There is no single magic number, but proven benchmarks can get you close. Here is how to estimate yours.
Start with your spending, not a round number
Your retirement number flows from your expected annual spending, not an arbitrary target. Estimate yearly expenses in retirement, then subtract guaranteed income like Social Security and any pension. The remaining gap is what your savings must cover. A common shortcut: multiply that annual gap by 25 (the inverse of the 4% rule) to estimate the savings needed. For example, a $40,000 yearly gap suggests about $1 million in savings. Most retirees need to replace 70-80% of pre-retirement income, since some work-related costs disappear while healthcare and leisure costs often rise.
Use benchmarks to check your progress
Fidelity's age-based targets help you gauge progress: 1x salary saved by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67. The median retirement balance for Americans 55-64 is roughly $185,000, per the Federal Reserve, so many people are behind these marks. If you are, catch-up contributions (an extra $7,500 in a 401(k) at 50+), delaying retirement, and waiting to claim Social Security can all close the gap meaningfully.
Build healthcare into your number
Healthcare is a major and often overlooked cost. Fidelity estimates a 65-year-old couple may need about $330,000 for medical expenses in retirement. Original Medicare leaves gaps with no out-of-pocket maximum, which is why many retirees add a Medigap plan for predictable costs. Factoring this in prevents a savings shortfall. Call 1-800-MEDIGAP at 1-800-633-4427 to estimate your Medicare costs.