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How much money do I actually need to retire comfortably?

I'm 45 years old and I make $90K a year. I have about $200K in my 401k and $50K in savings. I want to retire at 60. I've seen calculators that say I need $2 million, others that say $1 million. I have no idea what's realistic. I don't live lavishly—I just want to be comfortable without stressing about money.

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RetirementPlanner
asked 12h ago · 10 rep

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Let me give you a realistic number based on your situation:

**The math:

You want 15 years of retirement (60-75). If you want $50K/year in today's dollars, that's $750K total. But with inflation, you actually need about $1.1-1.2M saved by 60.

Can you get there? Yes, probably.

Current savings: $250K

15 years of maxing 401k ($23K/year) at 7% return = ~$600K additional

Total: $850K. That's close but might be a bit short.

What to do:

1. Max your 401k every year ($23K in 2024). Get the full employer match—that's free money.

2. Open a Roth IRA ($7K/year). Tax-free growth is huge over 15 years.

3. You might need to work until 62-63 instead of 60. Every extra year helps massively.

4. Cut expenses now. If you can live on $60K instead of $90K, you need way less saved.

You're in good shape but not "set it and forget it" shape yet. Keep pushing.

F
FinanceAdvisor answered 12h ago

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