Penny
Penny
Financial Planner
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By Penny TeamJanuary 25, 2026

How Much Money Do You Need to Retire? The Simple Math (and a Real Plan)

Problem: You don’t know your retirement number, so monthly investing feels random.

Promise: Get a clear target and turn it into a monthly plan you can actually follow.

If you want a money manager, not just another budget, see Money Manager for Sheets.

MethodBest forTrade‑off
Rule of 25 (4% rule)Quick targetNot personalized
Expense‑first planDetailed budgetingMore setup time
Contribution‑backsolveMonthly action planRequires assumptions

The simple version

Estimate your annual spending in retirement, then multiply by a conservative factor (commonly 25× as a starting point). The point is not precision—it is turning “retire someday” into a target you can plan around.

For a step-by-step breakdown (including how to translate the number into monthly contributions), read: how much do I need to retire?

The plan that actually works

Related reads: how much should I invest each month, monthly investing plan, and the finance answers hub.

Want your plan in one place? Open the free Google Sheet.

Want to try Penny in Google Sheets?Open the free Google Sheet.

Or browse Finance Answers for fast, decision-focused help.