How much should I save for retirement?
There is no single dollar figure. The amount you need depends on one number: the monthly income you want when you stop working. Start there, work backwards to the nest egg that produces it, and you get a savings target you can actually act on. The calculator below does that maths for you in about a minute.
Work out your number in 60 seconds
Answer five questions and we'll email you a personalised Close the Gap report showing your monthly income gap, the nest egg you need, how much more to save each month, and how many extra income streams would close the gap sooner.
Your information is secure and only used to generate your personalized report.
Start with income, not a lump sum
Most people ask "how much should I save for retirement?" hoping for a round number like a million dollars. A lump sum on its own tells you nothing — what matters is the income it can pay you every month without running dry.
This calculator uses two working assumptions, the same ones behind your report:
- A 4% annual withdrawal rate. Each year you draw 4% of your invested savings, so your nest egg needs to be 25 times your desired annual income.
- A 7% average annual return on invested savings while you are still building the pot.
These are planning assumptions, not promises. Real returns vary year to year, and a bad run early in retirement changes the picture.
How big a nest egg does your lifestyle need?
Using the 4% rule, here is the invested total behind each level of monthly retirement income.
| Monthly income | Annual income | Nest egg needed |
|---|---|---|
| $3,000 | $36,000 | $900,000 |
| $5,000 | $60,000 | $1,500,000 |
| $8,000 | $96,000 | $2,400,000 |
| $10,000 | $120,000 | $3,000,000 |
| $15,000 | $180,000 | $4,500,000 |
Nest egg = desired annual income ÷ 4%. Figures are illustrative and before tax.
How much should I save each month, by age?
Starting age matters more than almost anything else. Below is the monthly contribution needed to reach a $1.5 million nest egg (a $5,000 monthly income) by age 65, starting from zero, at a 7% average annual return.
| Starting age | Years to invest | Monthly saving |
|---|---|---|
| 30 | 35 years | $833 |
| 40 | 25 years | $1,851 |
| 50 | 15 years | $4,732 |
| 60 | 5 years | $20,948 |
Calculated with the standard future-value-of-an-annuity formula at 7% a year, compounded monthly. If you already have savings, the calculator above credits them and lowers the monthly figure.
Why saving alone often isn't enough
Look at the table again. From age 50, a $5,000-a-month retirement needs roughly $4,700 set aside every single month — more than many households can spare after a mortgage and living costs. Most people won't be able to save enough for a comfortable retirement on the Save & Invest track alone.
That leaves a second track: raise your income instead of only shrinking your spending. Every new stream of monthly cashflow reduces the nest egg you need, because income you still earn is income your savings don't have to replace. Your report shows how many streams it would take to cover your gap, and the three ways we help people build them: an A.I. investing bot, creating and selling digital products, and Texitcoin cloud mining.
Common questions
How much should I save for retirement each month?
Divide the nest egg you need by the years you have left and work backwards at your expected return — or let the calculator do it. Starting at 30, roughly $833 a month reaches $1.5 million by 65; starting at 50, it takes about $4,732.
Is $1 million enough to retire on?
At a 4% withdrawal rate, $1 million supports about $40,000 a year, or $3,333 a month, before tax. Whether that is enough depends entirely on the lifestyle you have in mind.
What if I'm behind on retirement savings?
You have three levers: save more each month, retire later, or add income streams that keep paying after you stop working. The calculator compares the savings route with the added-income route so you can see which gets you there sooner.
See your own number
Run the retirement gap calculator and get your personalised Close the Gap report by email.
This guide is general information, not financial advice. Projections are illustrative, assume constant returns, and exclude tax, inflation and fees. Investment returns are not guaranteed and past performance does not predict future results. Speak to a licensed financial professional before making decisions.