How Much Do You Need to Retire Comfortably After 50?
Many people ask this question in their fifties, especially if retirement savings feel behind schedule. The short answer is: It depends on your lifestyle, health, and expected expenses. But let’s break it down clearly so you can plan with confidence.
“Do not save what is left after spending, but spend what is left after saving.” – Warren Buffett
The 80% Rule
Financial advisors often recommend aiming to replace 70–80% of your pre-retirement income. For example:
If your current annual income is $60,000, aim for $42,000–$48,000 per year in retirement income.
Why not 100%?
Most people spend less in retirement due to:
Paying off their mortgage
No commuting costs
Lower taxes with reduced income
Fewer work-related expenses (clothing, lunches, etc.)
The 25x Rule (Simple Calculation)
A common formula is to multiply your annual retirement spending needs by 25 to find your savings goal.
Example:
Annual spending goal: $45,000
Retirement savings needed: $45,000 x 25 = $1,125,000
This assumes a 4% withdrawal rate, meaning you can withdraw 4% per year from investments without running out over a 30-year retirement.¹
Factors That May Increase Your Needed Savings
✔ Healthcare costs. Medicare doesn’t cover everything. Average out-of-pocket medical costs for a couple retiring at 65 are estimated around $315,000 over retirement.²
✔ Longevity. If you have family members who lived into their late 80s or 90s, plan for a longer retirement period.
✔ Lifestyle choices. Travel, supporting adult children or grandchildren, and hobbies like boating or golf add to yearly expenses.
Social Security & Other Income Streams
Don’t forget to factor in Social Security.
The **average monthly Social Security benefit in 2024 is about $1,900 ($22,800/year).**³
If you have a pension or rental income, include that in your calculations.
For example:
| Annual need | $48,000 |
|---|---|
| Minus Social Security | –$22,800 |
| Remaining needed from savings | $25,200 |
In this case, applying the 25x rule to $25,200 results in a savings goal of $630,000.
Adjust for Late Start
If you’re starting serious retirement saving after 50:
Max out catch-up contributions.
In 2025, individuals 50+ can contribute up to $30,000 to a 401(k) (including catch-up) and $8,000 to an IRA.
Delay retirement if possible.
Each year you delay claiming Social Security after full retirement age increases your benefit by about 8% per year until age 70.
Reduce expenses.
Downsizing your home or relocating to a lower cost-of-living area can make a major difference.
Final Thought
Retirement planning after 50 can feel intimidating, but clarity brings confidence. Calculate your needed spending, review your current savings, factor in Social Security, and adjust your plan proactively.
If you’d like to take the next step, consider creating a detailed retirement budget this week. Small actions today build peace of mind for tomorrow.
– Julie W.
Bengen, W.P. (1994). Determining Withdrawal Rates Using Historical Data. Journal of Financial Planning.
Fidelity Retiree Health Care Cost Estimate, 2023.
Social Security Administration. Monthly Statistical Snapshot, March 2024.
Real life, real experiences. Share your wisdom, your wins, or even the mess — because life after 50 is worth talking about.
