Retirement Planning for Beginners: How Much Do You Need?

The 4% Rule

The 4% rule says you can withdraw 4% of your portfolio annually and have a high probability of not running out of money over 30 years.

Your Retirement Number

Divide your expected annual expenses by 0.04:

• Spend $40,000/year → need $1,000,000
• Spend $60,000/year → need $1,500,000

Building Your Plan

1. Start with your target using the Retirement Calculator
2. Account for inflation (2.5–3% annually)
3. Maximise tax-advantaged accounts (401k, IRA)
4. Review and adjust annually

Use the Retirement Calculator to project your path.