There truly is no right amount to save for retirement, largely because everyone has different expectations for what their retirement will look like. However, people can get into trouble when they don’t make a plan.
Saving for retirement isn’t easy, especially in today’s world, where the cost of living is high. Without doing anything, people could find themselves ill-prepared.
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Setting retirement goals will help workers understand how much they need to save. Are you on track to retire in 2030? Start by finding your monthly income target.
Many people look forward to retirement because, after decades of clocking in and out of the office, they want a more relaxing schedule that lets them focus on what they care most about in life. That could mean spending time with family and grandchildren, traveling, or focusing on hobbies they haven’t had time for in the past.
I think it’s safe to say that most people, at the very least, want to maintain the quality of their current lifestyles, and most want it to improve. Most retirement experts will tell you that you’ll need about 75% to 80% of your current income to maintain your current lifestyle. If you make $100,000 per year, for example, that means you’ll need $75,000 to $80,000.
If you divide that number by 12, the amount you’ll need is anywhere from $6,250 per month to $6,666 per month. Remember, this is for core expenses such as food, transportation, housing, and so on. It doesn’t necessarily include plans for travel or a vacation home.
This is a good baseline to start with. Then, consider your specific situation when you reach retirement.
For instance, if you purchased a home 20 to 30 years ago, most or all of your mortgage might be paid down, allowing you to eliminate the mortgage expense. If you’re no longer going into work, your transportation expenses might also come down. However, retirees might incur additional expenses, such as higher healthcare costs, as they often face higher medical bills.
Start with the baseline; then do your best to add and subtract costs based on what your lifestyle could look like in retirement.
This is another important retirement consideration. Obviously, your salary will stop when you retire, but you may receive a pension. Then there’s Social Security, the program you paid into throughout your career through payroll taxes. As of January 2026, the average monthly Social Security check for retirees was $2,071, or $24,852 per year.
