How Much Do I Need To Save Each Month?
Published August 18, 2025

THE ONE MINUTE TAKEAWAY

Saving for retirement doesn’t have to be overwhelming. Whether your goal is $1 million or a comfortable cushion, the key is to start early, stay consistent, and take advantage of compound growth. The longer your money has to grow, the less you need to save each month. The most important move? Start now and build from there.

The $1 Million Retirement Goal

Many people aim to retire with $1 million in savings. It’s a round number, and for many, it represents financial security in retirement. But how much do you actually need to save each month to reach that goal? While financial advisors often recommend saving 10% to 15% of your income, the amount you need to put away depends on your age when you start saving, your target retirement age, and your investment return rate.

What If You Want to Retire with $1 Million?

Let’s assume:

  • You start with $0 in savings

  • You earn a 6% average annual return

  • You want to retire at age 67

Based on this, here’s how much you’d need to save monthly depending on your starting age:

  • Start at age 20 → Save $319/month

  • Start at age 30 → Save $613/month

  • Start at age 40 → Save $1,240/month

The Earlier You Start, the Easier It Gets

As the numbers show, starting early gives your investments more time to grow, thanks to compound interest. But no matter your age, it’s never too late to start. Even if you can’t hit the recommended amount right away, starting something is always better than nothing.

Don’t Forget About Employer Contributions

If you’re contributing to a workplace retirement plan, your employer might be helping too. Many employers:

  • Match your contributions (up to a certain amount)

  • Add additional funds on your behalf

This extra money can significantly boost your progress toward that $1 million goal. If you’re unsure what your employer offers, check with your plan administrator and make sure you’re contributing enough to receive the full match if one is available.

Start Small, Grow Over Time

If maxing out your savings isn’t possible today, increase your contributions gradually. A few dollars more each year can make a big difference over time. Remember the old saying:

“Pennies make pounds, and pounds make profits.”

Every step counts.

Final Thoughts

Whether you’re 20 or 40, the key to retiring with $1 million is starting as soon as you can and sticking with it. Use employer matches, make consistent contributions, and let time and compounding do the heavy lifting. Your future self will thank you.

It may also be beneficial to consult with a financial advisor to ensure your investment choices align with your personal financial goals.

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