How much do I need to retire?

Multiply your expected annual retirement expenses by 25. This is based on the 4% safe withdrawal rate. For example, $60,000/year in expenses requires a $1,500,000 portfolio. Subtract guaranteed income like Social Security before calculating — if you expect $24,000/year from Social Security, you only need to fund $36,000/year from savings, requiring a $900,000 portfolio.

What is the 4% rule for retirement?

The 4% rule states you can withdraw 4% of your portfolio in year one of retirement, adjust for inflation each year, and your money should last 30+ years in most historical market scenarios. It originated from the 1998 Trinity Study. For retirements longer than 30 years, a 3.5% withdrawal rate is considered safer.

When should I claim Social Security?

Claiming at 70 vs 62 increases your monthly benefit by approximately 77%. The break-even point — where delaying pays off — is typically around age 78-80. If you expect to live past 80 and have other income to bridge the gap, delaying to 70 is usually the better financial choice. For married couples, the higher earner should generally delay to maximize the survivor benefit.

How much should I have saved for retirement by age?

According to Federal Reserve data, US median retirement savings by age are approximately: age 35: $45,000; age 40: $93,000; age 45: $145,000; age 50: $203,000; age 55: $290,000; age 60: $368,000. A common benchmark is to have 1x your salary saved by 30, 3x by 40, 6x by 50, and 10x by retirement.

What is a Monte Carlo simulation for retirement?

A Monte Carlo simulation runs your retirement plan through thousands of randomly generated market scenarios to show the probability your savings will last. Instead of assuming average returns every year, it models the full range of possible outcomes including bad sequences of returns. A success rate above 90% is considered very safe; above 80% is generally acceptable.

What are the 401k contribution limits for 2026?

For 2026, the 401k employee contribution limit is $24,500 (under age 50) or $32,500 (age 50+). Workers aged 60-63 can contribute up to $35,750 under the super catch-up provision. The IRA contribution limit is $7,500 ($8,600 if 50+). The HSA limit is $4,400 for individuals and $8,750 for families.

How does inflation affect retirement savings?

At 3% annual inflation, your purchasing power is cut in half every 24 years. For a 30-year retirement, $60,000 in expenses today would cost over $145,000 in year 30. To protect against inflation: stay invested in stocks throughout retirement, delay Social Security to maximize COLA-adjusted benefits, consider TIPS bonds, and use a realistic 2.5-3% inflation assumption in your retirement calculator.

Yes, retiring at 55 is achievable but requires more savings than a traditional retirement. With a 40-year retirement horizon, use a 3.5% withdrawal rate (28-30x annual expenses instead of 25x). Key challenges: no Medicare until 65 (budget $800-1,500/month for health insurance), no Social Security until 62 at earliest, and no penalty-free 401k access until 59.5 (except via the Rule of 55 for your current employer's plan).

October 23, 2026 · fireandretire.com

When Can I Retire? How to Find Your Date (With Real Numbers)

"When can I retire?" is the question this whole site exists to answer. The frustrating truth is that there is no single retirement age — it depends on three numbers that are entirely personal to you. The good news is that once you know those three numbers, the answer stops being a feeling and becomes arithmetic.

The Three Numbers That Decide Your Retirement Date

Every "can I retire yet?" question reduces to the same three inputs:

How much you've saved — your investable portfolio (not your house, unless you plan to sell it).
How much you'll spend — your annual retirement budget in today's dollars.
How much guaranteed income you'll have — mainly Social Security, plus any pension.

Your portfolio doesn't have to cover your whole budget — only the gap between spending and guaranteed income. That gap, divided by a safe withdrawal rate, is your target number. When your savings reach it, you can retire.

The 25x Rule (and Why It's a Starting Point, Not a Verdict)

The quickest estimate comes from the 4% rule: multiply your annual spending gap by 25. If you need $50,000 a year from your portfolio, aim for roughly $1,250,000.

But 25x assumes a 30-year retirement. If you want to retire in your 50s, your money has to last 35-45 years, and a longer horizon deserves a more conservative rate — closer to 3.5%, or about 28-30x. See What Is the 4% Rule? and How to Retire at 55 for the longer-horizon math.

Retirement Ages That Actually Change the Rules

Your "when can I retire?" answer isn't only about money — certain ages unlock or restrict access to accounts and benefits:

Age 55 — the Rule of 55 lets you withdraw from your current employer's 401(k) without the 10% early-withdrawal penalty if you leave the job that year.
Age 59½ — penalty-free access to IRAs and most 401(k)s. Before this, withdrawals generally cost an extra 10%.
Age 62 — earliest Social Security. But claiming now locks in a much smaller check for life.
Age 65 — Medicare eligibility. Retiring before this means you must bridge your own health insurance.
Age 67 — full retirement age for anyone born 1960 or later (your "full" Social Security benefit).
Age 70 — maximum Social Security. Every year you wait past 67 adds roughly 8% to your benefit.
Age 73 — Required Minimum Distributions begin, forcing taxable withdrawals from traditional accounts.

See the full timeline on our Retirement Milestones by Age page.

How to Find Your Own Date, Step by Step

1. Estimate your annual retirement spending

This is the number people get wrong most often. Most households spend 70-80% of their pre-retirement income, but the composition changes — commuting and mortgage may drop while healthcare and travel rise. If you don't know where to start, use our expense estimator to build a realistic budget from a few questions about your household.

2. Subtract your guaranteed income

Estimate Social Security with the SSA's statement or our benefit guide. Subtract it (and any pension) from your spending. The remainder is what your portfolio must fund.

3. Divide by a safe withdrawal rate

Use 4% for a traditional 30-year retirement, 3.5% if you're retiring in your 50s. Multiply the gap by the inverse (25x or 28x) to get your target portfolio.

4. Compare to what you have — and project forward

This is where a spreadsheet breaks down, because investment growth, inflation, Social Security timing, and taxes all interact. Use the free Fire & Retire planner to run a year-by-year projection. You'll see exactly which year your money lasts through your life expectancy — that's your retirement date.

The Variables That Move Your Date Most

Savings rate — the single biggest lever while you're working. Going from 10% to 20% of income can pull your date in by years.
When you claim Social Security — delaying from 62 to 70 raises your benefit by roughly 77%, which shrinks the gap your portfolio must cover.
Spending in the first decade — the "go-go" years are usually the most expensive. A flexible budget protects you against a bad market early on.
Healthcare costs before 65 — budget $800-$1,500 a month for ACA coverage if you retire early. See Healthcare Before Medicare.

What If the Answer Isn't the One You Want?

If your projection falls short of your target date, you have four levers: save more, work longer, spend less, or take on more (carefully managed) risk. Most people use a blend — for example, working part-time for two years while delaying Social Security often closes the gap entirely.

The important thing is to stop guessing. Run your numbers with the free planner, see your projected retirement year, then adjust one lever and watch the date move. That feedback loop is what turns "someday" into an actual date.

See your numbers in action

Enter your age and savings to get a personalized retirement projection in seconds — free, no signup needed.

Try the Calculator →Full Planner

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