According to a recent Pew Research Center report, 40% of adults worry they won’t have enough money to last through retirement.

But how much is “enough”?

Data from the Bureau of Labor Statistics indicates retirees spent an average of $59,616 a year in 2025, or a little less than $5,000 a month. Of course, $5,000 a month isn’t enough for everyone — many experts recommend saving enough to have access to 70% to 80% of your current income.

So, if your pre-tax salary is $100,000 a year, you’d need access to $70,000 to maintain your current lifestyle in retirement, or about $5,833 a month. To reach 80%, you’d need approximately $6,666 a month.

CNBC’s retirement calculator can help you estimate how much you need to put away each month to reach your goal.

To get a more specific idea of how much you’ll need monthly in retirement, Vanguard senior financial analyst Sabino Vargas recommends creating a detailed budget, incorporating your current spending and saving habits, as well as expenses that may change in the future — like health care, travel and mortgage payments.

“Write it down on paper, or store it in an app,” Vargas told CNBC. “It should be a living tool that can be updated and changed over time.”

George Mannes, personal finance editor at AARP The Magazine, suggests taking your retirement budget “for a test drive.”

“Do it while you’re still working,” he said. “See how it balances dining out, entertainment and other things so you know if it’s something you could follow long term.”

And, he adds, don’t panic if you see a gap between your goal retirement income and what’s in your nest egg.

“If you’re five to ten years away from retirement, it’s not too late,” Mannes said. “There’s still a lot of time to cut back on expenses and rejigger your lifestyle.”

Where to get retirement income — and how to maximize it

You may already have these income streams on your radar. But are you making the most of them? 

Retirement accounts

If your company offers a tax-deferred 401(k) plan, take advantage of any employer matching program. If you make $100,000 each year and contribute 6% of your pre-tax income, you’ll have set aside $6,000 at the end of 12 months. If your company offers a 4% match, however, that’s an extra $4,000 in “free” money.

If you have room in your budget to max out your 401(k) contributions, go for it. Workers 50 or older can add additional catch-up contributions. (If you’re 60 to 63, you’re eligible for “super” catch-up contributions.)

2026 catch-up contribution limitsRetirement plan 2026 contribution limit 2026 catch-up contribution (age 50+) 2026 “super” catch-up contribution (age 60-63) 401(k), 403(b), 457(b)$24,500.00$8,000.00$11,250Traditional and Roth IRA$7,500.00$1,100.00N/ASIMPLE IRA$17,000.00$4,000.00$5,250

An individual retirement account (IRA) isn’t tied to your workplace, so you can keep making contributions if you change jobs. With a Roth IRA, contributions are taxed before they are deposited. That makes it a good option if you expect to be in a higher tax bracket when you start making withdrawals.

If you’re new to saving, consider a traditional or Roth IRA with Fidelity. There’s no minimum investment requirement and clients enjoy top-notch customer service and robust educational resources.

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Investment options

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Educational resources

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Social Security

According to Mannes, most people can count on Social Security to replace between 35% and 40% of their income. But that’s assuming you wait until your full retirement age (FRA). For people born in 1960 or later, that’s 67.

“You can begin taking Social Security at age 62, but if you do, you’ll miss out on 35% to 40% of your benefits,” said Mannes. “If you can’t work or absolutely need the money, go ahead and take it. But one of the best things you can do is wait until your full retirement age — or even until you’re 70.”

If your FRA monthly benefit is $2,778, for example, waiting until 70 would boost that to $3,575. Starting at 62, though, will result in a monthly payment of just $1,822.

The Social Security Quick Calculator can give you a good idea of what claiming benefits early versus waiting until full retirement age (or later) will look like.

Investments and savings

Approximately 35% of Americans expect to rely on Social Security and their 401(k) as their primary retirement vehicles, according to the U.S. Census, but the median 401(k) balance for a 64-year-old is just $95,642. Dividends from stocks, interest from bonds, CDs, rental property income and other investments are key to building a nest egg you can actually live on.

Annuities

Once commonplace, defined-benefit pensions are rare outside of government jobs. Only about 15% of private-sector workers have a pension, according to the Department of Labor Statistics.

If you’re worried about outliving your retirement savings, an annuity can also offer guaranteed income for a set period or even for life. 

Health Savings Account

If you have a high-deductible medical plan, a Health Savings Account is a great way to cover Medicare premiums and other health care costs in retirement.

“You contribute money tax-free, it grows tax-free and you can use it on medical expenses tax-free,” Mannes said. “It’s one of the greatest deals you can get.”

Unlike a Flexible Spending Account, HSA contributions roll over year after year and can grow indefinitely. And unlike a 401(k), an HSA doesn’t have a required minimum distribution.

After age 65, the funds can also be used for non-medical expenses, in which case they’re taxed as ordinary income.

Home equity

If you’re at least 62 and have racked up substantial equity (or own your home outright)  you may be a good candidate for a reverse mortgage. A lender provides a lump sum, a series of payments or a line of credit and, so long as you live in the house, you don’t have to pay anything.

The loan is due when you sell the house, stop using it as your primary residence or pass away.

You can borrow against the equity accrued in your home with a reverse mortgage

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There are risks, though: If you can’t keep up with maintenance or make property tax and insurance payments, your lender can foreclose. Even if you do, you could be leaving your heirs with a sizable financial mess to sort out.

Downsizing

Selling your home and moving into a smaller or more affordable place is a common strategy, but it also has drawbacks. 

“Downsizing is tricky,” Mannes said. “It costs a certain amount of money to move and it still costs a certain amount of money to keep the lights on. So you have to really do the math to see if it’s worth it.”

FAQs

How much should I have saved for retirement?

There are different strategies for determining how much you’ll need in retirement. One rule of thumb is to put aside enough to have access to 70%-80% of your current income. Another is to have ten times your income saved by age 67. To manage that, you would have 1x your income saved by 30, 3x by 40, 6x by 50 and 8x by 60.

What’s the difference between a traditional and Roth IRA

The big difference is when you pay taxes. With a traditional IRA, you contribute pre-tax dollars, which is better for cash flow but means you’ll be paying taxes when you retire and are likely in a higher tax bracket. With a Roth IRA, you pay taxes before you contribute and are likely in a lower bracket.

What is the 4% rule and how can it help you stay on track in retirement?

Popularized in the 1990s, the 4% rule states that you should be able to comfortably live off 4% of your investments in your first year of retirement, then slightly increase or decrease that amount to account for inflation in subsequent years. Based on historical data, living off 4% should allow you to use your retirement portfolio to cover expenses for 30 years.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice to help them make informed financial decisions. Every retirement article is based on rigorous reporting by our team of expert writers and editors. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.