Wealth Planning Insights

It’s one of the most common financial questions—and for good reason. Planning for retirement isn’t just about a single number, it’s about creating a strategy that fits your lifestyle, goals, and timeline. While everyone’s situation is unique, there are a few guiding principles that can help you estimate how much you’ll need.

The 80% Rule
A common guideline suggests you’ll need about 70–80% of your pre-retirement income each year to maintain your lifestyle once you stop working. For example, if you currently live on $100,000 a year, you might need $70,000–$80,000 annually in retirement.

The 4% Rule
Financial planners often use the 4% withdrawal rule as a benchmark. This rule suggests that if you withdraw 4% of your retirement savings each year, your nest egg should last about 30 years. That means if you want $80,000 a year, you’d need about $2 million saved.

Factors That Influence Your Number

• Lifestyle Choices: Do you plan to travel frequently or live more simply?
• Healthcare Costs: Medical expenses tend to rise with age and can significantly impact your needs. 
• Retirement Age: Retiring earlier means your savings need to stretch further. 
• Other Income: Consider pensions, Social Security, rental income or part time work.  

The sooner you start, the more you benefit from compound growth. Even small contributions add up over decades. If you’re starting later, don’t worry—you can still catch up by saving more aggressively and making strategic investment choices. There’s no one-size-fits-all answer, but having a clear plan makes all the difference. Consider running retirement calculators, speaking with a financial advisor, and reviewing your progress regularly. Saving for retirement isn’t just about a number—it’s about creating peace of mind for your future.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.