How Much Money Do You Need to Retire Early?
These Tables Give You an Idea of How Much Money You Need to Retire Early
This is really an amazing table to look at! Depending on your age and your lifestyle, you need to save a lot of money to be able to retire early. There are two important factors that make a difference in how much money you need to retire early: how many years you'll be retired; and how much money you need each year. The third factor, which is also important, is the rate of return that you will earn on your retirement savings. The chart below assumes 6%, which is the historical average rate of return for very non-risky assets. If your time to retirement is very long, you should be able to invest in slightly riskier assets and get a higher rate of return than 6%. Also, the table does not take into account inflation; the higher inflation is, the more money you'll need to retire.
How to Read the Table. The table below shows how much money you'll have to save to retire early. Notice that if you only need $20,000 per year to live on, you can retire with a relatively small amount of money. However, if your lifestyle requires more (which it likely does), you'll have to save significantly more money to retire early. Also notice that the earlier you retire, the more money you'll need.
Money Needed to Retire, Given Number of Years to Live and Annual Income Desired
(assumes a 6% return on retirement savings, pre-tax dollars)
|
Years to Live |
$20,000 | $25,000 | $30,000 | $35,000 | $40,000 |
| 50 Years | $316,862 | $396,078 | $475,293 | $554,509 | $633,724 |
| 45 Years | $311,083 | $388,853 | $466,624 | $544,395 | $622,165 |
| 40 Years | $303,276 | $379,094 | $454,913 | $530,732 | $606,551 |
| 35 Years | $292,729 | $365,911 | $439,093 | $512,276 | $585,458 |
| 30 Years | $278,482 | $348,102 | $417,723 | $487,343 | $556,964 |
| 25 Years | $259,236 | $324,045 | $388,854 | $453,663 | $518,472 |
| 20 Years | $233,237 | $291,546 | $349,856 | $408,165 | $466,474 |
| 15 Years | $198,116 | $247,645 | $297,174 | $346,703 | $396,231 |
| 10 Years | $150,671 | $188,339 | $226,007 | $263,675 | $301,342 |
| 5 Years | $86,580 | $108,225 | $129,870 | $151,514 | $173,159 |
Money Needed to Retire, Given Number of Years to Live and Annual Income Desired - Continued
(assumes a 6% return on retirement savings, pre-tax dollars)
|
Years to Live |
$45,000 | $50,000 | $75,000 | $100,000 |
| 50 Years | $712,940 | $792,155 | $1,188,233 | $1,584,310 |
| 45 Years | $699,936 | $777,707 | $1,166,560 | $1,555,414 |
| 40 Years | $682,370 | $758,189 | $1,137,283 | $1,516,378 |
| 35 Years | $658,640 | $731,822 | $1,097,734 | $1,463,645 |
| 30 Years | $626,584 | $696,205 | $1,044,307 | $1,392,410 |
| 25 Years | $583,281 | $648,090 | $972,135 | $1,296,180 |
| 20 Years | $524,783 | $583,093 | $874,639 | $1,166,185 |
| 15 Years | $445,760 | $495,289 | $742,934 | $990,579 |
| 10 Years | $339,010 | $376,678 | $565,017 | $753,356 |
| 5 Years | $194,804 | $216,449 | $324,674 | $432,898 |
See Also: Other Retirement Articles
