How much do I need to retire?
You need enough savings, plus your government and workplace benefits, to cover what you’ll spend each month for the rest of your life. There isn’t one number that’s right for everyone — it comes down to your own spending, your own benefits, and how long your money needs to last.
Start with what you'll spend, not what you'll save
Most retirement advice starts with a savings target. It’s more useful to start with your spending: housing, food, transport, insurance, health costs, and the things you actually want to do with your time. Add those up for a month, then a year — that’s the number your income in retirement has to match.
Subtract what's already coming in
Next, line up what you’ll receive without touching your savings: Social Security or CPP and OAS, a workplace pension if you have one, and any part-time or rental income you plan to keep. What’s left over is the gap your savings need to fill.
Turn the gap into a savings target
If your savings need to cover a $1,500-a-month gap, the amount you need depends on how long you expect to draw on it and how it’s invested — which is why a single rule of thumb (like the 4% rule, covered in the next guide) is a starting point, not a guarantee. Account for taxes too: a dollar withdrawn from a 401(k), IRA, or RRSP isn’t a dollar in your pocket — see how taxes work in retirement.
A worked example
- Monthly spending in retirement: $4,200
- Social Security at full retirement age: $2,100
- Small pension: $400
- Monthly gap to cover from savings: $1,700
- Covering $1,700/month ($20,400/year) at a 4% withdrawal rate takes roughly $510,000 saved
Change any one input — spend less, delay Social Security, work two more years — and the savings target moves with it. That’s the whole point of checking your own numbers instead of someone else’s example.
Why a calculator beats a rule of thumb
Rules of thumb assume a stranger’s spending, a stranger’s benefits, and a stranger’s tax situation. When Can I Retire uses your real numbers — your statements, your benefits, your country’s tax rules — and shows every step of the math in plain words, so you can see exactly where your number comes from.
Try it with your own numbers.
See your own retirement age and readiness in about 10 minutes — free, always.
Check for freeLast checked: October 2026
When Can I Retire is education, not financial advice.