Nest egg for $120,000 a year, by retirement age
The earlier you stop, the longer the money has to last, so the same spending needs a larger balance. The 4% rule, sized for 30-year retirements, says 25 times the spending at any age: $3,000,000.
| Retire at | Years to 95 | Trinity-style | Cautious |
|---|---|---|---|
| 40 | 55 | $5,720,000 | $9,920,000 |
| 45 | 50 | $5,410,000 | $9,100,000 |
| Retire at 50 | 45 | $5,050,000 | $8,220,000 |
| Retire at 55 | 40 | $4,690,000 | $7,230,000 |
| 58 | 37 | $4,420,000 | $6,670,000 |
| Retire at 60 | 35 | $4,250,000 | $6,320,000 |
| Retire at 62 | 33 | $4,030,000 | $5,950,000 |
| Retire at 65 | 30 | $3,710,000 | $5,250,000 |
| Retire at 67 | 28 | $3,510,000 | $4,840,000 |
| 70 | 25 | $3,180,000 | $4,280,000 |
How much Social Security takes off, retiring at 65
A benefit from 67 pays part of the $120,000 for life, so the portfolio only has to cover the rest, plus the two years before benefits start.
| Benefit a month | Invested | Bridge to 67 | Total |
|---|---|---|---|
| None | $3,710,000 | $0 | $3,710,000 |
| $1,500 | $3,150,000 | $36,000 | $3,186,000 |
| $2,000 | $2,970,000 | $48,000 | $3,018,000 |
| $2,500 | $2,780,000 | $60,000 | $2,840,000 |
Estimate your own benefit on Social Security by salary.
Other spending levels, retiring at 65
| Spending a year | 9 in 10 markets | 4% rule |
|---|---|---|
| $30,000 a year | $930,000 | $750,000 |
| $40,000 a year | $1,240,000 | $1,000,000 |
| $50,000 a year | $1,550,000 | $1,250,000 |
| $60,000 a year | $1,860,000 | $1,500,000 |
| $70,000 a year | $2,170,000 | $1,750,000 |
| $75,000 a year | $2,320,000 | $1,875,000 |
| $80,000 a year | $2,470,000 | $2,000,000 |
| $90,000 a year | $2,780,000 | $2,250,000 |
| $100,000 a year | $3,090,000 | $2,500,000 |
| $120,000 | $3,710,000 | $3,000,000 |
| $150,000 a year | $4,630,000 | $3,750,000 |
| $200,000 a year | $6,180,000 | $5,000,000 |
| $250,000 a year | $7,720,000 | $6,250,000 |
| $300,000 a year | $9,260,000 | $7,500,000 |
The other way round, what a balance supports: can I retire at 65 with $4 million? To see how long a balance lasts at your spending, use the how long will my money last calculator.
How it is worked out
The nest egg is the smallest balance, to the next $10,000, whose first-year withdrawal of the spending, raised with inflation every year, still leaves money at 95 in 9 of 10 of 1,000 simulated sequences of yearly returns. Trinity-style returns average 7% with 12% volatility and 3% inflation; cautious ones 5%, 15% and 2%. It is the same table the can I retire pages use, read the other way. With Social Security, the portfolio is sized for the spending the benefit does not cover, and the benefits it replaces before 67 are added as cash with no growth. Taxes come out of the spending. More on the methodology page.