The Exact Net Worth You Need to Retire at 40, 50, and 60
Forget vague advice. Here are the specific numbers you need to retire at each age—and how to calculate your own target.
How much do you actually need to retire?
Financial advisors give frustratingly vague answers: “It depends.” “Everyone’s different.” “Work with a professional.”
Let’s skip the hedging and get specific. Here are real numbers for retiring at 40, 50, and 60—based on actual math, not hand-waving.
The Formula: 25x Annual Expenses
The foundational retirement math is simple:
Retirement Number = Annual Expenses × 25
This comes from the 4% rule: withdraw 4% of your portfolio annually, and historically, your money lasts 30+ years.
Spending $60,000/year? You need $1.5 million. Spending $80,000/year? You need $2 million. Spending $40,000/year? You need $1 million.
But this baseline assumes retirement at 65. Earlier retirement changes the math.
Calculate your specific number with our Retirement Calculator.
Retiring at 60: The “Early” Standard
Retiring at 60 gives you 30-35 years of retirement (assuming life expectancy of 90-95). The 4% rule was designed for roughly this timeline.
The Numbers:
| Annual Spending | Net Worth Needed |
|---|---|
| $40,000 | $1,000,000 |
| $50,000 | $1,250,000 |
| $60,000 | $1,500,000 |
| $80,000 | $2,000,000 |
| $100,000 | $2,500,000 |
Adjustments for 60:
- Social Security starts in 2-7 years (reduces needed portfolio)
- Medicare kicks in at 65 (reduces healthcare costs)
- Traditional retirement accounts accessible penalty-free at 59½
Real example: Sarah wants to retire at 60 spending $60,000/year.
- Social Security at 67: ~$25,000/year
- Needed from portfolio after 67: $35,000/year
She needs $1.5M at 60 to bridge to Social Security, then only $875K working after 67 (but she’ll have grown the portfolio by then).
Social Security is more valuable than people realize.
Retiring at 50: The Stretch Goal
Retiring at 50 means 40-45 years of retirement. The math gets harder.
The Problem:
- 4% withdrawal over 45 years has meaningful failure rates
- 15 years until Social Security
- 15 years until Medicare
- Retirement accounts locked until 59½ (with exceptions)
The Numbers (at 3.3% safe withdrawal rate):
| Annual Spending | Net Worth Needed |
|---|---|
| $40,000 | $1,212,000 |
| $50,000 | $1,515,000 |
| $60,000 | $1,818,000 |
| $80,000 | $2,424,000 |
| $100,000 | $3,030,000 |
Critical additions:
- Health insurance: Budget $15,000-25,000/year until Medicare
- Taxable account access: Need funds outside retirement accounts
- Flexibility buffer: Extra 10-20% for sequence of returns risk
Real example: Mike wants to retire at 50 spending $60,000/year.
- Healthcare until 65: ~$20,000/year extra
- Total spending until 65: $80,000/year
- Spending after 65 (Medicare): $60,000/year
- Social Security at 67: ~$30,000/year
He needs ~$2.4M at 50 to be comfortable—$600K more than the base calculation suggests.
Use our Retirement Calculator to model your specific timeline.
Retiring at 40: The FIRE Dream
Retiring at 40 means potentially 50-55 years of retirement. This requires serious planning.
The Problem:
- Extremely long withdrawal period
- 25 years until Social Security
- 25 years until Medicare
- Most working years are behind you
- Kids might still be young
The Numbers (at 3% safe withdrawal rate):
| Annual Spending | Net Worth Needed |
|---|---|
| $40,000 | $1,333,000 |
| $50,000 | $1,667,000 |
| $60,000 | $2,000,000 |
| $80,000 | $2,667,000 |
| $100,000 | $3,333,000 |
Critical considerations:
Health insurance is brutal. A family of four might pay $25,000-35,000/year in premiums alone until Medicare. That’s $625,000-875,000 over 25 years just for insurance.
Lifestyle inflation. Your spending at 40 might not match spending at 50, 60, or 70. Kids’ college, aging parents, healthcare—expenses change.
Flexibility is essential. The ability to earn some income dramatically improves success rates. Even $20,000/year part-time reduces portfolio requirements by $500,000+.
Real example: Lisa wants to retire at 40 spending $60,000/year.
- Healthcare until 65: $25,000/year → additional $625,000 needed
- Kids’ college: $100,000 set aside
- Conservative withdrawal rate (3%): Requires $2.8M base
Total need: ~$3.5M
That’s aggressive. Which is why most “40 retirees” actually do Coast FIRE instead.
The Coast FIRE Alternative
For many, full retirement at 40 isn’t realistic. Coast FIRE offers a middle path.
With Coast FIRE, you save aggressively until your portfolio will grow to your retirement number through compound interest alone. Then you work for current expenses only—no more retirement saving required.
Example Coast FIRE Numbers at 40:
| Target at 65 | Coast Number at 40 |
|---|---|
| $1,500,000 | $311,000 |
| $2,000,000 | $415,000 |
| $2,500,000 | $519,000 |
(Assuming 6% real returns over 25 years)
Having $415,000 at 40 means you’re done saving for retirement. Work becomes optional for income, not mandatory for future security.
Calculate your Coast FIRE number with our Coast FIRE Calculator.
The Paths to Each Number
Reaching $1.5M by 60 (Retire at 60)
If you start at 25:
- Monthly investment needed: $650
- Total contributions: $273,000
- Growth does the rest
If you start at 35:
- Monthly investment needed: $1,400
- Total contributions: $420,000
If you start at 45:
- Monthly investment needed: $3,600
- Total contributions: $648,000
(Assuming 7% returns)
Reaching $2M by 50 (Retire at 50)
If you start at 25:
- Monthly investment needed: $1,050
- Total contributions: $315,000
If you start at 35:
- Monthly investment needed: $3,200
- Total contributions: $576,000
The math is harsh. Early retirement requires early, aggressive saving.
Reaching $3.5M by 40 (Full retire at 40)
If you start at 25:
- Monthly investment needed: $4,700
- Total contributions: $846,000
If you start at 30:
- Monthly investment needed: $8,800
- Total contributions: $1,056,000
This is why full retirement at 40 is rare. The required savings rate is brutal unless you have very high income.
Which Path Fits You?
Retire at 60 is achievable for most people who start investing in their 20s or early 30s. Maximize tax-advantaged accounts, invest consistently, and time does the work.
Retire at 50 requires intentional planning, higher savings rates, and careful attention to the healthcare gap. Achievable for high earners or aggressive savers.
Retire at 40 demands either very high income, extreme frugality, or both. More realistic as Coast FIRE than full retirement.
Your Next Steps
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Determine your spending. Track actual expenses, not guesses.
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Calculate your number using our Retirement Calculator.
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Find your Coast FIRE number with our Coast FIRE Calculator—it might be closer than full retirement.
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Run the monthly math. What do you need to invest to hit your target?
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Adjust the variables. Retiring at 55 instead of 50? Working part-time? Living cheaper? Each change moves the needle.
The numbers above are benchmarks, not mandates. Your retirement is personal—but the math is universal.
Know your number. Work toward it. Adjust as life happens.
That’s the whole game.