How much money do you need to retire?
The amount of money needed to retire comfortably can vary widely depending on an individual's lifestyle, retirement goals, and other factors such as healthcare costs and inflation. However, financial experts generally recommend that individuals aim to save enough to replace at least 70% to 80% of their pre-retirement income.
One common rule of thumb is the "4% rule," which suggests that retirees can withdraw 4% of their retirement savings each year while still maintaining their savings balance over the long term.
For example, if you want to withdraw $40,000 per year in retirement income, you would need to save $1 million. Of course, this is just a rough estimate and may not be appropriate for everyone, depending on their individual circumstances.
It's also important to consider factors like Social Security benefits, pensions, and other sources of retirement income when calculating how much you need to save for retirement. Additionally, you may want to consider working with a financial advisor to help you develop a comprehensive retirement plan that takes into account your specific goals, risk tolerance, and other factors.