How much do you really need to retire?
Why a single "magic number" can mislead, and the simple spending-first approach we use with clients instead.
Rules of thumb like "save ten times your salary" make for good headlines but poor plans. What matters is what you will spend, when you will spend it and where the income will come from.
Start with spending, not savings
Write down what a typical retirement year looks like: housing, travel, helping family, healthcare. Then separate essentials from nice-to-haves. That split shapes everything else.
Map your income floor
- Pensions and government benefits form a reliable base.
- The gap between that base and your essentials is what savings must cover.
- Nice-to-haves can flex with markets.
- Timing of benefits can change lifetime income meaningfully.
A plan stress-tested across many market scenarios gives a far more honest answer than any single number.
This article is for general information only and is not personal investment, tax or legal advice. Investing involves risk, including possible loss of principal, and past performance does not guarantee future results. Speak with a qualified professional about your own situation.