How Much Monthly Income You’ll Really Need to Retire Comfortably in 2025

Financial planners typically recommend saving about 75% of your pre-retirement income to maintain a comfortable lifestyle during retirement. This is because your expenses in retirement often drop to around 75% of your current spending.

Calculating Monthly Retirement Income

If your current household income is the U.S. median of $83,730 per year, you can expect to need roughly $62,800 annually in retirement. This equals approximately $5,230 per month to sustain a similar lifestyle.

Determining Total Savings Required

To estimate the total amount you need to save, use a common guideline known as the 4% rule. This rule suggests you should save enough so that withdrawing 4% annually covers your retirement expenses.

With a monthly need of $5,230, your annual retirement spending is about $62,800.
Applying the 4% rule, you would require a nest egg of approximately $1.57 million to generate that income safely.

Key Questions to Plan Retirement

How much will you need per month during retirement?
What total savings target should you aim for to achieve that income?

By answering these, you can align your savings strategy with your retirement income goals.

"Financial planners typically advise saving enough to replace about 75% of your pre-tax income for retirement."

"Using the 4% rule, you'd need to save $1.57 million in total to cover a $5,233 monthly retirement income based on median U.S. earnings."

Author's summary: To retire comfortably in 2025, plan to replace 75% of your pre-retirement income and save about $1.57 million using the 4% withdrawal rule for stable monthly income.

Investopedia — 2025-11-02