Want to Retire at 65? Here’s What You Need to Save Monthly

Planning for retirement is a journey that benefits greatly from an early start. The earlier you begin saving, the more time your money has to grow through compound interest. Below is a breakdown of how much you need to save each month to retire at 65 with a goal of accumulating $1 million, assuming a 6% annual return on your investments.

Starting at Age 20

Beginning your retirement savings at age 20 gives you 45 years to reach your goal. With a 6% annual return, you would need to save approximately $361 per month. Starting early allows you to contribute smaller amounts over a longer period, making the process more manageable.

Starting at Age 25

Starting at 25 means you have 40 years until retirement. To reach $1 million with a 6% return, your monthly savings should be around $499. While higher than starting at 20, it’s still a feasible amount with proper budgeting and financial planning.

Starting at Age 30

With 35 years to save, beginning at age 30 requires a monthly contribution of about $698 to reach the $1 million mark at a 6% return. This increase underscores the importance of starting as early as possible.

Starting at Age 35

Starting at 35 leaves you with 30 years to save. To accumulate $1 million with a 6% return, you’d need to save approximately $1,007 each month. The monthly amount increases significantly as the time horizon shortens.

Starting at Age 40

At 40, with 25 years until retirement, the required monthly savings jump to about $1,488 to reach $1 million at a 6% return. This highlights the impact of delayed savings on your retirement goals.

Starting at Age 45

Beginning at 45 gives you 20 years to save. To achieve a $1 million retirement fund with a 6% return, you’d need to save around $2,164 per month. The shorter timeframe necessitates higher monthly contributions.

Starting at Age 50

With only 15 years to save, starting at 50 requires a substantial monthly savings of approximately $3,440 to reach $1 million at a 6% return. This scenario emphasizes the challenges of late retirement planning.

Starting at Age 55

Starting at 55 leaves just 10 years to accumulate your retirement fund. To reach $1 million with a 6% return, you’d need to save about $5,846 each month. This significant amount reflects the urgency of starting savings earlier.

Starting at Age 60

Beginning at 60 provides only 5 years to save. To accumulate $1 million with a 6% return, your monthly savings would need to be approximately $14,333. This scenario illustrates the steep challenge of late-stage retirement saving.

Starting at Age 61

With 4 years to save, starting at 61 requires monthly savings of about $17,800 to reach $1 million at a 6% return. The required contributions become increasingly substantial as the timeframe shortens.

Starting at Age 62

Starting at 62, with just 3 years until retirement, you’d need to save approximately $22,400 per month to reach $1 million at a 6% return. This underscores the critical importance of early and consistent retirement planning.

Starting at Age 63

With only 2 years to save, beginning at 63 necessitates monthly savings of around $29,800 to achieve a $1 million retirement fund at a 6% return. The feasibility of such contributions is challenging for most individuals.

Starting at Age 64

Starting at 64, with just 1 year to save, would require monthly contributions of approximately $61,000 to reach $1 million at a 6% return. This scenario highlights the near impossibility of achieving substantial retirement savings without early planning.

These figures demonstrate the profound impact of starting your retirement savings early. The power of compound interest means that even modest monthly contributions can grow significantly over time. For personalized planning, consider using tools like the NerdWallet Retirement Calculator or the Bankrate Retirement Calculator to tailor your savings strategy to your specific needs and goals.