Retirement planning can feel overwhelming, but it boils down to a few key questions: How much will you need? How much should you save? And how do you make it last?
Estimating Your Number
A common rule of thumb is the 25× rule: multiply your expected annual expenses in retirement by 25. If you'll need $40,000/year, aim for $1,000,000 saved. This is based on the 4% safe withdrawal rate.
The 4% Rule
The 4% rule suggests you can withdraw 4% of your portfolio in the first year of retirement, then adjust for inflation each year, with a high probability of not running out of money over 30 years.
How Much to Save
Most financial planners recommend saving 10–15% of your gross income for retirement, including any employer match. If you start late, you may need to save 20% or more.
Staying on Track
- Increase your contribution rate whenever you get a raise.
- Take full advantage of employer 401(k) matching — it's free money.
- Rebalance your portfolio annually to manage risk.
- Review your plan yearly and adjust as circumstances change.
Our retirement calculator lets you model different contribution levels, return assumptions, and retirement ages to see how they affect your nest egg.