When you think about retiring, how do you come up with how much you think you’ll need? For me I use the 4% rule with a little bit of extra fat. Curious if others do the same.

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I’m going for 12-15x my final salary in 401k just because I wanna ball out a little when I retire.

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I have operated by thinking that I need to save 5x my current salary, so I put aside 10% for my retirement fund. I had a late start to saving for retirement so that's how I approach it

Is the 4% rule 4% of your gross income?

The rule of thumb I have always heard is to save 10x your pre-retirement salary by the time you retire. So, I just elect to max out my retirement contributions year to year. That is something I have been doing ever since I started working full time as an engineer. That to me is the easiest way to ensure I have enough.

I have been told save 10-12x my yearly income inside a 401k and that number you can easily find because you know how much you make. Once your 401k hits that amount you should be able to safely retire on 4% withdraw I believe

2 million is my goal

If you have a 35 or 40 year career your salary will hopefully increase substantially over time so maintain as high a percentage as you can manage and If your employer matches a part of your retirement contribution then ensure you put in at least enough to get all of their match. I was fortunate to work for a company that still had an employee pension plan which they have since stopped for new employees but are still maintaining for long time employees. SS plus pension plus 401K is a decent retirement. Most retirees likely only have 2 of the 3 now.

Same

I think the 4% rule is a good one, that way you will never touch the principal. My overall target is $3,500,000 - $5,000,000 which would yield an annual retirement "salary" of 140k - 200k.

Good question. I'm still trying to save as much as possible, but I should start looking into how much I actually need.

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