Your Future, Your Number: How to Calculate Your Retirement Goal

You’ve probably heard it a hundred times: “You need to save for retirement.” And you agree—so you start putting money away into a retirement account.

But have you ever stopped to ask: How much will you actually need? Or more importantly, how much do you want for your retirement?

Your “retirement number” is deeply personal. It depends on your lifestyle, goals, values, and the future you envision for yourself.

One Size Doesn’t Fit All

You might be someone who dreams of retiring early and is saving aggressively now. Or maybe you prefer to live fully today and are okay retiring a bit later. Most people fall somewhere in between—and that’s perfectly okay.

The goal? Make sure you can retire with confidence and resources.

Start With a Range

We recommend coming up with two numbers:

• A low-end goal (your "minimum lifestyle" retirement)

• A high-end goal (your "ideal lifestyle" retirement)

This helps you prepare for uncertainty, balance priorities, and stay motivated. Most importantly, make sure your number reflects the lifestyle you want to live—not what anyone else thinks retirement should look like.

Why Having a Range Matters

A retirement range helps because:

• You may not be able to save enough for the high end.

• Markets fluctuate—having flexibility reduces stress.

• It helps you estimate how much to invest monthly, and gives you permission to land somewhere in the middle.

4 Questions to Define Your Retirement Number

1. How much will you spend annually in retirement?

    Start by estimating your yearly expenses:

·       Will you have a mortgage or car payments?

·       Do you want to travel often?

·       What about healthcare costs?

Pro Tip: Factor in inflation. That $50 dinner out might cost $90 in 20 years. It’s like how your grandparents used to pay $1 for a movie ticket, but now it’s $20. That’s inflation at work!

2. When do you want to retire?

Age 65 is often tossed around as the "standard" retirement age, but there's no rule. Want to retire at 55? 70? It's your call.

3. How long do you expect retirement to last?

A little morbid, sure, but important. If you retire at 60 and live to 95, you’ll need to fund 35 years of expenses.

4. Will you work part-time during retirement?

Some retirees keep part-time jobs for fun or fulfillment. Even earning $1,000/month could cover your dining-out budget and reduce how much you need to save.

The Math Behind Your Number

Once you estimate your annual retirement expenses, you can work backward:

1. Consider Social Security. You can estimate your benefits at SSA.gov. It’s quick and super helpful.

2. Do you have a pension? If you work in the public sector, this could be a significant piece of your retirement puzzle.

3. Use a Lifestyle-Based Method to estimate how much you need to save. We’ve created a free spreadsheet to help you figure out how much to invest monthly.

   
   

Important: Life happens. Some months you’ll invest more, some less. Maybe you don’t need to save quite as aggressively as you thought. Or maybe you’ll decide to live a little more now—and that’s okay too. It’s all about balance.

Where Do You Stand?

Once you run the numbers, ask yourself:

• Am I on track?

• Am I ahead of the game?

• Am I a little behind?

If you’re on track: Great! Keep going. If you’re ahead: Awesome work! Evaluate if you want to spend more in retirement or retire earlier? If you’re behind: Don’t panic. Review your spending, shift priorities, and course-correct.

Take Action Now — Your Future Depends on It

• Knowing your retirement number is just the beginning. The real progress happens when you take consistent action toward it—starting today.

• Whether you're investing $50 or $500 a month, what matters most is building the habit. Every dollar you invest is a step closer to financial freedom—and the earlier you start, the more your money can grow over time.

• Already investing? Revisit your contributions. Can you increase them even a little based on your retirement goals?

• Just getting started? Begin with what you can. Small steps now create massive impact later.

The best time to start was yesterday. The next best time? Right now.

Use Tools That Work for You

Grab our free simple spreadsheet to get started. It’s meant to guide you the right direction, not a set in stone plan. Update it as life evolves.

Prefer not to use spreadsheets? Most brokerage firms (like Fidelity or Vanguard) offer retirement calculators. Just be sure to keep your info updated and revisit your scenarios regularly.

Final Thoughts

Planning for retirement isn’t just about numbers. It’s about creating a future you’re excited to live in—and giving yourself the peace of mind to enjoy today too.

Finally, if you aren’t sure how to start investing, then grab our free guide Investing Made Simple!

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