How much do you really need to retire comfortably?

It’s a fundamental question, arguably the most important, in the financial planning field. The honest answer is… it depends. That’s why, at Whitaker-Myers Wealth Managers, we build our clients a plan tailored to them to determine exactly what is “enough”.

The Basics

The first thing I would say is that it’s not a magic number or a one-size-fits-all scenario. While it is great to have a goal of reaching a net worth of $1 million, $10 million or higher, these numbers are arbitrary if they cannot support the lifestyle you wish to achieve in retirement. Do you wish to maintain your current lifestyle in retirement, or are you planning to take more vacations, buy a new car, or help with your grandchildren and other loved ones? You may be on the opposite end of the spectrum and want to begin minimizing expenses by downsizing your home.

What we find is that most retirees spend more in their early years of retirement, and this spending begins to dwindle as health and mobility decline.

The point is, it’s important to have both your financial and spending goals in place before arriving at your destination to be properly prepared. An Olympic athlete doesn’t just ‘show up’ every four years to compete.

Saving 15% Toward Retirement

A good rule of thumb for determining how much you should be saving towards retirement is to take your gross (pre-tax) income and multiply it by 15%.

Withdrawal Rates

This is one of the biggest factors when building a financial plan and determining the big question: ‘Do I have enough for retirement?’ The answer to many questions in the finance industry is the same: it depends. A withdrawal rate is the percentage of a retirement portfolio withdrawn each year to provide income while aiming to preserve assets over the long term. 

A common rule of thumb is the 4% rule, which originated in the 1990s from Bill Bengen’s research. Bengen found that even in the worst historical market conditions, a retiree who withdraws 4% in year one, then adjusts that dollar amount for inflation each year after, should be able to sustain a 30-year retirement without running out of money. This figure serves as a general guideline for a 30-year time horizon, specifically. Someone retiring earlier or planning for a longer retirement should plan differently. It’s also worth noting that Bengen himself has since revisited his own rule: in a 2025 book, he raised his recommendation starting withdrawal rate to 4.7%, based on a broader mix of asset classes than his original 1994 research used.

Planning for Inflation

As JFK once said, “Ask not what your country can do for you-ask what you can do for your country”. Well, you should be asking the same of your dollars, and the answer is that they cannot do as much for you in the future because inflation is consistently eating away at their purchasing power. That is why it is crucial not only to focus on growth-oriented investments pre-retirement, but also to keep at least some portion of your portfolio invested in them post-retirement.

While it is true that everyone has their own risk tolerance, yours may not be as high as others’. The last thing we want as financial planners is to help you plan and save for retirement, only to see the plan fail because we took too little risk with the assets we’ve been given to steward. As great as it would be to retire and throw your life savings into a High Yield Savings Account or some sort of annuity, earn a minimal amount of interest while the banks or life insurance companies go out and make more money using your dollars, that just isn’t the reality for most. I like to think of Matthew 25: 14-30, when Jesus tells the parable of the talents. This tells us not to take huge risks with what we’ve been blessed with, BUT we are expected to be wise and try to multiply what we have to not only benefit our own lives and our families, but also to use it for the good of the Lord.

Timing

Another important factor in determining how much you will need to sustain yourself in retirement is the timing of your withdrawals. Coordinating withdrawals with the start of Social Security benefits is an important decision, because claiming earlier will provide income sooner, but may reduce monthly payments, while delaying would increase monthly payments but require you to draw more from retirement accounts in the meantime.

Medicare eligibility is also an important factor when considering retirement timing, especially if retiring before age 65, as paying for private health insurance can be costly and eat away at a financial plan.

Another key consideration is sequence-of-returns risk, the possibility that poor investment returns early in retirement, combined with ongoing withdrawals, can significantly shorten a portfolio's longevity.

Developing a thoughtful withdrawal strategy that balances taxable and tax-advantaged accounts, aligns with Social Security and Medicare milestones, and accounts for market conditions can help create a more sustainable retirement income plan.

The Bottom Line

So, don’t just shoot for a magic number when considering your retirement goals. Instead, build a plan, lay out your finances, spending, and personal goals such as giving. Start tracking your progress by consistently saving and investing, and ensuring your investments align with your timeline.

If you do not have a financial advisor and want to discuss retirement, be sure to reach out to one of our team members to start discussing your financial plans.