 | Baseline |
| Colorado, Virginia, Minnesota | 1.15x | $4,400–$5,200 | Above average |
| New York, Massachusetts | 1.35x | $5,100–$6,200 | High cost |
| California, Hawaii | 1.60x | $6,000–$7,500+ | Very high cost |
Social Security Claiming Age — Impact on Benefits
| Claim Age | Benefit vs. Full Retirement Age | Break-Even vs. Waiting to 70 |
|---|---|---|
| 62 (earliest) | −30% permanently | Never breaks even if you live past 78 |
| 65 | −13% | Better if you live past 80 |
| 67 (full) | 100% baseline | Standard option |
| 70 (max) | +24% permanently | Best if you live past 82 |
12 Retirement Savings Tips for 2026
Max Out Your 401K First
The 2026 401K contribution limit is $23,500 ($31,000 if you are 50+). Always capture the full employer match first — that is an instant 50–100% return.
Open a Roth IRA If Eligible
Roth IRA contributions grow tax-free. The 2026 limit is $7,000 ($8,000 if 50+). Income limits apply — phase-out starts at $146K single, $230K married.
Use HSA as a Retirement Account
A Health Savings Account is triple tax-advantaged. After age 65, you can withdraw for any purpose and it acts like a traditional IRA. Contribute the max every year.
Delay Social Security if Possible
Waiting from 67 to 70 increases your monthly benefit by 24% permanently. If you have other income sources, waiting usually makes sense if you expect to live past 82.
Consider Geographic Arbitrage
Retiring to a lower-cost state can cut your required nest egg by 25–35%. Moving from California to Tennessee could save $2,000+ per month.
Budget Separately for Healthcare
A 65-year-old couple needs an estimated $315,000 just for healthcare costs in retirement. Build this in as a separate line item, not part of your general expenses.
Rebalance Your Portfolio Annually
As you approach retirement, gradually shift from stocks to bonds. A common rule: subtract your age from 110 to get your ideal stock percentage (e.g., 75% stocks at age 35).
Plan for Sequence of Returns Risk
A market crash in your first few years of retirement is more damaging than one later. Keep 1–2 years of expenses in cash to avoid selling investments at a loss.
Do Roth Conversions Before 73
Converting traditional IRA money to Roth during low-income years reduces future Required Minimum Distributions and can lower your lifetime tax bill significantly.
Account for Inflation in Expenses
What costs $50,000 today will cost $90,000+ in 30 years at 2% inflation. Your portfolio needs to grow faster than inflation — plan for 3% inflation, not 2%.
Consider Part-Time Work Early in Retirement
Working even $1,000–$2,000/month in your early retirement years dramatically reduces portfolio withdrawal pressure and extends how long your money lasts.
Get a Fee-Only Financial Advisor
A fee-only (not commission-based) certified financial planner can create a personalized plan. Look for a CFP who charges a flat fee or hourly rate, not a percentage of assets.