How Much Do I Need to Retire Comfortably?

The question “How much do I need to retire comfortably?” can actually be answered two different ways.
One is: How much income will you need in retirement?
The other is: How much do you need to have saved to generate that income?

Let’s start with income. As a general rule of thumb, most people need somewhere between 70 percent and 90 percent of their pre-retirement income to maintain their current lifestyle. That’s a guideline, not a guarantee.

But before you lock onto a number, you have to define what “comfortable” means to you. Comfortable looks different for everyone. Once you define that lifestyle, the next step is backing it up with an actual dollar amount. What does that lifestyle cost each year?

That retirement income usually comes from a few sources: Social Security, pensions if you’re lucky enough to have one, and income from your investments.

Once we know how much income you’ll need, then we can work backward and determine how much you need saved and invested to support that lifestyle.

So how much do you need to retire comfortably?
Enough to support the life you want — and you get to define what that looks like.