For decades, age 65 has been viewed as the magic number for retirement. It was the standard finish line for a long career and the traditional start of a well-earned rest. However, as we navigate 2026, the definition of a "comfortable nest egg” has evolved. Longer life expectancies and rising costs mean that reaching your goal requires two things: a solid savings strategy and a plan to protect those savings from the unexpected.
Planning for the future can feel overwhelming, but you don’t have to do it alone. By understanding where you stand today and identifying the milestones ahead, you can move from uncertainty to confidence. Whether you’re just starting out or are nearing the home stretch, having a seasoned perspective can make all the difference in ensuring your golden years are truly golden.
The Benchmarks: How do you measure up?
When you’re asking, "How much money do I need to retire?" it helps to have a yardstick. While everyone’s journey is unique, seasoned financial professionals often use specific benchmarks to help individuals evaluate their progress. These aren't rigid rules, but rather helpful milestones to help you keep pace with your future needs.
To get a clear picture of your trajectory, consider these three widely accepted retirement milestones:
The 10x Rule: A common benchmark is to save 10 to 12 times your final annual salary by age 67. For example, if you expect to earn $100,000 a year toward the end of your career, a target of $1 million to $1.2 million can provide a sturdy foundation.
The 80% Rule: Many people estimate they will need approximately 70–80% of their pre-retirement income to maintain their current lifestyle once they stop working. This accounts for the fact that you’ll likely no longer have commuting costs or the need to save for retirement itself.
Savings by Age: Breaking down your retirement goals by age can make the process feel more manageable. To help you track your progress, we’ve broken down common savings goals by decade. The following table and chart provide a simple overview of the milestones many people aim for to stay on track toward a comfortable retirement.
Milestone Age | Target Savings Goal | Why This Number Matters |
Age 30 | 1x your salary | Starting early allows the "snowball effect" of compound growth to do the heavy lifting for you later. |
Age 40 | 3x your salary | By your 40s, you’re often in your prime earning years—this is the time to bridge the gap between early savings and future needs. |
Age 50 | 6x your salary | This is a pivotal decade. If you're behind, it's often the perfect time to start using "catch-up" contributions to boost your total. |
Age 60 | 8x your salary | As you get closer to the finish line, your focus shifts to protecting the nest egg you've built while continuing to grow it. |
Age 67 | 10x your salary | Reaching this goal provides a sturdy foundation, typically aimed at replacing about 45% of your pre-retirement income. |
These benchmarks provide a starting point for your strategy, serving as a baseline for comparing your current assets. However, a "one size fits all" number rarely works for everyone. Understanding these figures is just the first step toward building a plan that fits your specific life.
Factors That Change Your “Number”
While benchmarks are helpful for a general estimate, your actual "number" is personal. It’s influenced by your dreams, your health, and the current economic climate. To find a more accurate answer to "how much do I need to save for retirement," you have to look beyond the averages and consider the variables that are unique to your life.
Several key factors can shift your savings goals significantly, including:
Lifestyle Choices: How do you picture your retirement? A frugal retirement focused on quiet time at home requires a very different budget than an active retirement filled with travel and new hobbies.
The Healthcare Wildcard: This is often the largest unplanned expense for retirees. According to the 2025 Fidelity Retiree Health Care Cost Estimate, the average 65-year-old couple can expect to spend approximately $172,500 on healthcare throughout retirement. When you factor in healthcare inflation and rising Medicare Part B premiums, it becomes clear that healthcare is a vital line item in your budget.
The Role of Social Security: Your monthly benefit helps reduce the "gap" your savings must fill. For 2026, it’s important to account for the most recent Cost-of-Living Adjustment (COLA), which helps your benefits keep pace with inflation.
By weighing these factors, you can move from a generic estimate to a personalized goal. Once you know what your "number" looks like, the next step is looking at the tools available to help you reach it—especially if you feel you need to pick up the pace.
The "Catch-Up" Strategy
If you feel like you’re behind on your retirement investing, take a deep breath—you aren't alone. Many people find their peak earning years happen later in life, providing a perfect opportunity to close the gap. The key is to shift your focus toward maximizing your current opportunities. It’s also important to remember that benchmarks are the floor, or the starting point, not the ceiling.
There are several effective ways to boost your progress and strengthen your nest egg:
Max Out Contributions: Take full advantage of 401(k) and IRA catch-up limits. In 2026, the "super catch-up" provisions allow older workers to contribute even more to their employer-sponsored plans, providing a powerful tax-advantaged boost to savings.
Downsizing Early: You don't have to wait until retirement to downsize. Selling a larger family home now can free up home equity to be reinvested and grow over the next several years.
The Protection Pivot: As you build wealth, it becomes vital to ensure your insurance coverage is "right-sized." You want to avoid paying for more than you need, but you must have enough to secure your progress. It is important to work with experienced agents to ensure your coverage fits your budget so you don't overpay and can allocate more of your income directly to savings.
By using these strategies, you can make significant gains in a relatively short amount of time. As you refine your savings plan, it’s equally important to consider how other financial tools, like life insurance, can support your long-term goals.
How Life Insurance Supports Your Retirement Goals
Many people view life insurance only as a death benefit, but it is actually a versatile tool in retirement planning. When used carefully, it can protect your savings and even provide a source of extra income. It acts as both a safety net for your loved ones and a potential way to increase your own financial security.
Consider how these different life insurance features can complement your retirement strategy:
A Safety Net for Milestones: If you were to pass away before reaching retirement age, term life insurance ensures your spouse’s retirement remains funded, and the mortgage is paid.
Life Insurance Retirement Plans (LIRPs): A LIRP uses a permanent policy to build cash value that you can use later in life.
Tax-Deferred Growth: The cash value within permanent life insurance grows without immediate tax implications, allowing your money to grow more efficiently over time.
Tax-Free Income and Asset Protection: You can often use policy loans to help with income during market downturns, preventing you from having to sell stocks at a loss. Additionally, life insurance provides an efficient way to leave a legacy, potentially allowing you to spend more of your actual retirement savings while you’re alive.
Life insurance is more than just a "just in case" policy; it's a structural component of a solid financial plan. Adding the right coverage ensures that the hard work you put into your savings stays protected.
SelectQuote Can Help You Protect What You’ve Built
You’ve worked hard for your savings—don't leave them unprotected. At SelectQuote, we believe that your retirement plan is only as strong as the protections you have in place. With over 40 years of experience and more than 60 million families helped, we are seasoned in the details of finding the right coverage for every stage of life.
Life insurance is about more than just a death benefit; it’s about identifying the right financial tools to help you reach your milestones. Whether you need a term life insurance policy to protect your family during your peak earning years or a permanent policy that builds cash value to supplement your future income, we help you find a strategy that supports your long-term vision.
Our licensed agents do the heavy lifting for you, taking the time to understand your unique needs and budget. We use our technology to compare options from highly rated carriers, ensuring you get the protection you need without overpaying. Let us help you find a cornerstone for your retirement plan so you can move forward with confidence.
