The 25× rule, savings benchmarks by age, the right account order, and what to do if you're behind — everything you need to know to retire on your own terms.
The simplest way to calculate your retirement target: multiply your desired annual retirement income by 25. This is called the FIRE number, based on the 4% safe withdrawal rate — research showing that a diversified portfolio can sustain 4% annual withdrawals for 30+ years with very high probability.
If you want $60,000/year in retirement: $60,000 × 25 = $1,500,000. That's your number. It sounds enormous. But reached through consistent investing over a career, it's achievable for anyone earning a median income.
| Desired Annual Income | FIRE Number (25×) | Monthly Need at 7% Return / 30yr |
|---|---|---|
| $40,000/year | $1,000,000 | From age 35: ~$500/mo |
| $60,000/year | $1,500,000 | From age 35: ~$760/mo |
| $80,000/year | $2,000,000 | From age 35: ~$1,010/mo |
| $100,000/year | $2,500,000 | From age 35: ~$1,260/mo |
Social Security provides average benefits of $1,907/month ($22,884/year) as of 2025. If you expect $22,000 in annual Social Security benefits, your portfolio only needs to fund the remainder. A $60,000 income target minus $22,000 Social Security = $38,000 needed from portfolio = $950,000 target.
Fidelity publishes widely-used benchmarks for retirement savings by age. These are designed for someone targeting retirement at 67 with 10× their final salary saved. If you plan to retire earlier, you need more.
| Age | Recommended Savings | Example (on $70K salary) | On Track If... |
|---|---|---|---|
| 30 | 1× salary | $70,000 | Started saving in early-mid 20s |
| 35 | 2× salary | $140,000 | Saving 10–15% consistently |
| 40 | 3× salary | $210,000 | Maintained contributions through 30s |
| 45 | 4× salary | $280,000 | No major withdrawals or gaps |
| 50 | 6× salary | $420,000 | Catch-up contributions started |
| 55 | 7× salary | $490,000 | Maximizing 401k + IRA annually |
| 60 | 8× salary | $560,000 | Final accumulation phase |
| 67 | 10× salary | $700,000 | Ready to retire comfortably |
| Account | 2025 Limit | Catch-Up (50+) | Tax Treatment |
|---|---|---|---|
| 401k / 403b | $23,500 | $31,000 | Pre-tax (Traditional) or after-tax (Roth) |
| IRA (Traditional or Roth) | $7,000 | $8,000 | Depends on type |
| HSA (Individual) | $4,300 | $5,300 | Triple tax-advantaged |
| HSA (Family) | $8,550 | $9,550 | Triple tax-advantaged |
| Solo 401k (self-employed) | $70,000 | $77,500 | Pre-tax and/or Roth |
| SEP-IRA (self-employed) | $70,000 | Same | Pre-tax only |
Most people feel behind on retirement savings. The good news: being behind in your 30s or even 40s is very recoverable. Being behind in your 50s is harder but still addressable. Here's what actually moves the needle:
Compound interest is fundamentally a time problem. The same $500/month invested at 7% produces $567,000 over 30 years. Start 10 years later and invest the same amount — you get $260,000. The 10 year delay costs more than 50% of the final balance. No other financial decision has the same leverage as starting early.