How Much Do You Need To Save For Retirement?
According to a recent survey by Fidelity, Americans say they plan to have saved an average of more than $1.4 million for retirement. Although reaching $1 million is a very significant milestone, inflation unknowns, rising health care costs and longer lifespans can make $1 million saved for retirement seem inadequate. Retirement saving is less about reaching a specific account balance and more about the income your savings can generate once you stop working. What really matters is whether your savings, combined with other sources like Social Security, can support your lifestyle month after month.
Focus on Closing Your Retirement Income Gap
Many financial professionals recommend that you aim to replace 70%–80% of your preretirement income, though your needs may vary. Retirement income gap refers to the shortfall between the income you expect you’ll need in retirement and the income your savings and other sources (like Social Security) are projected to provide. For example, if you estimate needing $5,000 per month in retirement but your combined income sources are projected to generate $4,000, your retirement income gap would be $1,000 per month. Identifying this gap early allows you to adjust your plan — such as increasing contributions, delaying retirement or revisiting spending assumptions — to help stay on track.
Use a Retirement Needs Calculator
One of the best ways to estimate “how much is enough” is by using a retirement needs calculator, such as those provided by your retirement plan recordkeeper. These tools help translate your savings into a projected monthly income and identify potential gaps. Most calculators use a few key assumptions, including:
- Current age and retirement age
- Income and contribution rate
- Current savings balance
- Expected investment returns
- Inflation rate
- Estimated Social Security benefits
- How long you’ll need income in retirement
By adjusting these inputs, you can see how small changes — like saving 1% more or retiring a year later — can meaningfully impact your future income.
Bringing It All Together
Rather than chasing a “magic” number, focus on building a plan that supports your future lifestyle. Regularly reviewing your progress, increasing contributions when possible and using planning tools provided by your plan recordkeeper can help you reach your goals.
Information Sources: Fidelity: “Is $1 Million Enough to Retire?” (March 18, 2026); The Motley Fool: “How Much Do I Need to Retire Comfortably?” (March 4, 2026); Thrivent: “Retirement Income Planning Calculator” (2026; accessed April 1, 2026).
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material. HUB Retirement and Private Wealth employees are affiliated with and offer Securities and Advisory services through various Broker Dealers and Registered Investment Advisers, some of whom may or may not be affiliated with HUB International. HUB International owns the following Registered Investment Advisers: HUB Investment Partners; Global Retirement Partners, LLC; and RPA Financial. Additional information for each individual HUB International Registered Investment Advisor may be found in the respective Form ADV available on the SEC’s IAPD website at https://adviserinfo.sec.gov. Insurance services are offered through HUB International.
