How much money do I need to retire?

Using the 4% rule, multiply your desired annual retirement income by 25. For example, if you want $48,000 per year in retirement, you need $1,200,000 saved. This allows you to withdraw 4% annually without depleting your savings over 30 years.

What is the 4% rule for retirement?

The 4% rule suggests you can withdraw 4% of your retirement savings in your first year, then adjust for inflation each year after, without running out of money over a 30-year retirement. It's based on historical stock and bond returns.

How much should I save for retirement each month?

Financial experts recommend saving 10-15% of your gross income for retirement. Start early to benefit from compound interest. At minimum, contribute enough to get your employer's full 401(k) match, which is essentially free money.

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The 4% Rule

The 4% rule suggests you can withdraw 4% of your retirement savings annually without running out of money over a 30-year retirement. To find your target:

Retirement Savings Needed = Annual Income × 25

Example: $48,000/year × 25 = $1,200,000 needed

Retirement Savings Tips

Start early - time is your greatest asset due to compound interest
Max out employer matching contributions - it's free money (401(k) in the US, RRSP matching in Canada)
Consider tax-advantaged accounts: Roth IRA/401(k) in the US, or TFSA in Canada for tax-free growth
In Canada, use your RRSP for tax-deferred growth and TFSA for tax-free withdrawals
Increase contributions with each raise
Review and rebalance annually

Did You Know?

Delaying retirement by 5 years can increase your annual retirement income by 50%.
In the US, Social Security replaces only about 40% of pre-retirement income. In Canada, CPP/QPP replaces about 25%.
The TFSA contribution room in Canada carries forward indefinitely if unused, making it valuable even if you can't max it out every year.

Created by

The Ugly Empire Team

Software engineers and data specialists with backgrounds in financial services, mathematics, and educational technology. Our team builds tools using industry-standard formulas verified against authoritative sources.

Last reviewed: January 2026

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Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, legal, medical, or professional advice. Always consult qualified professionals for important decisions. We strive for accuracy but cannot guarantee results will match real-world outcomes due to varying factors and individual circumstances.

Retirement Calculator

The 4% Rule

Retirement Savings Tips

Did You Know?

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