![\"With](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/09\/iStock-2203798679-e1758562552527.jpg\")
<\/p>\n <\/p>\n
\n kate_sept2004 \/ iStock.com <\/p>\n
Commitment to Our Readers<\/p>\n
GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years Trusted by If you earn $100,000 a year and want to maintain that income into retirement<\/a>, plus account for inflation, how much would you actually need to save? That\u2019s the question Eric, a GOBankingRates reader, recently submitted as part of our Top 100 Money Experts<\/a>\u00a0series. To help answer it, we turned to Jamie Hopkins<\/a>, CEO of Bryn Mawr Trust Advisors,<\/a> chief wealth officer for WSFS Bank and a Wall Street Journal best-selling author.<\/p>\n Hopkins has extensive experience guiding clients on retirement planning and wealth management<\/a>, and his insights can help anyone looking to determine how much they need in their retirement nest egg<\/a>.\u00a0<\/p>\n<\/p>\n A Quick Initial Analysis\u00a0<\/p>\n To give Eric a broad sense of what he might need, Hopkins shared a general rule of thumb: If you\u2019re 10 years or more from retirement, you will likely need about 70% to 80% of your pre-retirement income to maintain your lifestyle.<\/p>\n Since Eric makes $100,000 a year, that translates to roughly $70,000 annually. But that begs another question: How much would Eric need in savings to generate that amount of money?\u00a0<\/p>\n \u201cA short-form analysis is that for a 30-year retirement, you need 25 times that amount, or $1,750,000 saved for retirement,\u201d Hopkins said. \u201cThat assumes you have no Social Security<\/a> benefits. The average Social Security benefit for 2025 is about $2,000 a month, or $24,000 a year. Adding this to the equation, you\u2019re likely right around $1.1 million.\u201d\u00a0<\/p>\n Hopkins was clear that this estimate is a conservative starting point, as it does not account for the nuances of Eric\u2019s specific finances.<\/p>\n \u201cIf you work past 65, have more in Social Security, or spend less in retirement, you could need far less in savings,\u201d he added.<\/p>\n<\/p>\n The Factors That Drive the Numbers\u00a0<\/p>\n There\u2019s rarely a smooth, perfect path that leads you to the ideal number for a comfortable retirement. Both external and personal factors \u2014 like inflation<\/a>, general health or expected longevity \u2014 can have a profound impact on how much you\u2019ll need.\u00a0<\/p>\n \u201cWhen we talk about how much money you\u2019ll need in retirement, everything starts with the assumptions,\u201d Hopkins said. \u201cRetirement age, life expectancy and inflation are the three biggest drivers of the math.\u201d\u00a0<\/p>\n<\/p>\n He encouraged readers to think of their retirement savings goals as a \u201cmoving target,\u201d subject to change depending on any of these key factors. He broke down how each one could affect the outcome:\u00a0<\/p>\n Retirement age: To retire at 65 or 70 \u2014 that is the question. How you answer it could change the numbers dramatically. \u201cThose extra years of earning \u2014 and fewer years of drawing down your portfolio \u2014 make a huge difference,\u201d Hopkins said. \u201cPushing back Social Security for a few years can also have a huge impact.\u201d\u00a0 \u201cThis is one reason why Social Security and staying invested in the markets is so important \u2014 to help counterbalance inflation,\u201d he added.\u00a0<\/p>\n Hopkins acknowledged that it\u2019s a lot to consider, but ignoring any of these factors could mean falling short \u2014 even for high earners.<\/p>\n Building a Smart Strategy\u00a0<\/p>\n Many are familiar with the \u201c4% rule,\u201d which suggests withdrawing 4% of your initial retirement savings annually, adjusted for inflation, over 30 years, assuming a balanced portfolio<\/a> of large-cap U.S. stocks and intermediate-term government bonds. Hopkins called it a useful starting point but urged readers to treat it more like a guideline than a guarantee.\u00a0<\/p>\n<\/p>\n \u201cBy taking only 4%, in most situations you would die without spending down a single dollar of your savings, indicating this approach might be too conservative,\u201d he explained. \u201cIf you expect to be retired for more than 30 years, you could reduce the spending rate. If you expect to work longer and have a shorter retirement, you can increase your spending rate.\u201d\u00a0<\/p>\n Put simply, for every $1 million saved, you could expect about $40,000 in annual withdrawals, adjusted for inflation.\u00a0<\/p>\n \u201cTo support $100,000 of annual income from your investments for 30 years without running out of money, you\u2019d be looking at closer to $2.5 million,\u201d Hopkins said.\u00a0<\/p>\n However, withdrawal rate isn\u2019t the only key part of a smart retirement savings strategy<\/a>. How you structure your money can also work to your advantage. Hopkins described the building blocks of a strong plan:\u00a0<\/p>\n Diversify across stocks, bonds and cash to balance growth and stability.\u00a0 Working with a financial advisor helps customize a plan, including withdrawal strategies tailored to your goals.<\/p>\n Working in Retirement\u00a0<\/p>\n Though working in retirement<\/a> may sound counterintuitive, Hopkins shared that any income you earn \u2014 whether through a part-time job, freelance consulting or rental property \u2014 can alleviate some of the burden of building a large nest egg.\u00a0<\/p>\n \u201cWorking longer is the most powerful thing you can do if you\u2019re nearing retirement and facing a retirement income shortfall,\u201d he said. \u201cWorking for just six months longer can be equal to saving an extra 1% of your earnings for 30 years.\u201d\u00a0<\/p>\n Hopkins offered a hypothetical: If Social Security provides $30,000 a year and part-time work adds $20,000, the required savings to reach $100,000 annual income drops to $50,000.<\/p>\n<\/p>\n \u201cThis is why I tell people: Retirement isn\u2019t always a hard stop for working. Instead, it\u2019s a time when work can become optional,\u201d he said. \u201cMore Americans are blending work and retirement, which makes both the financial and lifestyle sides of retirement easier to manage.\u201d\u00a0<\/p>\n Bottom Line\u00a0<\/p>\n Hopkins stressed that there is no single \u201cmagic number\u201d for retirement savings.\u00a0<\/p>\n \u201cFor one person, $2.5 million might be more than enough. For another, even $5 million may not cover their lifestyle and healthcare needs,\u201d he said. \u201cAnd for others, $500,000 plus Social Security might be plenty. In the end, it\u2019s about your desired lifestyle, your expenses and your income.\u201d\u00a0<\/p>\n Ultimately, Hopkins advised readers to work with a trusted financial planner<\/a>, stress-test their plans and adjust over time.\u00a0<\/p>\n \u201cAt the end of the day, retirement success isn\u2019t about hitting a perfect number \u2014 it\u2019s about having a plan that adapts as your life unfolds,\u201d he said.\u00a0<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
<\/p>\n
Helping You Live Richer<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-experts-review.svg?webp=1&quality=75\"){kind=icon}
<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon__trusted.svg?webp=1&quality=75\"){kind=icon}
<\/p>\n
Millions of Readers<\/p>\n
\nLife expectancy: One of the biggest mistakes retirees make is underestimating how long they\u2019ll live<\/a>, leaving them vulnerable to outliving their savings. Hopkins recommends planning for at least 30 years in retirement. Of course, retiring later naturally shortens the period of withdrawals.
\nInflation: Hopkins noted that even at 2% to 3% per year, the cost of living doubles roughly every 25 years. If a reader like Eric wants $100,000 of purchasing power today, he might need $200,000 or more annually in the later retirement years.\u00a0<\/p>\n
\nConsider bucket or time-segmentation strategies, where short-term spending needs are held in safer assets while longer-term money remains invested for growth.\u00a0
\nBuild in flexibility \u2014 spend a little less in down markets and more when the market is strong.\u00a0<\/p>\n